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Jamie Mobbs currently has over 20 years experience in public practice. He believes in identifying what clients want from a business and working to get there through the right structure and using the most efficient systems.

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Jamie Mobbs

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07 3844 6960

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https://www.mobbsandcompany.com

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From bookkeepers and financial planners to tax accountants, financial services professionals have a great deal of responsibility on their shoulders. You are relying on them to do the right thing so you need more than gut instincts and referrals from friends to make sure this will be the case.


Here are some steps to make sure the people who handle your money will do the right thing by you.



“Trust but verify”


This is an old saying but a good one.


When you enlist the help of a professional financial services provider, take the time to check their qualifications and make sure they have relevant certifications.


For example, Tax Accountants in Australia should be registered tax agents. You can search the register here: https://www.tpb.gov.au/registrations_search to check if the agent you are working with is registered.



Be proactive with your finances


Requesting the support of a financial professional like an advisor, bookkeeper or tax accountant doesn’t mean you never have to check your bank accounts again.


In fact, it makes it even more important to keep an eye on your accounts.


It’s your responsibility to review your finances, double-check your statements and ensure money is coming in and going out the way you expect it to. An untrustworthy person will rely on your confidence in them (this is why they are called ‘con ‘artists) and may take advantage by siphoning off funds without you noticing.


Be ‘data literate’ and learn to speak the language of finance and you will be less likely to be taken advantage of by someone who you trust with your money.



Work closely with your financial services provider


These relationships shouldn’t be ‘set and forget’.


A reliable and trustworthy Tax Accountants, bookkeeper or other financial type should be in touch with you regularly to ask questions, go over your finances and give you ideas of how to form strategies that will help you maximise your income, minimise your tax and grow your wealth for the long term.


These professionals should have time for you and be equally able to answer queries you have about where your money is going, the details of your tax bill and your financial future. Ask lots of questions and don’t settle for being brushed off.


When you work closely with the people who handle your money, you will get to know them and get a feel for their honesty and code of ethics. If they are regularly late, don’t have answers and seem distracted, these could potentially be warning signs that they don’t take a genuine ‘customer first’ approach.



Work with deadlines


Things like tax time have deadlines and penalties if they are not adhered to. A trustworthy tax accountant or bookkeeper will keep you informed so you don’t end up missing these deadlines and ending up non-compliant in important areas.


Your service provider should also meet your deadlines. For example, if you have asked for a monthly profit and loss statement from your bookkeeper, it should show up on the agreed date.



Be aware of false promises


Nobody wants to pay too much tax but if you are earning an income you do have to pay some money to the Australian Tax Office.


Be wary of anyone who makes extreme promises about reducing your tax bill. A good accountant will leave no stone unturned when ensuring you aren’t paying too much tax. However, they will probably say no to a few of your requests and questions when it comes to tax minimisation. A ‘dodgy’ accountant is actually likely to be more cavalier in their approach.


If your taxes aren’t filed correctly, you can’t blame everything on your tax accountant because you have given final sign-off. Work with a professional who has a reputation for being thorough, helpful and knowledgeable, not a too-good-to-be-true miracle worker.



Look for consistency


If you are using accounting software like Xero and your bookkeeper and tax accountant have access, ensure the reports they share reflect the content of these platforms.


Generally speaking, information shouldn’t be shifted about when it comes to accounting. Figures should be neatly reconciled and the details for your tax return should be imported from your digital accounting platform, not manually entered into a spreadsheet.



Be careful with accounts and passwords


This is especially important if you are dealing with a business with staff members who come and go.


Accounting platforms like Xero have ways to connect with your bookkeeper and Tax Accountants without giving them full access. You can provide them with logins that don’t give total control of your cash.


If you do give someone access to your bank account or credit card, as well as checking statements regularly, it helps to have something called Two Factor Authentication. This means that if someone tries to make a payment using your account, you will get a text telling you it is about to take place. You’ll have to pass on a code for the other party to complete the transaction.


Be extremely careful with who has access to your financial accounts and update passwords regularly so that your money doesn’t end up in the wrong hands.



Review the return on investment


A good accountant may charge your business several thousand dollars a year but the money you save in tax reductions will make it worthwhile.


The old saying ‘you get what you pay for’ applies. If your accountant is on the lower end of the price scale, they may not spend enough time on your business or they may pass the job along to someone with less experience. This inevitably leads to errors and things being missed.


If price is an issue, ask for a fixed price. Talk to your accountant about the value you will get in return for your fees and agree on a quote before work starts. If they are worth their salt, your tax accountant’s services will more than pay for themselves in the form of the lowest (legally) possible tax bill.



A good feeling isn’t always enough to help you to choose or stick with a financial services professional. Check your provider is qualified and certified, ask them to provide a contract or a clear description of what they will help you with and always stay aware of your financial status.