The Hidden Risk Behind the Numbers: Why SME Accounting Advice Matters More Than Ever
Let’s start with this: most accountants in New Zealand are doing excellent work.
They’re trusted advisors, strategic thinkers, and critical partners in helping businesses grow and adapt. I work alongside many of them — including close friends and former colleagues — and I see the difference they make every day.
But there’s a small minority letting the sector down. And the consequences are serious.
What I’m Seeing on the Ground
In my work as an insolvency practitioner and turnaround specialist, I’ve seen too many businesses fail — not just because of tough economic conditions, but because they weren’t getting the right advice.
Just yesterday, I met with five SME owners across construction, motor vehicles, and other industries. Two of them said they were considering lodging formal complaints with the professional body over the advice they’d received. This isn’t a one-off. These conversations are becoming a regular part of my day.
Anecdotally, many of the clients who come to me in financial distress have previously worked with accountants who are not affiliated with any recognised professional body. While there are skilled professionals outside these bodies, the lack of formal oversight makes it harder for business owners to assess quality and accountability when something goes wrong. This isn’t about discrediting hardworking professionals — it’s about ensuring SMEs have access to the support they need to succeed.
The Cost of Missing Advice
In 2024, company liquidations in New Zealand rose by 37% compared to the previous year. Construction, retail, and hospitality were hit hardest. These aren’t just statistics — they represent jobs lost, families impacted, and communities disrupted.
Too often, I see accountants acting as little more than tax processors — filing returns, preparing year-end accounts, and sending a bill. No commentary. No risk analysis. No forward-looking advice.
That’s not enough.
SMEs need more than compliance. They need insight. They need someone who can spot the warning signs early and help them act before it’s too late.
Accountability Matters
Here’s the uncomfortable truth: if your accountant isn’t part of a professional body, there’s no formal oversight.
- No professional conduct framework
- No complaints process
- No disciplinary procedures
I am a proud member of Chartered Accountants Australia and New Zealand (CA ANZ), and as members we are held to strict professional and ethical standards. We are required to stay up to date, act with integrity, and are subject to a formal disciplinary process if they fall short.
When you work with a CA ANZ member, you’re not just hiring someone to manage the books — you’re engaging a professional who understands business, risk, and strategy.
What Can SMEs Do?
Here are three steps you can take:
- Expect more: Your accountant should help you understand your financial position, identify risks, and plan ahead — not just file returns.
- Ask questions: What qualifications does your accountant hold? Are they a member of a professional body like CA ANZ?
- Make a change if needed: If you’re not getting the support you need, it’s okay to look elsewhere. The right advisor can make all the difference.
There Is Hope
Despite the challenges, there’s real opportunity. We’re in a slow recovery — but it is a recovery. With the right advice, SMEs can stabilise, grow, and thrive.
By Larissa Logan – Licensed Insolvency Practitioner, Turnaround Specialist, and Auckland Regional Councilor for Chartered Accountants Australia and New Zealand
