Accountants - What they're good for?

From: Dale Gatherum-Goss


G'day!

In the last few days we've had a couple of interesting comments about accountants, all of which I would agree with.

However, it made me stop and think about why we get so little advice from our accountants and without defending them (especially since I am one of them!!) I thought I'd explain why.

Accountants are not trained in investing and therefore you probably know more than a room full of accountants (which is my personal idea of a nightmare!!)

Accountants are paid to protect you from yourself. That is, to be that little voice of conscience reminding you that what you might think about doing IS risky and may cost you more than you can afford.

Accountants are more interested in protecting their own bum than looking after you. That is, if you are given conservative advice and you choose to ignore it, you cannot sue the accountant if you lose the lot because his/her advice led you to believe that you would be fine.

So, what does this mean?

It means that you should get your investment advice from mentors, and fellow investors who have done what you are looking to do. It also means that you should engage an accountant to help you find the best way of doing it to protect you, and your assets, and to make the tax system work for you.

Have fun and torment an accountant if you get the chance!

Dale
 
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Reply: 1
From: Robert Forward


Hi Dale

I can completely agree with your post there.

Myself, I come up with new ventures and investments strategies then ask my accountant the best way to structure and implement it to be firstly protective of other investments, tax effective etc. My accountant is actually really good in the fact he can see what I do and makes suggestions on different paths that could be taken to reach the end goal.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 2
From: Sergey Golovin


Thanks Dale, I agree -

1. Every time I do my tax return my accountant always ask me - Are you sure? And you do have all receipts and all supportive documents for all that what do you? And he means it too.
Even after I leave his office I still do hear that voice in my head. Is he that bad? Not at all, in fact he is quite clever and quite sarcastic, good to talk to. I guess he is just trying to remind to us all that it is our responsibility to do it properly.

2. In regards to mentors it is true too. The accountant can't tell you what sort of toy to buy but probably can tell you how to minimise the damage.
I was always wondering what does it mean when people say talk to your accountant? Poor accountant probably does not have clue what exactly do you want from your life, unless he is specialising in properties. This why, I do now say - talk to the professionals (could be anyone including your mentors).

Another good one from Dale.

Serge.
 
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Reply: 3
From: Geoff Whitfield


Dale,

My advice from The Wife has been that you need to find an accountant who fits in with what you want to achieve (Have I got this right TW??)

If your accountant does that, then that's fine. But even then, there comes a time when you outgrow that advice- maybe you're starting to get into big deals. Then it's time to grow into a new accountant.

Grow, learn, and change if you need.
 
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Reply: 3.1
From: Dale Gatherum-Goss


Hi Geoff!

I agree with TW completely. We all change in our outlook and our needs and at then the advisors we hired at one stage in life no longer meet those new needs.

A good lesson to learn.

Have fun

Dale
 
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Reply: 3.1.1
From: Michael Croft


Accountants are like tools (sorry Dale), there is the multi-purpose tool that does a lot of things reasonably well (bit like a Swiss army knife/Leatherman), then there are those specialist tools that make the job easier like a plumbers electric eel (offshore specialist).

I keep a good Swiss army knife/Leatherman in my pocket and hire the expensive specialist tools as I need them. I don't use my Swiss army knife to clear blocked drains and some tools wear out.

Michael Croft
 
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Reply: 3.1.1.1
From: The Wife


Agree agree agree

TW
 
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Reply: 3.1.1.2
From: Dale Gatherum-Goss


Hi Michael!

I love it!!!! I've been called many things in the past, and a tool is one of them, but, I don't think they meant it as kindly as you did.

Thanks for that, it has made my morning!!

Dale
 
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Reply: 3.1.1.2.1
From: Owen .


I was thinking the same thing. That's about the nicest insult I've ever heard. LMAO.

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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