scaremongering by ato, page-10

As I have stated previously, I am a CA and a CTA specialising in SMSFs.

I would strongly echo the advice given by others on this matter.

Cheap accountants are often cheap for a reason.

When a client receives an engagement letter from their accountant and it lists charge out rates of $180 for mid-level staff to $300+ for senior staff there is more to those numbers than first glance.

While the time actually spent on a client's work is charged at those rates; what is built into the rates is coverage for the many, many hours of time spent maintaining the accountant's knowledge and skills.

You are paying for the expertise which derives the numbers and ensures compliance, not so much the numbers themselves.

As an example, I would personally spend roughly 1 day a week in total reading new ATO rulings and determinations, reviewing recent court decisions and reading journals published by the Institute of Chartered Accountants and the Tax Institute, as well as various other newsletters. In addition our firm engages an external education provider to present bi-weekly training for several hours at a time plus attending many seminars and workshops.

All of this time and money is invested to achieve the best outcome for our clients.

We could very easily take the shortcuts and then charge lower fees to clients but that is not the way to grow a sustainable referral-based business.

Many recent entrants to the market advertise cut-price rates and are attractive on that basis, however most offer very limited investment options and transactions before the fees begin to rise. Work is also sometimes sent offshore, to India in particular, with the responsible accountant actually having little to no involvement in the actual preparation of the accounts.