Most people in business avoid calling their accountant. It’s a bit like going to the Dentist – you don’t know what they’re going to say but you presume that it’s not what you want to hear and you always get a big bill for the privilege. However, like going to the dentist, not checking with your accountant before making business decisions can often lead to more trouble down the line. Your accountant can often save you money by structuring things efficiently or avoiding pitfalls. It’s usually easier to start out the right way than trying to fix it after the fact.
Here are some things that should always prompt you to call your accountant if you are in business:
- Buying a vehicle. If you’re vehicle with have any business use at all always check with your accountant BEFORE you buy. There are two ways to claim vehicle expenses – one of them leads to a Standby Charge and one doesn’t. Your accountant will be able to advise you which one is the best in your unique case.
- Hiring your first staff member or independent contractor. This is an area that people often get in trouble with – what your friend does in his business may not be all that legal or suitable to your situation (and why would you take legal or accounting advice from someone with no qualifications in that area anyway?). Your accountant can tell you what your obligations are and what the implications of each approach are for you.
- Borrowing Money. Not all debt is equal. Some interest can be deducted for tax purposes and some can’t. Talking to your accountant before you borrow could make the difference.
- Buying an Investment Property. Your accountant can help you set up the right legal structure to hold investment property and make it as tax efficient as possible.
- Buying or starting out in business. Should go without saying.
At Fuel we would much rather our clients call us before making a decision than after. We believe that it saves us a headache at tax time, and can save you money. So we don’t charge our clients for brief phone calls or emails! That’s right – no more worrying about whether you’ll get billed for that “quick” call or email. If we think that more time is needed we’ll give you an estimate of the cost up front. How many accountants do that?
If you’re not a client of Fuel Accounting, why not call us for a free consultation right now. We’d love to help your business be more successful.