Any accountants here?

[Macontour]

I have been using an Accountant for about 10 years now as I own a Rental property. I go through all my bank statements and add up all my various expenses under the different categories ie. maintenance, rates, body corp fees, management fees etc. and the income from the property even though the Managers provide that info. IRD provide my wage and salary/tax statement thingy.

I give the figures to the Accountant and a few days later I get a computerised printout telling me what I owe IRD>:crybaby:

It appears that all they do with the figures I give them is enter them into the appropriate spaces in their programme and it spits out the answer. Since there are only about 8 or 9 numbers to enter it surely can't take very long, its not like I am Terry Seripisos or Donald Trump, just one property fully paid off so not even interest calculations to do, and some wages.

The bill each year for the Accountants services including "consulting with you, phone calls, paper work, informing you of your tax position" and so on ad infinitum comes to about $800.

Is this excessive or am I getting a good deal? If IRD owed me lots of money each year it wouldn't be so bad but to pay out $800 and still owe IRD money sucks!

[darkwolf]

As hesitant as I am to answer this as it may open a whole can of worms. What exactly are you getting from your "accountant"? Firstly, there is a difference between a "tax agent" and an "accountant". A tax agent more commonly deals with your tax. A good accountant will provide you with a bunch of information on top of your tax information which you can use to ensure that you are operating your business in the most efficient manner - not just tax wise.

Having been a number of years since I did Business Advisory Services accounting work - as I handle Insolvency now - my memory of fees may be out-dated, and I never worked in the Auckland area but I would think $800 would be a good price if you are getting a full set of financial statements and an opportunity to discuss the statements with your accountant.

If it is just tax then maybe shop around. Many places would be happy to discuss taking you on as a new client.

[Usarka]

Pay the tax ya bludger! :whistle:

[TrentNz]

Speaking of Terry Seripisos, he owes my dad $50,000

[Padmei]

When I started up in business (1 man band sparky) I was pretty naive 7unsure what the going rates were. i went with a company that seemed pretty straght-up & helpful. I did all my reconciling, paye etc & handed the books over to the acccountant for EOY. I was charged approx $2500-3000 for the EOYs.
After a few years I asked around & most other guys in my situation were paying $800-$1000.
When I went looking for comparative prices from different companies & told them what my accountant did & charged me the perspective accountants looked away. I felt I had been very had.
I now pay about $800-900

I think you are paying a pretty standard rate.

[Winston001]

What you should expect from your accountant is a trustworthy relationship. Advice on business structures and relevant changes in tax law. For example hopefully you were told of the recent removal of depreciation allowances for building owners.

I'd have to say that $800 isn't high to have a set of accounts prepared and filed. What you are getting is a kind of insurance: having an accountant file the return with IRD means they are less likely to audit and inspect your returns.

You understandably think the bill is a bit much. Politely tell the accountants - see what they say. You should also check with other accountants and see what they say. Some larger accounting firms carry a heavy overhead with flash premises and the ability to give highly expert advice. The problem is the average client doesn't need any of that.

[Big Dave]

I'd have to say that $800 isn't high t

Sounds dirt cheap to me.

[Hoarn]

If all you have is one rental property, you do not need an accountant, you can do it yourself in a very short period of time. The fees you are getting charged are fairly standard, but it's $800 you don't need to spend so why spend it?

All the information you need once you have all your expenses and income totalled can be gained from the IRD website, through Online Services (for your salary/wage info) and the various guides, such as the IR264 Rental Guide, the IR320 Smart Business Guide, and the IR3 guide for the relevant year. If you have any queries while completing it just call the 0800 number. Also, if you stop using your accountant you can attend a seminar on completing you IR3/accounts which are run regularly for free, timing depending on where you live.

You have no obligation to use an accountant either. Just remember to keep your records for 7 years.

spend the money saved on new shineys for your bike! :woohoo:

[Mooch]

Pay less than $400 for end of year on the rental and income tax returns for us both. Wife is an accountant but we use a company that deals with rentals tax returns etc.

Quote (me) , does $800 sound much for this .... (accountant wife) wooah , we are paying half that

[Virago]

For comparison, I have a small business - four staff, around $500K turnover. My accountant does our two-monthly GST returns, manages our tax payments through the year, and does our business and personal end-of-year accounts and returns.

All for the princely sum of $800 plus GST per annum.

[Brett]

As hesitant as I am to answer this as it may open a whole can of worms. What exactly are you getting from your "accountant"? Firstly, there is a difference between a "tax agent" and an "accountant". A tax agent more commonly deals with your tax. A good accountant will provide you with a bunch of information on top of your tax information which you can use to ensure that you are operating your business in the most efficient manner - not just tax wise.

Having been a number of years since I did Business Advisory Services accounting work - as I handle Insolvency now - my memory of fees may be out-dated, and I never worked in the Auckland area but I would think $800 would be a good price if you are getting a full set of financial statements and an opportunity to discuss the statements with your accountant.

If it is just tax then maybe shop around. Many places would be happy to discuss taking you on as a new client.

If you have a decent understanding of financial statements, how to balance an account and basic accounting principles, then use Xero...it does all of this for you. All you need to know is how to make sure that you are entering the info in correctly - ie current vs non current assets/liabilities, what type of expenses are what etc. so that you don't code and account things incorrectly. This isn't hard and Xero has all of the support features to help even a reasonably ignorant user. I have used Xero for a year now and wouldn't change. That said...I still pay my accountant a fortune....:mad:
Of course, if it is business strategy and advice from an accounting perspective that you're after, then a good accountant is worth their fees.

[wtf?]

We pay around $800/pa for a full set of accounts. We pay another $350AUD for our tax returns over here.

2 rentals, 1 LAQC (or whatever they're called now). The missus and I are non tax residents earning in Aussie.

There are 3 people in life you don't want offside. Mum, God and the IRD. I regard that $800 as insurance. People have had thier lives fucked by the IRD (and ACC, as well) if they take a shine to you.

[Macontour]

Thanks for all your feedback. I may just talk it over with them and see if I am getting a good deal.