Auckland Tax Accountant – Reduce Your Taxes
No-one likes paying taxes but we all face them so it makes sense to try to keep our tax bills as low as possible. You could try to learn tax accounting yourself but as tax laws change every year, that is a tough and very complex job. So the better way is to find an Auckland tax accountant who can help with your tax returns.
It seems an obvious statement to make, hiring an accountant but there are so many accountants in your locality so which one should you choose. Is there any guidance on choosing a tax accountant that would suit you?
Here are four questions you can ask to help you make the decision.
1 Are There Specific Types Of Clients You Work With?
You should know that not all accountants are the same. This surprises some people as we all live with the same tax laws. However, some accounting firms specialise in working with specific types of clients. The speciality can be in an industry like car repair companies or it may be the size of client such as businesses up to $50m sales or solo entrepreneurs.
An advantage of using an accountant that works in your industry is that they understand the nuances that apply in your sector. They also get to understand the language of your business which means you can easily explain to them what has been happening in your company.
2 Specialist Services
While most tax accounting relates to the most common issues which are income, expenses and filing tax returns, other accountants choose to specialise in particular aspects of tax. A common area for such focus is trust taxation and administration.
Trust accounting is an increasingly important area with more people choosing to own rental property or to go into business. In both of these cases, it is a good idea to protect your investment in case another aspect of your life faces difficulties which could adversely affect those investments.
If a trust is something you think might be appropriate for you, check that your accountant is skilled in this area.
3 Billing For An Auckland Tax Accountants
Accountants have different ways of charging their clients. Some use an hourly rate while others charge a fixed fee for each project. You also need to ask for the fees for each service before you commit to the firm undertaking any work for you. You do not want any nasty surprises and a big bill.
If you are switching to a new accountant, give them a copy of your previous accounts so they can get a clear understanding of the work you will require.
4 What Accounting Packages Do They Use?
These days almost all accountants work with a computer-based accounting package. Some of those are located on their servers while others are cloud-based. This can make a difference to you in a few ways especially if you manage your day-to-day bookkeeping.
If they do not use an accounting system you are familiar with then you might have to learn how to use their system. Conversely your data may not be easy to upload into their system.
Also, if either their accounting package or yours is located on a local desktop, then they will not be able to easily log-in to help with any issues you may have. An Internet based bookkeeping package is more flexible and also often cheaper to run.
There are many factors to take into consideration before you take on an accountant. The above are four key questions to ask. But perhaps the most important factor in choosing a tax accountant is, do you get on with them as a person?