My father often told me, “When you do something, do it right the first time. It will save time and money”.

This is always the case, no matter what we do. The only issue I am seeing is that people have a greater ability to try and save money today with the internet, and doing their own research and DIY shows makes everyone an expert. There is nothing wrong with trying to save money, and, as an accountant, I would be the first to adhere to it, but sometimes you need an expert to guide you the way, and that will cost money today, but the benefits could last a long time into the future.

Over the last few months, I have come across people who have set up their tax structures at a cost to themselves, whether tax or the actual cost of the structure set up. The examples are:

  1. A client enquired to set up a structure. By the time we communicated, he had done it himself (as you can do from the internet at a cheaper price than I would charge). The only issue was the purpose that he set the company up for, which gave him no benefit, and the company would never have any use for him. The cost of this could have been saved if he had spoken to me first.
  2. A client came to me to do the tax work for him. Even though it is in its infancy, the business is thriving and has generated a profit and value for sale. He wanted to minimise the tax. Unfortunately, when set up, the company’s shareholding limited the opportunity to minimise tax. However, of more significant concern, he wanted to unwind what he had set up to get tax savings, which would cost unnecessary tax in the short term.

When setting up a tax structure, there is no such thing as a one-size-fits-all for all people. The cost of a professional going through all aspects of the setup is small in the short term, but it could have significant long-term benefits.

Suppose you are considering getting into business and require a tax structure to be set up. In that case, you should consider consulting with a tax professional to ensure your tax structure is set up correctly and efficiently.

If you have any questions regarding the above and its impact to you, please contact Mark or the team at mark@mcaccg.com.au or 9923 2959.

“This is general advice only and not to be interpreted as individual advice specific to your situation. Contact us to discuss the best solutions for your needs.”