The Worst Accounting Mistakes We’ve Seen.
Think you don’t need an accountant? While the tax guy at the shopping centre is pretty cheap, he may cost you more than you realise.
Nathan has seen plenty of people get into trouble because they didn’t have a good accountant. Here are some foolish mistakes he’s seen when it comes to accounting.
A couple of hundred saved became tens of thousands lost.
Nathan has seen people lose tens of thousands in tax deductions because they thought they could do their own tax.
While it meant they didn’t have to pay for an accountant, it also meant they paid more tax than they needed to – which was great for the tax department, but not so great for the tax payer.
The tax man wasn’t impressed.
In contrast to those who didn’t claim everything they could have, Nathan has seen people get in trouble for claiming things they probably shouldn’t have.
Anyone who has dealt with the tax department before knows that they mean business – and they don’t take lightly to those who claim things they shouldn’t.
Money was wasted on unneeded structures.
Many foolish mistakes get made from not doing proper research. Nathan says there are plenty of people out there who set up trusts and corporate structures when they didn’t really need to.
Then, there are also plenty of people out there who would benefit from such things but have never set them up.
Decisions were made based on limited knowledge.
A lot of people go through life making decisions based on the little bit of knowledge they have picked up over the years.
But following the same habits and perception you have always followed may prevent you from reaching your goals.
In order to become wealthy, you need to follow the habits of a wealthy person.
Having a good idea of where you are and where you want to be, as well as what tools you need to use to get you there, will help you decide what type of financial structuring you need.
But, you also need to have the right team of experts helping you. They are the ones who have spent years studying their craft and gaining expertise in different areas.
Having clarity around your journey and working out where your accountant and financial planner fit into this will give you a good picture of whether you need one structure, ten structures, or none.
Nathan says, he has seen people get locked out of the market for 12 months to two years because they were given bad advice from an accountant, not understanding how the person they wanted to become needed to act in order to get there.
So, if you are feeling a tad foolish after reading this, it’s time to let go of those old habits and think like a wealthy person. How many multi-millionaires out there get their tax done by that guy at the shopping centre for $49?
Spend some time and money on a good accountant – it may end up being the best investment you make.
Have you ever gotten in trouble with the tax department after making a mistake on your tax return? Please share your experiences in the comments section below.