F.A.Q
Why are accountants so boring? And why can’t I understand what they are talking about?
Unfortunately accountants have no one else but themselves to blame for being stereotyped as being boring and at times difficult or impossible to understand. A large portion of most accountants work is the summarising and restatement of historic transactions and while history can be a good indicator of things to come, it’s not terribly exciting.
Accounting is littered with legal and accounting jargon which accountants like to use when they want to look like experts. What these supposed accounting experts do not realise, is that you probably do not understand the jargon and if you are confused then they have not done their job properly.
Luckily, stereotypes are not the rule and there are exceptions. There are accountants who are not boring and who you can understand and the team at Whutupōro are pleased to be such accountants. When we discuss your situation with you we tell you like it is in straight talking language.
Accounting is littered with legal and accounting jargon which accountants like to use when they want to look like experts. What these supposed accounting experts do not realise, is that you probably do not understand the jargon and if you are confused then they have not done their job properly.
Luckily, stereotypes are not the rule and there are exceptions. There are accountants who are not boring and who you can understand and the team at Whutupōro are pleased to be such accountants. When we discuss your situation with you we tell you like it is in straight talking language.
What’s the difference between accountants, Chartered Accountants, bookkeepers and tax agents?
Chartered Accountants are members of Chartered Accountants Australia New Zealand (CAANZ). They have studied for several years to achieve their qualification and are required to undertake ongoing professional development. They are bound by a code of ethics and professional standards, and hold a professional qualification from NZ that is internationally recognised. Chartered Accountants are like the Ferrari’s of this world in that they are superior to Bookkeepers or tax agents who could be described as being a Lada in that they can be unreliable and not of the quality a business needs.
Some Chartered Accountants hold Certificates of Public Practice which means they are qualified to offer accounting services to the public and are subject to a review once every three years by CAANZ.
Anyone can be an Accountant or bookkeeper. If you decide to use an accountant or bookkeeper, you should check their qualifications and experience because they could range from nothing to as good as a Chartered Accountant.
A Tax Agent is someone who is registered with the Inland Revenue Department to prepare and lodge income tax returns for taxpayers. Being on a tax agency list means you have 365 days in which to prepare and lodge your income tax return. Taxpayers without tax agents will only have 98 days. The IRD sets lodgement targets which must be met by the agent to maintain their agency listing. Tax agents can be anyone – accountants, Chartered Accountants, bookkeepers ....
Some Chartered Accountants hold Certificates of Public Practice which means they are qualified to offer accounting services to the public and are subject to a review once every three years by CAANZ.
Anyone can be an Accountant or bookkeeper. If you decide to use an accountant or bookkeeper, you should check their qualifications and experience because they could range from nothing to as good as a Chartered Accountant.
A Tax Agent is someone who is registered with the Inland Revenue Department to prepare and lodge income tax returns for taxpayers. Being on a tax agency list means you have 365 days in which to prepare and lodge your income tax return. Taxpayers without tax agents will only have 98 days. The IRD sets lodgement targets which must be met by the agent to maintain their agency listing. Tax agents can be anyone – accountants, Chartered Accountants, bookkeepers ....
Since accountants are all the same, is it best to choose one on price?
Just like everything else in life, you get what you pay for. Consider a recent client who paid $550 for his financial statements but paid just over $15,000 in tax. Had he paid for a quality service he would have had tax of $10,980 to pay. He thought he was getting a great service until we pointed out the mistakes. He is now a client and knows that our fees represent excellent value for service.
A very low price can be a good indicator your accountant is not spending money on training courses to keep up to date with changes affecting business, or they are not employing good quality staff but instead are using junior staff who know or do very little, or they spend little on systems to ensure deadlines are kept, or have little money to afford Professional Indemnity Insurance, or spend little on technology losing any advantage of cost savings associated with modern information technology, or worst of all they take short cuts which will cost you more in the long term.
When looking for a new accountant, low prices are sometimes offered as an incentive to get a new client and their work. It is not uncommon that once the honeymoon period is over the accountant then starts charging ‘normal’ rates.
When it comes to choosing the right accountant for you, it should come down to the value you get for your money and not whether an accountant is the cheapest or not.
A very low price can be a good indicator your accountant is not spending money on training courses to keep up to date with changes affecting business, or they are not employing good quality staff but instead are using junior staff who know or do very little, or they spend little on systems to ensure deadlines are kept, or have little money to afford Professional Indemnity Insurance, or spend little on technology losing any advantage of cost savings associated with modern information technology, or worst of all they take short cuts which will cost you more in the long term.
