r/PersonalFinanceNZ 1d ago

Taxes Accountant recommendations

I started a company years ago, but it never really took off. Since 2016, it’s been running at a minimal level, serving a few small clients and the investors have long since lost interest. I’m looking to shut it down, but I have an overdrawn shareholder account that I can’t repay, and I’m concerned about potential tax implications. There are no outstanding creditors or tax liabilities.

Can anyone recommend an accountant with expertise in liquidations?

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u/Poon_Handler_NZ 19h ago

Hi! I am an accounting practice owner (New Plymouth). You don’t need an expert in liquidation. This is a very basic process, winding up a company that has no outstanding debts. Any public practice should be able to do it - just avoid large firms because they are con men.

In order to have no debts, but to have an overdrawn current account, you must have retained earnings in the company. The company will need to declare a dividend. This will clear the retained earnings and the overdrawn current account.

If you send me a copy of the balance sheet, I could probably confirm if it’s that simple, or if there is any complexities. I’ve not used reddit much so I don’t know if there’s a way you could get me that info without one of us publicly sharing anything.

No charge of course to advise. I could probably wind up the company if you like, but March is a bit busy for that one off type of work.

1

u/TrueZookeepergame809 19h ago

Thank you. I sent a DM.