Are You Burning Money Like Pablo Escobar?

In one of the most bizarre stories in history, Pablo Escobar once burned $2 million in cash ??just to keep his daughter warm.

A jaw-dropping amount of money up in flames, without anything in return except a few hours of heat.

Yet, many accounting firms in New Zealand are doing something similar.

Not by literally setting stacks of cash on fire but by spending massive amounts on overhead costs, rising salaries, and operational inefficiencies without seeing a proportional return.

The cost of doing business in NZ is rising - and you know it!

The cost of living in New Zealand has risen by nearly 4% in the past year.

And with that, the cost of hiring and retaining talent has skyrocketed.

Accountants, tax advisors, and finance professionals are demanding higher wages to keep up with inflation and increasing living expenses.

For your firm, this means:

• Higher salary expectations from both new hires and existing staff
• Increased operational costs - from office leases to software and compliance
• Shrinking profit margins despite working longer hours

If you’ve felt like you’re working harder but keeping less, you’re not alone. Many firms across the country are finding it harder to scale and even harder to stay profitable.

Hiring is more expensive than ever, and it isn't getting better anytime soon

The labour market in New Zealand is tighter than the anticipated numbers, with skilled accountants in short supply. Recruiting the right talent is not only challenging but also extremely expensive.

Consider this:

• The average salary for an experienced accountant in NZ has increased by over 10% in the last three years.
• Firms are spending thousands in recruitment fees to fill critical roles - only to see employees leave within a few years.
• Even entry-level hires are expecting competitive pay, benefits, and flexibility that put additional pressure on firms

So, what’s the solution? Throw more money at the problem? Or find a smarter way to operate?

The Smart Firms Are Doing Things Differently

The most successful firms in New Zealand aren’t burning money to stay afloat.

Instead, they’re restructuring their operations to reduce costs while increasing efficiency. One of the biggest shifts we’re seeing? Offshoring and outsourcing key tasks.

Here’s why firms are making the switch:

• Offshoring tax prep, bookkeeping, and payroll—cutting costs by up to 50%
• Delegating routine tasks so in-house staff can focus on higher-value advisory services
• Increasing efficiency by leveraging global talent without sacrificing quality

Imagine slashing your overhead costs without compromising on quality.

Imagine freeing up your best people to focus on strategic growth instead of getting buried in paperwork.

Real firms, real Results

Let’s talk about a firm just like yours.

One of our clients, a mid-sized accounting firm in Wellington, was struggling with hiring costs and tight margins.

Every new hire was stretching resources even thinner, and overtime had become the norm. They were burning money on expensive hires without seeing real growth.

They decided to offshore their tax preparation and payroll processing.

The results?

• Saved 40% on labor costs within six months
• Reduced overtime by 60%, giving their team better work-life balance
• Refocused on high-value advisory services, leading to a 20% increase in revenue

And here’s the best part: clients didn’t notice a difference - except for faster turnaround times and improved service.

What’s the real cost of NOT making a change?

Every month, you continue down the same path; you’re leaving thousands of dollars on the table. The firms that adapt now will be the ones that thrive in the coming years.

Think about it:

• How much are you spending on hiring, training, and retaining staff?
• How much time is wasted on tasks that could be handled more efficiently elsewhere?
• What would your firm look like if you cut costs without cutting quality?

2025: The tear you take control

2024 may have been a challenging year, but it was also a wake-up call for many firms. The firms that made real progress didn’t just work harder - they worked smarter.

If you’re ready to stop burning money and start making strategic moves that will position your firm for growth, we should talk.

Let's chat and see how offshoring can work for your firm.

P.S. Cannot get over the beautiful landscapes of NZ. Here's a pic from my recent client visit.