7 Business Planning Pitfalls Your Accountant Can Help You Avoid

Between juggling customers, staff, and that one leaky tap in the office kitchen, it's easy to overlook the financial cracks forming beneath your feet. The trouble is, the worst mistakes don’t usually show up with flashing lights and dramatic music. They creep in quietly, like that unpaid invoice from July.

The upside? Most of these pitfalls are entirely avoidable, especially with the help of an accountant Dunedin business owners trust to keep things shipshape. These accountants are like the co-pilots who keep businesses from flying straight into money-sinking pitfalls—the most common of which are these: 

1) Mixing Business and Personal Finances

To kick things off, combining business and personal finances in one account might feel convenient. This is common practice especially among small business entrepreneurs. It’ll be all and good until it becomes a financial spaghetti you can’t untangle. When the latter happens, one minute you're buying printer paper, the next you're claiming your cat's vet bill as a deductible. Would you really like for that to happen?

Unsurprisingly, your accountant will help you tidy things up. For one, they'll recommend that you use a dedicated business account so you can clearly see what’s going in, what’s going out, and whether your business is actually making a profit. 

2) Not Having Cash Flow Forecasts

Now, onto cash flow—the thing that keeps your business alive, right after coffee and stubborn optimism. Many assume that as long as the bank balance isn’t red, things are peachy. But it’s not just about how much money you have; it’s when it turns up.

That’s where your accountant comes in with their metaphorical crystal ball (also known as a spreadsheet). They’ll build forecasts that anticipate your business’s ups and downs. After all, if your rent’s due on the 1st but customers only pay on the 20th, you’re basically playing financial limbo—and your accountant should help pull you out of it. 

3) Lacking a Recordkeeping System

Bookkeeping isn’t everyone’s idea of a good time. But those shoeboxes full of receipts and post-its labelled “Important!!!” are a recipe for chaos. Even tools like Xero won’t save you if the data going in is imaginative.

Meanwhile, a good accountant will help you create a system that doesn’t make you wince every time tax season rolls around. Whether it’s weekly reconciliations or snapping photos of receipts with your phone, they'll help you go from panic to peace of mind. 

4) Confusing Contractors and Employees

Classifying workers correctly is more than just a matter of ticking boxes. It’s the difference between smooth sailing and being blindsided by Inland Revenue. Get it wrong, and you could end up paying PAYE, holiday pay, and superannuation for someone who was meant to be “freelance Steve.”

Fortunately, your accountant can help you sort this out before it turns into a full-blown mess. They’ll be responsible for checking each working relationship and making sure you’ve got the right contracts in place. It’s not exactly thrilling stuff, but it’s far better than a compliance audit.

5) Making Poor Long-Term Investments

That fancy new office espresso machine may seem like a vital business investment, but locking up capital in the wrong places can quickly reduce your financial flexibility and strain cash flow. So, before making big-ticket purchases, ask your accountant whether leasing, financing, or simply waiting until after tax season makes more sense. They’ll weigh up depreciation, tax implications, and resale value so that your investment doesn’t become the world’s most expensive coat rack.

6) Choosing the Wrong Business Structure

Many business owners pick a structure at the start and then forget about it. But your structure should evolve with your business. For example, what worked as an arrangement for a sole trader may be holding you back now. 

However, if you work closely with a financial professional, your accountant will know when it’s time to shift. They’ll help you transition from sole trader to company status (or even explore a trust) without it feeling like you’re trying to read Latin backwards. 

7) Falling Behind on Compliance

Let’s face it, keeping up with tax law changes is about as fun as assembling flat-pack furniture without the instructions. But ignoring compliance doesn’t just cost time; it can cost money, reputation, and the will to even continue doing business at all. 

For instance, if your turnover exceeds NZD 60,000 per year, you need to register for New Zealand Goods and Services Tax (GST). But that’s just the beginning. You also have to file and pay it on time. Miss a deadline like the 7 May return, and you’ll be greeted with hefty interest charges and late penalties.

Accordingly, a good accountant acts like your compliance calendar come to life. They’ll keep track of deadlines, make sure your submissions are clean, and help you claim everything you’re entitled to—minus the headaches.

Plan Your Business with Trusted Accountants

Success in business isn’t just about long hours, strong coffee, and crossing your fingers. It’s about making informed decisions at the right time, and avoiding the classic mistakes that trip up even the best of us.

In this case, your accountant is more than just the person who files your taxes. They’re your financial strategist and sounding board. From managing cash flow and planning investments to fixing your structure and keeping you compliant, they’ll do a lot to help you focus on growing your business without falling into costly traps. If you're serious about building something resilient and future-ready, team up with professionals who you can always trust to know their stuff.