Whether you are investing in property or buying your own home to live in, buying property in general brings many people to question whether they should be managing their tax affairs with the help of an accountant. It’s a great question to ask at any stage of your investment journey, so we discuss below why we believe it’s in most peoples’ best interests to work with an accountant. We also discuss what you should be looking for in a good accountant.
In our experience, there are a number of reasons for working with a great accountant or tax adviser:
1. Lower tax liability – Good accountants almost always reduce the amount of tax you owe for the simple reason they know a lot more about tax than the broader population and are able to leverage this knowledge to your advantage.
2. Time saving – Doing your own tax takes a significant amount of time. And if you put a value on that time, in most peoples’ cases it will be time poorly spent.
3. Lowers the risk of problems with the ATO – With the ATO increasingly focused on reducing tax calculation errors which result in lower tax payments, working with an accountant provides you with peace of mind that your risk of ATO problems is lower.
4. Allows you to focus on your own business – By focusing on your own job or business rather than your tax affairs you are likely to be in a stronger mind-set for success.
So you’ve made the decision to work with a great accountant, the next question is what to look for in an accountant. Here’s our list of what to look for:
- Qualifications – We recommend working with a certified or chartered accountant;
- Relevant expertise – If you are focused on property investment, find an accountant who works extensively in this space, and who has many successful clents;
- Referrals – Utilising referrals in your networks is often the best way to find a great accountant;
- Positive online reviews – Whilst less reliable than referrals, online reviews can be helpful.
Landen’s Director Jim Dionysatos advises clients to work with people they trust:
‘In our experience, the most successful property investors and buyers in general are those you have trusted professionals helping them. But it’s not enough to be working with a great accountant in managing your tax affairs. You’ll have the greatest success if you are working with a great accountant who you like and trust. Once you are in this position, you have a significant advantage over the rest of the market.’
