Whilst AIM can be used by businesses who don’t have a tax 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.
We expect that regularly updating records during the year will mean a smaller year-end workload for both businesses and their advisors which will result in less time spent on compliance. We would also expect that as the tax treatment of an income or expense is considered closer when it was incurred and the rationale for its treatment can be made accurately rather than on a conservative basis due to a lack of information at year end.
We also expect that businesses will have more cashflow certainty throughout the year as their tax liability will be known in advance. This will assist with general business advice during the year.
“I want my tax to just be part of my everyday business system. I want to know what I need to pay to Inland Revenue and what profit belongs to me so I can make plans. I want to be rid of the big end of year surprise”.
“We chose our accountant because he offered regular advisory relationship. I pay a set fee and can email or call him anytime I like. They prepare my GST returns in the software and email me once a month with questions and how much to pay. It’s simple and convenient”.
“I do my returns myself so it’s not really a cost issue for me, more of a time saved win”.
“ As an advisor, I can see this working for some of my clients but others prefer to only contact me at the end of the year”.
“I would prefer to work this way with my clients, so I can focus more on advice that helps their business grow rather than just doing their compliance work”.