Accountant or not?

Hi All,

For the last 6 years I've been lodging my own tax return via e-tax, in the recent months I've acquired 2 IPs and will plan to purchase a few more in the future. I was wondering whether it would be recommended to have an accountant who is investment savvy to do my tax now? I'm quite happy to give it a go myself as I don't think it's that complex, however if an accountant is able to achieve a higher return I'd be incline to go with one.

How much do they usually cost? I'm guessing it would be charged hourly?

Cheers

 

Yes, would highly recommend you seek out someone who is an expert in the area. It obviously would be cheaper to do it yourself but the saying 'you don't know what you don't know' applies here and you could miss out of extra deductions. They'll also be more strategic about it too. Eg they might mention that if you do x,y,z next year, you'll receive a bigger deduction.

Cost depends on how organized you are, if it's a straight forward Excel sheet with all expenses layer out nicely for each IP etc then you'll save hundreds over the shoebox of unsorted random receipts.

Email @Paul@PFI or Nick Moustacas at Stategic Wealth Management are well regarded.

 

And of course make sure to have your Depreciation Schedules sorted out by end of month.

 

@Sonamic makes a good point. Furthermore, I'd ask have you done depreciation schedules for the 2 IPs you already have? This can be a significant deduction as well as the QS fee.

 

I haven't done them yet, but they are on the to do list. Does anyone have recommendations for a QS in Brisbane?

 

Why yes I do! @Depreciator and BMT are well regarded.

Recommend me a QS

 

Depreciation schedules are very important. @Depreciator is excellent.

 

I can vouch for Nick as we have been a client of his for 15 years doing our tax returns as well as setting up our trusts, providing advice buying one business, providing advice selling two businesses, converting our SMSF to pension phase, ...

I can't vouch for Paul as I do not know him/am not a client of his BUT I do like and read with a lot of interest his posts on PC.

I am sure you couldn't go wrong with either provider.

 

yes - use an accountant for sure.

@Paul@PFI is great. You'll be in good hands.

Cheers

Jamie

 

What I used to do is prepare all my taxes and work out what I would think is the correct income and then send it over to the accountant. He would always find some little thing that I had missed and that nearly always was more than the fee.

Once the accountant has done his work you then check where you went wrong and learn.

 

Deppro is another. I believe these three offer you a discount if you tell them you are a PC member.

 

The new IPs will have deductions available in the settlement sheets, borrowing expenses etc.

Another area a good property savvy accountant will help is giving good advice and preventing errors. example - Claiming travel to go to QLD and find and buy the IPs is non-deductible.

Another issue to consider (and then make a decision) is doing a PAYG Variation to bring forward expenses 2017 year neg gearing as reduced PAYG withholding. Once you know the QS deductions and expected 2017 year income / expenses you may note a $25K tax loss. That could bring $350 a fortnight in cashflow with a variation.

 

I have just changed our accountant to Nick from Strategic Wealth Management and from the get-go they have been on the front foot. Have used a few accountants in the past and i'm already impressed how they go about their business and I haven't even got my Tax return done!

 

Nick is very good. I used to be a technical adviser and had dealings with him. You wont go wrong. The Greek God of Hurstville.

 

You are both the best and worst kind of client

What has been said is absolutely correct, I reckon the fact that you're asking the question in the first place is basically the sign that you know you're reaching the limits of your knowledge base on preparing the return and are aware that there are going to be some things you don't know.

Another thing that is worth seeing the accountant early for is to advise whether it's worth your while completing a PAYG Withholding variation for the next year, if you've recently purchased the properties there is a good chance they'll be negatively geared and completing the aforementioned form would mean you get the money in your hands now rather than letting the ATO hold onto it for the next 12 months, you may as well earn/save the interest by having it right?

As a rough estimate if you're giving well collated information (so summarised excel sheet or similar and not a shoebox of receipts and half the information missing) you'd probably be looking in the 500-1000 range for a cost on two rental properties and any other information but this is only a rough estimate and you might find cheaper or get better service paying more but get a couple of quotes and go from there.

A good way to minimise the cost is to ask the accountant exactly what information is needed (settlement statement, loan statements, repairs and maintenance, council rates, land tax, water rates, property management statements, etc, etc) so that you can collate the information and have it as organised and ready to go.

 

$500-$1000 for tax with 2 IPs if its well summarised? Another way may be to find someone good who is cheaper...

I try to find / offer alternatives to "seeing" clients initially as this reduces costs too - For them. Many practices who work on hourly rates dont want to focus on lowering client specific billable hours as it threatens their revenue. I see it as increasing scope for more clients. T/Over increased by a large % this year, and the one prior etc. I couldnt take on more doing it the old way.

I welcome face to face and its the best for some issues such as complex advice but the traditional face to face after travel through traffic isnt very productive. (I'm not that good to look at either) Watching me enter data into a return is way unproductive. The discussion after its drafted is often more productive as it focuses on what the client wants to ask, learn or change and any issues or observations made while doing the work.

Many accountants are traditionalists and avoid change. Technology is bringing rapid change and I know I must be competitive. Our systems and internal efficiencies we have built help us to keep costs down.

 

We used an accountant when we had several IPs.

However, I did all the calculations myself, and then basically just sat down with the accountant while he entered the figures into his computer program. Only there for 30 minutes or so and only ever paid $200-$300.

Initially with one IP we did the tax returns ourselves. We started using an accountant when hubby got a substantial redundancy payment and we had to make sure he got all the correct tax concessions.
Marg

 

Apologies in advance to any accountant that I offend.

Yeah, when I was younger, I was going to be an accountant and then I found I had a personality .

 

That's a lot tamer than the usual joke

Q: What do accountants use as a contraceptive?
A: Their personality.

What Paul said is spot on, it's a very old school industry that stubbornly resists any change or innovation, I find that the worst part about the job personally.