Hi Everybody,
I was posed a question recently. I felt I couldn’t answer the question properly as it was too broad. Property investors come in all shapes and sizes from mum & dad retirees to building magnates.
In trying to answer the question I thought I would go to the source.
Q: As a property investor, what do you want out of your accountant?
The ideas that where bandied around created quite a list, but what matters to you personally?
- I just want my income tax return completed
- I just want my Business Activity Statements (BAS) completed and my income tax return completed
- I just want general tax advice
- I want specific deal by deal tax advice
- I want regular quarterly financial statements
- I want regular monthly financial statements
- I want ad hoc financial statements for the bank
- I want to ask my accountant questions over the phone
- I want to ask my accountant questions by email
- I want my accountant to explain my taxes to me
- I just want my accountant to make it all go away with minimal fuss
- I want my accountant to help me develop ideas to improve returns and or cut costs
- I want my accountant to review deals and help me manage risks
- I want my accountant to help me protect my assets and setup new entities such as companies and trusts
- I want my accountant to understand my money problems and help me find solutions
- I want my accountant to help me determine how much cash I need for a deal
- I want my accountant to work with my bank/mortgage broker
- I want my accountant to help me work out negative gearing tax benefits
- I want regular meetings to discuss progress and issue with my accountant
- I just want my accountant to get me the biggest tax refund
- I just want my accountant to keep my tax bill as low as possible
- I want my accountant to help me tell if a deal is good or bad
- I want my accountant to help me determine how much a project will cost
- I want my accountant to help me determine how much profit a project will make
- I just want my accountants fees to be as low as possible
- I want my accountant’s fees to be fixed upfront
- I want my accountant to charge by the hour
- Other ???
I really appreciate your feedback, and I look forward to participating in these forums in future.
21 – minimise tax is number 1 for me.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
20). I always get a refund ATM. Just depends on how big ATM.
My accountant needs to be property savvy. He/she needs to own property (a LOT) and know all the deductions I'm entitled to and how to get them.
11) of course,
12)yes
13) yes+ info on structuring (trusts etc).
Early this year I set out to get my own accountant for my businesses and portfolio. For me, number 1 and number 21 were major factors for me. I didn't want the hassle of dealing with the accounting (which bored me and I was not good at), and I wanted to minimise tax as much as possible
Catalyst wrote:20).
My accountant needs to be property savvy. He/she needs to own property (a LOT) and know all the deductions I'm entitled to and how to get them.It's interesting, I've been seeing a bit of this lately. I'd argue a good accountant should know the deductions available whether they own property or not.
Neil Armstrong didn't demand that the engineers who built Apollo 11 had all been to the moon.
Dan i agree to a certain extent but then would you want to be taught to fly by a pilot who had only read the manual.
I get so many clients say a Broker sat down with them told them how they could pay their home loan off in 6 years with a super duper wealth reduction plan for only $3500 fee and buy 4 over priced investment properties through their marketing dept at the same time.
When they ask the Broker how many properties he owns he answers ' Well i am still saving up for my deposit on my PPOR because i need to pay off my credit card and car loan first' it hardly fills you with inspiration that he lives by his / her own advice.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
Agree with what you're saying, and the client in your example is entitled to ask, "If the strategy is so good, why aren't you doing it'.
With tax advice, I think a good accountant should know the possible deductions regardless of whether they are in investor or not.
However with other advice that an accountant may be asked, it does help to have some practical experience. Just thinking about it now, I have been asked about PM fees, areas to invest / avoid, buy in what name, etc.
I guess it gets back to the question of what the client wants from their accountant. .
I agree the above, but it is very hard to find a great accountant in property field !
I changed my tax accountant 3 times already !
either they don't know what they are doing ! ( be warned many qualified accountant out there has no idea what they are doing except charging excessive fee) or they just don't have expertise in property field.
any recommendation for a great accountant really understand property and geuniely wants assist investors profolio and money position.
Taylor
elisey wrote:any recommendation for a great accountant really understand property and geuniely wants assist investors profolio and money position.
Taylor
Where are you located Taylor?
hi Catalyst,
I totally agreed that the accountant should also own the property and being a property investor themselves ( he/she must own a lot of property ) this is the only want to demostrate his/her ability to assist their clients and justifiable to their fee charge !
CPA or CA or any sort of qaulification is secondly than being a property investor with muliple investment property.
Personally, i don't think seating in the exam and pass the exams, doing qualification is the way to demostrate the ability to assist clients in the property investment journey.
Taylor
hi Dan42, I am based in Sydney
be honest with you, I am a porfolio accountant, I see so many so called qaulified tax accountant with no idea what they are doing !! and they holding CPA or CA qualifcation !!
I didn't further my study to become CPA or CA after study accounting degree in university; however, I can tell straight away what my tax accountants did for me. Many times I spotted error in the tax return they've done for me. Hence, i changed tax accountant for 3 times already.
from my personally property investing journey, I think i've learnt so many things which many of the CPA/CA qualified don't know !!
I am not the expert in property tax field. However, I am a property investor.
I think a savvy propert investor, should prepare to face up the challenage to employe the "right" type of expert in their team. ( no just the qualification which just do the time and pass the exams)
Hi folks,
This is my first time using this website. I want to make friends with you guys who's got same mindset. I mean property investment and development. I'm holding four properties and developed a dual occupancy. Now I feel it's too much. I need off load one property.
Thanks to all for your comments, much appreciated.
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