Accountant charge

[perfect]

How much does a tax return for a company cost?

I have recently set up a company, and in June I went to my accountant with a summary of the expenses (all typed up in excel). He took a few weeks to get it done, to check up a few things - he wasnt sure if i could claim them. He sat with my for about 40 minutes, and told me there is another client waiting after me, and said he will finish the tax in a few days. Then in 2 weeks, I post I got the company tax claim form typed up, a company financial accounts report, and a bill of $700.

Is that reasonable for a tax return for a co thats only 4 mths old with very little transactions (mostly expenses)?

I didnt give him a shoebox with receipts in it. And he also said I should buy a MOYB or Quicken to make it easier for him in the future.
BUt I already typed it all up in groups (eg, Petrol, Office Supply, Books, Groceries, etc) and left the summary with him. I mean, all the numbers are there ready for him, all he needed to do was to fill in the form.....
and the things I suggested we can claim (the ones he said he wasnt sure), he ended up agreeing with me that i can claim them.

[Kristine..]

Hi Perfect

Last year we sumbitted Four personal tax returns including company and private vehicles and 10 properties, One company return, One ASIC return, one extension of time, checking the BAS, etc for $1925 including GST.

When my Company was registered the previous year I was charged $100 for doing the establishment.

I have used the services of my beloved caridgan wearing CPA since 1989 and I can ring him or his staff at any time and I am never charged for advice.

I have all summaries prepared but do not do the depreciation.

I have full confidence in John. He is very moderate in his approach. What he doesn't know he finds out.

I am happy to email contact details if you like.

Regards

Kristine

[geoffw]

I didnt give him a shoebox with receipts in it. And he also said I should buy a MOYB or Quicken to make it easier for him in the future.
BUt I already typed it all up in groups (eg, Petrol, Office Supply, Books, Groceries, etc) and left the summary with him. I mean, all the numbers are there ready for him, all he needed to do was to fill in the form...MYOB may well be a good investment- your accountant would have to either put all your entries into MYOB manually, or proigram your Excel spreadsheet.

It's been suggested that a bookkeeper (who costs perhaps $30 to $50 ph?) would be a good alternative to an accountant doing the same stuff at $100+ ph.and the things I suggested we can claim (the ones he said he wasnt sure), he ended up agreeing with me that i can claim them.You then need a property savvy accountant. Dale for instance.

[Queen Bee]

When I first started my business the accountant had to prepare accounts for only 6 months and that cost me about $600. I was originally doing the same as you - all in Excel. But they then have to input all that again into their own system.

The accountant's bill varies yearly but this year to do my company accounts for the year cost me $1650.00. It also cost me $1050 to do the accounts for my properties which are owned by another company. But because she was able to use the depreciation from the properties and offset it with my personal PAYE that I had paid, I am getting a $8,900 refund and my partner is getting $2,800 refund. I suppose it's all worth it then.

She too suggested that I get either MYOB or Quicken. I got Quicken (only because it's cheaper) but you can download MYOB off the internet for free, I just don't think it's the full version, I've looked at it and it seems to do all you need it to do. Quicken is much better than Excel because you can do reports and see where you are in your business at a particular time. You also can get it to only do reports for tax related expenses only (like over here bank charges you cannot claim GST) so you don't have to take things out as in Excel.

My friend has a book-keeper do her accounts for her business, but they are definately not as thorough, like if she's owned Family Support or anything she has to do all that herself. She also doesn't get a set of accounts typed up, so she can't show it to the bank if she needs finance etc. The book-keeper basically just checks what she has done to make sure it's OK for IRD.

It's not as comprehensive - so it just depends I suppose on what you need. But if you've got properties - than you're going to need them done properly because the bank will want to see them.

QB :p

[rodimus]

WHat does MYOB or Quicken do?

Do they put the expenses into their tax categories like D5, D7 etc?

[Queen Bee]

Don't know what D5 or D7 are - different in NZ but my accountant does an

Analysis of Gross Profit
Statement of Financial Performance
this includes:
Sales
Cost of Sales

Less Expenses
Accountancy Fees
ACC Levies
Advertising
Bank Charges
Entertainment
Equipment Hire
General Expenses
Insurance
Motor Expenses
Printing & Stationery
Rent
Subscriptions
Communications
Directors Salaries
Sub-Contractors

Depreciation
Salaries

NET LOSS/PROFIT

Basically anything that I've claimed as an expense.

Statement of Financial Position as at xx/04
which includes current assets, less current liabilities, working capital, fixed assets, term liabilities, net value of assets, retained losses

Taxation Depreciation Schedules
Notes to the Financial Statements


Haven't fully checked out MYOB but apparently it's pretty comprehensive. Quicken will do your cashflows, expenses, (well that's all I use it for).

Cheers, QB