Accountant & Lawyer Interviewing Checklists

Well I can provide some questions you should ask of your accountant but someone else will need to provide you with information on lawyers. Firstly you need to determine the purpose your using the accountant in order to determine which questions to ask. Since this is a property investing forum I will therefore assume you want an accountant knowledgable in that area. Some accountants will have a good general knowledge of property investing and the taxation implications but there experience is limited to one state, while others will have knowledge of other states and some will have knowledge of international taxation issues, particularly relevant if you want to invest overseas. Ok on to the questions:-

1. Are you a member of a recognised accounting body ? (only ones are CPA Australia, Institute of Chartered Accountants in Australia and National Institute of Accountants).

2. What is your experience with advising people on taxation structures ? (particularly relevant for asset protection, structures such as discretionary trusts, companies, individuals, etc)

3. What are the latest issues that I should be aware of as a property investor ? (if they don’t know much about the recent changes announced in the 2004 state and federal budget go elsewhere)

4. How long have you been providing property taxation advice ?

5. What is your charge basis and who will be doing my work ? (For a good accountant expect around $200 per hour in the capital cities – yes you can find cheaper and some will be good but its like a doctor you don’t spend all those years of training to become a H&R Block representative. Also make sure that either the principal or a knowledgeable staff member will be doing your work. I have seen examples of people with IP’s who didn’t get there 2.5% deduction and the property construction was completed in 1991).

6. What are your quality control procedures ? (You want to make sure that someone else checks the other persons work. Critical for detecting errors and is lax in most small accounting practices)

7. Do you have any experience in interstate and international taxation issues ? (will be critical if you want to invest in NZ)

This should cover most of it. Get a feel for the office, are the desk clear and tidy, does the office look professional (doesn’t have to look expensive but I would be concerned if I saw files all around the floor – real risk of losing things and missing out on deductions – and believe me it happens), do you feel comfortable with this person (that is extremely important). And make sure that they have professional indemnity insurance and make sure everything is in writing. Don’t accept verbal information (too difficult to sue if something goes wrong based on incorrect advice). Always ask for it in writing but also expect to be charged for it. The days of free advice are gone so don’t expect to ring your accountant (talk for 10 mins) and not get a bill. If you want it in writing then expect a bill with it. Good Luck

I havent dont it yet, am getting there slowly!, but I got a tip the other day that the Law Institute in Melbourne offer a free matching service, you tell them, don’t quite know how yet, what you want as in what we are doing here, and they will send you a list of solicitors in your area and surrounds that can help you, sometimes the first interview is free to so that may help a few of us.!

If you guys use it before I do, good luck.

Helena

Helena Andrewatha