Five secrets of accountants

Ever heard the phrase ‘tax doesn’t have to be taxing’? Well, neither does accounting …

1. Accounting is easy Most people don’t realise that 70% of the stuff accountants do in the office was stuff learned at school. Sure, there are tricky bits here and there. But, basic things like doing personal tax returns are something most people with a little guidance are capable of doing themselves, saving a fair amount of accountancy fees. 2. Accountants are not the ideal people to ask for business advice When it comes to financial statements and tax returns, accountants are fantastic. They hammer out debits and credits like a second language and know all the tips and tricks to minimise your taxes. But, while they understand business, accountants are not businesspeople. Accounting is risk averse, whereas the nature of entrepreneurship is to take risks. When in need of advice on growing your business, you may be better off asking the marketing guy, the banker guy, the sales guy or best of all, a fellow entrepreneur. 3. Accountants charge high fees to unorganised clients Providing unorganised paperwork to your accountant means more time spent rummaging through your records for information – time that you are paying for. Ask your accountant how you can improve your record keeping to reduce your fees. Providing clean, sorted, categorised information could reduce your annual fee by up to 50%. 4. Not all accountants are created equal Some accountants are tax planning gurus Others may be experts in business structuring. However, no accountant is going to know the answer to all your questions (even though they might pretend to). If your accountant tells you something you don’t quite like, such as the need to pay a big tax bill, don’t be afraid to get a second opinion. 5. Your accountant doesn’t prepare your accounts If your affairs are simple, junior staff members will likely do the 90% of your work, while your accountant does little more than reply to your emails and phone calls. This is especially true with larger accountancy firms. If this is the case you’re probably paying higher fees than necessary. Get a quote from a smaller firm – you might be surprised at the fee difference.     Want to know more? Colour Accounting™ is our financial literacy course.  Click here to secure your place. [traininglist slug=”colour-accounting-normal”]  ]]>