Gathering your tax return information each year end to pass to your accountant may seem like the most tedious chore, but did you know that providing your accountant with concise and correct records rather than a shoebox full of receipts could save you on your accounting fees each year?
Whether you are a property investor, a sole trader or an employee with simpler tax affairs, there are ways you could help reduce the bill you receive from your accountant. Most accountants’ charges are based on the time spent preparing the work, so anything you can do to reduce their preparation time will save you on your bill. For example, if you own a rental property you could provide the agent’s annual summary to your accountant rather than 12 monthly statements. Or, if self-managed, a summary of all income and expenses for the year using a BSN & Co provided template or format. If you are claiming work related deductions, summarise your expenses into categories such as subscriptions, union fees, printing, stationery etc. Be sure to keep receipts or invoices for your deductions in the event of Tax Office scrutiny.
For business clients maintaining their records on software such as MYOB and Xero, there are ways to shave some costs too. Ensuring the file is in the correct financial year, bank accounts are correctly reconciled and sending the files to the accountant in the appropriate format are all straightforward so this will save time and cost, as will prompt attention to any queries which may arise.