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Relationship with tax advisor

Will AIM change the way you work with your accountant?

Whilst AIM can be used by businesses who don’t have an advisor, it has the possibly to strengthen the relationship between the advisor and their client as it encourages regular communication.

Cloud based accounting software means both the business and their tax advisor can access the accounts anytime from anywhere. Businesses are able to have a remote yet regular relationship with their advisors, and both can regularly and easily update records.

Do you think adopting AIM would change the way businesses and their tax advisors interact?

Comments

Vivienne
I would like to be able to complete my own tax return, including calculating depreciation etc as my accountancy fees are excessive for the size of my business. Would prefer to use the accountant as an advisor not a tax return generator as I do all the recording, coding etc for myself via accounting software anyway.

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2 months ago
Kylie Cronin
Hi Vivienne, just thought you'd like to know that you can do this if you're comfortable with the depreciation calculations and that your knowledge of tax issues and updates will cover your business activities. One benefit though of using an accountant is that you get until the 31st of March to file the return, whereas if you are not linked to a tax agent you get until early July (I think). I can't stress enough that using an accountant will almost always save you money in the long run, as there are a large number of tax issues that could apply, and it's not always the same every year (as an example just to stay registered with CAANZ we are required to attend 20 hours a year of registered courses just to keep up to date with the many changes in tax law). Have you tried asking your accountant how they could reduce your fees? We're usually very open to having that discussion, and sometimes there are processes that can be changed to help reduce the time spent on your job.

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2 months ago
David Downer
Are you based in Wellington? Sounds like you know what you are talking about might be helpful.

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2 months ago
Frank Tyson
Kylie and Vivienne I do my own using MYOB ACCOUNT RIGHT with BANK FEEDS and ONLINE SUPPORT Being on Super I also run 3 other small Sole Charge Businesses and have over several years refined my Account Codes to cover all information into one file called ENTERPRISES reason being is that on some occassions the Super Money is invested into the businesses Sounds convoluted but works I also run all my operations through two accounts and all transactions are handled online via VISA DEBIT or DIRECT DEBIT transactions for other items are handled via EFTPOS Dont use cheques and vary seldom pay cash for anything that way when I transfer items from the BANK FEEDS to the accompaning Memo is techincally my reciept and Payments or income can be split as and when required As for things like Depreciation the Online Calculator at IRD works fine once you get the hang of it If I recieve CASH for activities I have a CASHDRAW in MYOB and deposit money into the bank and transfer it to that account for my personal drawings Biggest Issue I have is the IR10 and transfering information from MYOB but have sorted it by creating a template from the ONLINE FORM and saving my reports from MYOB and transfering info Dont use a TAX ADVISOR OR ACCOUNTANT my INCOME & EXPENDITURE dont justify the expense I have left a comment elsewhere here suggesting that ACCOUNTING FIRMS and IRD need to get their heads together to get their heads together to dovetail the software so to simplify it My system works fine completed my tax online on 5th May had my refund on the 19th No need to wait till 7th July :)

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1 month ago
Mark Jones
i dont think it will change anything, we only use accountants as we dont want to get penalties for missing something, IRD are not flexible enough and with so many different tax issues to look out for, even though i use software i would not risk on using an accountant. overhaul the tax system all together i say.

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2 months ago
Chris Davidson
The relationship will continue unchanged

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2 months ago
David Compton
The relationship will reflect the degree of working available in the accounting software.

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2 months ago
Sandra Kraakman
Being able to access our accounts when we want to and not have to rely on person to person contact would be beneficial to us. However, this will put a lot of pressure on accountants to be up to date and accurate with their figures.

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2 months ago
Maree
Yes, many accountants are not really assisting businesses at all, just doing bookkeeping at expensive hourly rates. If small business owners would invest in their own education so they are able to keep their financials up to date themselves and just use their accountant in an advisory role they will get so much more for their money.

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2 months ago
Margaret Baker
Hi Cloud computing is doing that already. Just have an issue for the really small or startup where software cost is a prohibitive barrier to them joining in this change for the better.

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2 months ago
Ross Williamson
Yes, for me it could mean no need for a accountant, if it works on my tax during the year ?

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2 months ago
Frank Tyson
With the increased growth in companies/individuals offering to give advise or complete individuals tax returns one needs to be extremely careful for numerous reasons 1 Ultimately in the end we the Tax Payer are liable for any mistakes and there is no responsibility on their part for any errors or ommissons and IRD will not take action against them 2 Unlike Proffessional Accountants some have no knowledge of accounting 3 If you keep accurate records (which would pass an IRD Audit) and decide to use any advisor or consultant only give them copies of documentation( including Bank Statements) never origionals 4 Before making any decisions on who to chose examine you personal/business details and prepare a set of questions which relate to your organisation: a How long have they been in business b What do they now about the various items like Deductible Expenses, Depreciation Income etc c Do they require online access to your bank account and IRD Number as your Agent d Do they have a trust account for their clients refunds and how much do they charge (either a % or by the Hr) For me c and d are important because if they either need access online to your IRD Number/Bank Account then once you sign it over you lose personal access and could be a victim of Identity Theft If they dont have a trust account then any refund can disappear into their own business and you will not see it Not Only IRD but the Banks in general need to get on top of this My suggestion would be that people offering Tax Advise should be registered like Finance Companies etc and subject to audit and even would go as far as making them prove they have a Trust Account and pay a large bond Feel Free to comment

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1 month ago
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