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Posted By Topic: How much do you pay your accountant (Sole traders)

SparkyJoe
Sep 26 2018 13:54

Hello

Could someone recommend an accountant for a sole trader? Im based in wellington (Not that it really matters i guess)

Thanks,
   

captain
Sep 28 2018 09:47

I used \'Ask away\' in Woodville. Couldn\'t fault their service, experience or fee.
https://www.askawayaccounting.co.nz/
   

rarrar
Sep 28 2018 10:32

more importantly how do you know they are doing a good job for you?
   

AlecK
Sep 28 2018 12:26

My main advice would be to not be a \"sole trader\".
It took me a while to work out that I was way better off setting up a partnership (my wife and me) and then being an employee of the partnership.
We did this when Kiwisaver was introduced, as sole traders couldn\'t get the givt contributions.
But other advantages were no longer having to do provisional tax; and if i break a leg I get 80% of my salary, rather than 80% of the SFA profit that is common for sole traders.
Only downside is doing PAYE.
So now the business runs at a loss, and some of that loss can be used to claw back some of the PAYE my wife pays on her other income.

What annoyed me was that my accountant back then never told us about how the different structure might be better for us; just went through the motions every year and grizzled about \"excessive\" stick levels.
   

rarrar
Sep 28 2018 19:58

that\'s what pisses me off, i can see a good and bad tradies work, but i can\'t see what these people do is good or bad.
   

evanh
Sep 28 2018 20:33

Maybe accountants have practising licences too. :)

   

rarrar
Sep 28 2018 20:42

given that i see non compliant electrical work on an almost daily basis that instills no confidence in me at all.
   

medistat
Sep 29 2018 08:52

My accountant charges a fkat 1% of turnover as a Sole Trader.

More importantly, how much credibility does each particular accountant bring to the equation and does that credibility factor reduce the chances of a random IR audit? I see it as an insurance policy and a cheaper accountant may not have the respect of IR and may thus bring an IR audit upon you.