My tax time pet hate

Discussion in 'Accounting & Tax' started by Biz, 13th Jul, 2015.

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  1. willair

    willair Well-Known Member Premium Member

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  2. Northy85

    Northy85 Well-Known Member

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    I always get nervous around tax time because the system is so complicated. I give all my info to the accountant and she inputs it into her system, then you end up with this figure based off percentages of use, low income brackets, health care levy rebates, depreciation etc etc etc. I find it very hard to believe that anyone who fills out a tax return is paying exactly the right amount of tax. My guess is most people are plus or minus about 5% on what they should be paying.
     
  3. Biz

    Biz Well-Known Member

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    What makes you so sure your accountant is doing it right? You don't know what you don't know.

    It's good to have a go at doing it yourself at least once I feel. It opens your eyes as to how it is done exactly. Have a go at doing it with Etax. For someone with a a PAYG job, private health and an investment property or two it will take you less than an hour. Takes longer to gather up all the info you need than to actually do the return. Most of the figures are automatically loaded via pre fill anyway. Private health, ato, banks etc are all linked in via mygov.
     
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  4. Northy85

    Northy85 Well-Known Member

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    Are you saying that the accountant is not responsible for any errors? They are the ones who went and studied at Uni and have that fancy looking degree hanging on the wall. You're completely right though, and it is a bit of a gamble if you have no idea what is claimable and what isn't.
     
    Last edited: 15th Jul, 2015
  5. EN710

    EN710 Well-Known Member

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    I know accounting 101, so I can predict my tax but can't be confident that it's correct. So I usually compare my prediction with actual return. If it differs by a lot, I dig further. Have found deductions being missed this way.
     
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  6. Biz

    Biz Well-Known Member

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    You're the one signing off on the return at the end of the day...
     
  7. Chilliblue

    Chilliblue Well-Known Member

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    Overhead today:

    "I am being audited by the tax office because they have said that I cannot be a carer for my wife when she is a carer for her mother...my accountant set this up over 3 years ago and we never had a problem before..."
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Most haven't been to uni! You will be signing off that you are correctly claiming expenses and declaring all income. You are liable. But if the accountant does something wrong then you have recourse against them.
     
  9. Northy85

    Northy85 Well-Known Member

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    Is this really true?! I actually had no idea about that, all of mine have had degrees from memory. Jesus, my tax return for this year is going to cost around $800 for like 2 hours work! I'm in the wrong job then hahah
     
  10. EN710

    EN710 Well-Known Member

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    I have accountant friends and family. It might look profitable, but I also know some of them come home at 8pm, 10pm, or even 2am especially on tax time. Are you sure you're in the wrong job? :rolleyes:
     
  11. Chilliblue

    Chilliblue Well-Known Member

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    Yes it is true and any good accountant would have explained it to you before signing.
     
  12. Perthguy

    Perthguy Well-Known Member

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    If it would take you hours to prove each line item, you are doing it wrong. When I need to find the records relating to any particular line item in my system, it only takes a couple of minutes.
     
  13. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I charge an agreed fee...Even better than a hourly rate in my view. If it takes three hours or just one you know the cost.
     
  14. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Who signs PAYG summaries ? Computer generated and emailed. Even the lodgement of the annual report this year took 30seconds as it was a upload to the ATO.
     
  15. Propertunity

    Propertunity Well-Known Member

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    My pet hate is when people on the forum ask about really petty stuff that might get them some piddly amount of tax back. Things like, "Can I claim a % of my wife/husband's time, internet useage, laptop, car, lunch, holiday trip, if I use it for IPs thast I may have or plan to have one day?" .....and if the answer was 'yes' they'd still only get a $50 tax return and it costs you $100 of your time to answer and explain the reason why/why not.
     
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  16. 158

    158 Well-Known Member

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    I saw my name printed in the computer generated ones and wasn't sure if I did have to or not - so I put my initial next to my name. No harm no foul.

    I always like to check them over as well anyway.

    pinkboy
     
  17. Greyghost

    Greyghost Well-Known Member

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    Hence why we do individual returns as part of business groups only..
    1. They are not cost effective to do
    2. Clients are never happy
    3. Most don't understand what you do and cannot appreciate that as above posters have mentioned, there are a number of factors I cannot change, such as incorrect tax withheld, HECS debts not disclosed, not ticking tax-free threshold etc..
    4. It is hard to charge good fees for individual tax returns. We are a business advisory firm so the tax returns are a necessary evil. Future of the Accounting industry is starting to shift more and more towards value add services. H&R block staff are not even qualified accountants, just trained on a short course on how to prepare basic tax returns.

    You should judge your accountant on the value he provides you
    How many questions he asks you year on year
    How he assist you in providing info to him in a better format to lower processing time and enable him to help elsewhere
    Has he enquired as to your retirement plans, referred you to an estate planner, financial planner, broker, estate agent etc etc - that are not for kickback purposes.

    If all you want is a quick tax return done then so be it, but there is a big difference between a compliance accountant and an advisory accountant - hence the price difference too.
     
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  18. Greyghost

    Greyghost Well-Known Member

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    Claim cents per km method - 5,000kms.
    Magic tax refund generator :cool:

    (above is not advice, just what I see time and time again in new clients returns from previous years, amazed at how many claim this when not entitled to it)...
     
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  19. spludgey

    spludgey Well-Known Member

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    See, I think this is where the issue lies. If I come to you and ask for a quote for 2 people on PAYG and 8 IPs, you'll give me a quote that's irrespective of whether I come with a stack of shoe boxes with loose receipts or with a single spreadsheet that has everything where it's meant to be.

    Or do you take this into account with your agreed fee?
     
  20. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Spludgey - I do have a condition. I require "reasonable summaries". I don't expect a excel sheet must be perfect or a specific format either. And happy to guide etc.That's why its an agreed fee. I agree on what I will charge you based on the input. I don't want shoebox / aldi shopping bag clients.

    I also qualify for issues such a problematic CGT. I always offer to requote extra costs before its incurred and seek approval or offer suggestions to avoid / lower it. I think its fair.
     
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