06 Jun Does your accountant understand property investment?
Setting up your ‘team’ when it comes to property investment is very important.
So important in fact, only one or two mistakes from any member of this team can completely negate any gains you have achieved towards reaching your future goals (and ultimately your financial independence / success).
Your core property team will generally consist of a mentor (such as Property Asset Planning), an accountant, a conveyancer and a Finance Engineer (not just a standard mortgage broker).
When you are ready to consider an investment property, many people’s first instinct is to look to their accountant. An accountant does a very important job, but ultimately their role is to put the right beans in the right columns after the financial year has ended (i.e. no changes can then be made to better your situation, they simply make the most out of what you have already done).
So how do you work out if your accountant is the right one for you?
You may want to ask if they are financially secure themselves. Do they understand how to create wealth? They should also be able to tell you (at a high level not breaching any confidentiality or privacy laws) how many properties or investments their other clients own.
When you ask these questions of your accountant, if they do not answer with clarity or conviction, we would urge you to proceed with caution. Ask further questions until you are comfortable that this accountant is ‘on the same page’ and able to assist with YOUR future wealth creation plans.
Ask other professionals you engage with for their recommendation of an alternate Accountant (such as Property Asset Planning).
From experience we know that accountants can be integral to your future. They can either cost you a large amount of money (from errors or omissions) or they can assist and fast-track your wealth creation.
An example of an error or omission is if your accountant forgets to put in your depreciation schedule for your investment property.
You need to be sure that your accountant has competent knowledge of planning, tax returns, trusts and self-managed super funds, and if not, who within their company (or another organisation) will be able to help you.
Regardless of which professional service you are working with, don’t ever be afraid to ask what your their experience is. Remember they are helping you build your way to financial freedom, and their advice needs to be in line with your goals.