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Is my accountant over-complicating matters?

Hi guys,

After sitting through a meeting with my accountant yesterday I’m really concerned that he is viewing my tiny, straightforward business as a major corporation!

He has talked me into buying QuickBooks, which meant buying a second computer (Mac doesn’t support QuickBooks so I needed to purchase a pc) plus the QB software, which was around $2000 all up.

I’ve now heard from friends that everything could have easily been done on a spreadsheet.

Then yesterday I was listening to my accountant and part-time assistant discussing my BAS statements, which used to take me around two hours and now sound as if they’re going to take a whole day!

I’m all for getting up to date but am really concerned that the time and money that is going into all this is becoming ludicrous.

I’m a couple of years behind on my tax because I was a full-time carer for my Mum and working from home and not receiving a pension.. and the last couple of years of her life were so demanding I barely had time to work let alone do my tax.

I’m now really keen to get up to date but listening to my part-time assistant say what a massive job it’s going to be is really disturbing me.

Incidentally, my assistant has only been with me for around three months.. Prior to that I sole trader, with no assistant.

Do you think I should be running this by another accountant?

Any advice would be most appreciated.

With thanks,
PJF

Tags: BAS, Tax, accounts

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Replies to This Discussion

Permalink Reply by Miffy on August 14, 2008 at 12:41pm

Accountants have a habit of overcomplicating things - they do get paid by the hour! The tax system doesn't help, but it doesn't need to be too complicated for you. Although by the sound of things it is...

You'll probably be up for a bit extra in time and money to get your tax affairs in order again, but you certainly don't need QuickBooks or any other accounting software for your business if you're only keeping track of payments from a few people and miscellaneous outgoings. Your friends are right - a simple spreadsheet will do the trick.

One thing I can say - don't let your part-time assistant determine whether or not it's a big job. You pay her, so you set the parameters. Perhaps you should get someone else to do this, or do it yourself as you did in the past. Your BASs shouldn't take a day, not unless you have a major business going!

You need to take a step back and look at what needs to be done with your tax. Then you can work out the best way forward - new accountant, doing more yourself, not using your assistant for this task, etc.