It’s time to starting thinking about getting all your receipts for expenses and donations, Invoices, car log book and other information ready to drop into the accountant. If you’re like most of us that will mean pulling all the fuel receipts out of the car glove box and going through the infamous drawer in the kitchen where we have thrown all the paperwork collected during the year. Oh and the bank statements… have you noticed there is always one page missing!
On the other hand there are also clients who are organised. Everything is kept in a folder in order or the computer Software is reconciled to the bank account and is accompanied by the relevant paperwork to make the accountants job less time consuming. So do these organised people pay lower fees? For more complex tax returns, yes definitely! There is an added advantage to reviewing your records and you are less likely to overlook an important deduction.
There are a number of methods used by tax professionals to set prices. Including; set fees, value based fees or most commonly an hourly rate for time spent preparing the return. Providing your records in an organised and summarised manner will assist the accountant in completing the return more efficiently and should help in reducing your fees.
So, a few suggestions;
• If you have a pile of expense receipts, provide them accompanied with a summary.
• Ensure all your bank statements are included.
• Provide a summary all income and expenses and attach relevant documentation.
• Ensure your cash book or accounting software is reconciled to your bank account.
• If you have any personal insurance or have made super contributions provide copies of renewal or contribution notices.
• Collate all medical expenses and provide a summary.
To assist you, your accountant should be able to provide you with a checklist that fits your circumstances. Or when you visit your accountant ask them to review your records and entitlements and tell you if anything is missing. The Tax Office website also has a large range of occupations with their allowable deductions and substantiation rules at www.ato.gov.au. (Do a search of your occupation) Providing the right information on a timely basis should lead to lower costs and a faster turnaround time.
When you visit your accountant, also ask how they determine prices and what they estimate your tax preparation service might cost. However, because of the set fee or per-hourly rate, it may be impractical for an accountant to provide you with an accurate price quote, therefore ask for a likely price range.
Best Wishes for the tax season!