When looking for a new accountant, low prices are sometimes offered as an incentive to get a new client and their work. It is not uncommon that once the honeymoon period is over the accountant then starts charging ‘normal’ rates.
When it comes to choosing the right accountant for you, it should come down to the value you get for your money and not whether an accountant is the cheapest or not.
What should I be asking my accountant?
At the very least, your accountant should be able to:
Optional extras could include:
- Keep you on the right side of the IRD
- File an accurate tax return
- Minimise tax
- Avoid serious tax-related penalties
- Explain tax law and regulations clearly
- Know many ways to save taxes
- Reduce uncertainties
- Keep up to date with changes
- Save time
- Mention risks
- Assist business to make legitimate claims
- Avoid taking deductions that fall within any grey areas of tax law
Optional extras could include:
- Health checks on your business
- Bookkeeping
- Budgeting and forecasting
- Tax planning
- Valuations
- Succession planning
- General business advice
Why haven’t your accounting fees come down now that you are using accounting software?
Any output from accounting software is only as good as the information entered. We frequently find users of computer software use the wrong codes when entering transactions (e.g. GST coded on personal expenses, hire purchase payments coded to fixed assets, general expenses full of unknown entries, suspense accounts with transactions that need to be recoded …). When data has been coded to the wrong place, time must be spent correcting that data entry. Generally speaking, the use of a computer system doesn’t lead to cost savings until the software is being used properly.
Good accountants will offer to review your accounting software and provide you with recommendations so transactions are coded properly. As you use your accounting software better, the services offered by your accountant normally shift from that of compiling the data to providing advice on how to do better based on the data which means your accounting fees won’t necessarily decrease.
Good accountants will offer to review your accounting software and provide you with recommendations so transactions are coded properly. As you use your accounting software better, the services offered by your accountant normally shift from that of compiling the data to providing advice on how to do better based on the data which means your accounting fees won’t necessarily decrease.
You have found WHUTUPōRO to look after you and your business. What happens now?
Changing accountants is so incredibly easy. At Whutupōro we take care of everything including contacting the old accountant to request professional clearance and all relevant information and documents which we require. Out of courtesy, you may want to advise your previous accountant personally that you are changing (we have a draft Changing Accountant Notification letter you can use if you would like to tell them yourself).
Your old accountant is obliged to pass on the information required, provided professional clearance is given. Your old accountant should not refuse professional clearance on the basis of any fee dispute alone. Once clearance is given, we take care of notifying Inland Revenue and Companies Office of your change.
Your old accountant is obliged to pass on the information required, provided professional clearance is given. Your old accountant should not refuse professional clearance on the basis of any fee dispute alone. Once clearance is given, we take care of notifying Inland Revenue and Companies Office of your change.
SHOuLD i use accounting software?
There are a number of accounting and bookkeeping packages on the market. We recommend that before you commence using one that you consult with the Whutupōro team to determine the most suitable option for your business. Every business is different and we make our recommendations based on your needs. We offer a wide range of solutions including Xero and MYOB as well as our own TriTec reporting system.
Do I need to set up a company?
That is a very big question and there is not a straight forward yes or no to this question.
It will depend on your circumstances and we suggest you meet with our team to seek professional advice before going ahead and setting up a company so that you can make an informed decision.
It will depend on your circumstances and we suggest you meet with our team to seek professional advice before going ahead and setting up a company so that you can make an informed decision.
WILL YOU DEAL WITH INLAND REVENUE FOR ME?
Yes, That’s our job. We will put you on our tax agency which allows some time extensions on annual income tax returns.
As part of our service we will remind you of any IRD payment and return deadlines coming up, and we will deal with any issues that come up with the IRD.
We are more than happy to handle tax audits on your behalf (although that may be beyond the scope of your monthly arrangement so there may be additional fees). We can offer audit shield insurance which can assist with covering the costs of an audit.
As part of our service we will remind you of any IRD payment and return deadlines coming up, and we will deal with any issues that come up with the IRD.
We are more than happy to handle tax audits on your behalf (although that may be beyond the scope of your monthly arrangement so there may be additional fees). We can offer audit shield insurance which can assist with covering the costs of an audit.
How do you invoice and how do i pay?
Recurring charges are billed at the start of the month and due within 10 days. Other irregular charges are billed at the end of each month and due within 10 days.
We accept the following payment methods
We accept the following payment methods
- Online banking
- Credit Card
- Direct Debit
