How do I become a Coombe Smith client?
Generally the first step is to phone (07) 839 2801 or email Mareese to set up a time when Ross can call you to have a free 5-10 minute chat about your situation and what Coombe Smith can do for you.
Why use a Property Accountant?
Property is a specialist area. There can be large advantages in dealing with property investors every day and knowing the tricks inside and out. A Property Accountant can ensure you are maximising your tax deductions and also balance this with your specific risk.
We would also suggest you use a Chartered Accountant, as CA's have spent years getting educated in accounting and tax, and they are required to complete continuing education each year to ensure they are up to date with best practice and any tax changes.
How long has Coombe Smith been in business?
Ross set up the Waikato business of Coombe Smith over 14 years ago on the 1st of April 2004. Over time the Hamilton business has grown from just Ross, to having 10 staff.
What is a Look Through Company (LTC)?
A Look Through Company is a normal company, set up through the Companies office (www.business.govt.nz/companies) that has elected with IRD to become an LTC. The election is done through form IR862 on www.ird.govt.nz
The major difference between an LTC and a normal company is that in an LTC the profit or loss for tax purposes flows through to the shareholders in proportion to their shareholding.
An LTC is frequently used by property investors to give flexibility with where the profit or loss will flow to. For example, if the LTC owned a rental making a $10,000 loss, with the husband earning $200,000 pa being on the highest tax bracket at 33%, and the wife earning $0 pa. The Husband could own 99% of the shares, so receive $9,900 of the losses against his income, giving a tax refund of $3,267.
Step by Step guide for getting your End of Year Financial Accounts done
- Annual Questionnaire Checklists will be sent out for you to complete.
- You need to sign your Questionnaire checklist and return it with your financial records (electronic copies of records are preferred).
- We check your financial records to make sure we have everything we need. We will contact you if there is any outstanding information we require.
- We send you a written quote.
- You need to accept the quote by signing and returning to us. This initiates a job in our system and allocation of a target end date.
- Jobs come up on our work scheduling programme in the order signed quotes are returned to us. Our normal processing time is 8 – 10 weeks.
- The accounting team may contact you re further information or clarification of information while working on your accounts.
- Draft accounts and tax returns are completed.
- All Financial Statements are reviewed by Ross Barnett, CA.
- Financial Statements, tax returns and any other compliance documents (eg. Minutes, Shareholders’ Resolutions) are sent to you for signing.
- You need to sign where indicated and return all documents to us. Tax returns can then be filed with IRD.
How do I make payment of my account?
Our standard payment terms are 14 days following the date of the invoice.
For Annual Financial Statements and tax returns, once you return your signed Quote, we issue an invoice for the full amount. This invoice details payment instalments, amounts and due dates. There are two instalment dates given: 50% 14 days following invoice date and the balance 4 weeks after that.
Payment methods include:
- Direct credit to our bank account
- Credit Card
- Deducting accounting fees from tax refunds (NB: an initial deposit of one third will still be required for this option, due 14 days from the date of invoice)
- Financing by Fee Smart