On Wed, Mar 31, 2021 at 8:19 AM Dániel Fancsali <
fanc...@gmail.com> wrote:
>
> Well, to be fair, I am lookint at it through the eyes of a private individual, and the discussion is purely from the "how to best model and track your personal/family finances". In case I'd wanted to start a property business, I probably would spend some money on an accountant...
>
TL;DR
I stopped using an accountant when I found that accountants really
weren't considered,
by the tax authorities anyway, to be responsible for anything filed -
- - they don't talk to
your accountant - - - they talk to you (if this happens you do have
legal recourse re: the
accountant - - - - - - if you can afford it!). I also found that they
more liked their fees than in actually knowing how to do things.
Remembering Enron
I even argued with a bank when they forced me to use an accountant for
that year.
There were more errors that year than any before or since. As the
government seems
quite insistent on shovelling mountains of information at one I just
take advantage of
that and do my own reading. I have twice had questions that I could
not get answers on even from senior partners at major international
accounting firms.
Doesn't mean that I'd never use one - - - - just think their
usefulness is more than
somewhat overrated and with their cost - - - I prefer to keep those
$$$ in my pocket.
What most call accounting is far more accurately 'record keeping'.
Accounting is what
one does with that collated information. Few do much except for business plans
and then that isn't really what accounting is about. IMO accounting is
a skill whereby
one can look at past behavior of a business and extrapolate and/or
develop future
plans/directions that have a high degree of accuracy. (Business plans
are tools to
show lenders how safe your plans are.) Just looking into the past is
very easy and very safe (that's where most accountants work) but its in knowing
what to do and/or not to do starting from today moving forward where
this skill is
so very valuable. (AIUI today this is commonly called financial engineering - -
I think - - - - :-( !)
If you decide to start a business by definition it is a small business
(if not then this
whole conversation would have been a waste of your time) and if you
hire all the
advisors you are presently suggested to do I would posit that your
likelihood of survival
is diminished to where that possibility is unlikely. The survival of
the businesses of
those advisors will, on the other hand, have had a major improvement due to
your generosity.
Yes big business working very much in the fashion that I'm suggesting
that you not
do - - - but then - - - how often have you seen big business be innovative or
interesting - - - - - they buy those kind of businesses and most often
kill or at
best stifle whatever those small businesses had when they were bought.
Regards