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Hiring a tax advisor: 3 mistakes! Too much tax, too much advice and costs

F_kinski — Sun, 13 Jun 2021 14:36:02 +0000

Hiring a tax accountant / Mistake – You want to find a good tax accountant near you! Because, you want to avoid risks and dangers, after all, it will cost you cash if you hire the wrong firm for your accounting. Costs for additional processing, advice and service, and of course losses, for example, if tax benefits are not taken (quote above). In the article on Lukinski, 3 specific risk factors are described that usually only become apparent after years of working together. The 3 risks first at a glance.

Hiring a tax advisor: 3 mistakes

In our great overview on the subject of tax advisors, the recommendations for many cities, for good tax advisors in the area, the tax advisor costs everything on the subject of starting a company and possible legal forms; taxes are so important for entrepreneurs that today we once again focus on the tax advisor choice. Because, especially the selection of the tax advisor is a central factor, for the success of your company. Before we look at the 3 mistakes in detail, here is an overview for you.

Assign risks to the tax advisor:

Intensive, regular cooperation; means commitment and time for tax consultant changes
Amount of monthly and additional costs; money missing for reinvestment
In the long term: lose money (pay too much tax, plus costs for tax advisor, lack of reinvestment) due to lack of qualitative / quantitative advice

Source: Lukinski.de, article tax consultant for enterprises

Let’s look at each of the commissioning risk factors.

Communication and bonding – risk number 1

First of all, a risk factor that is not directly related to the topic of “losing money” or “costs for the tax advisor”. It’s the regular, intensive relationship you have with your tax advisor. While most business relationships are relatively irregular, you’ll need to talk to your own tax advisor for many, recurring transactions in the. Whether it’s levies, consultations or queries.

If you don’t feel absolutely comfortable during the first meeting, or if you are not on the same wavelength, then you should refrain from working together. That is why it is so important to compare tax advisors, through recommendations from experienced entrepreneur friends or through initial discussions with different tax advisors. Also important so you have different quotes in front of you. How often you will communicate, you can already see by the weekly to annual meetings, even if only digitally.

Deadlines for submission of accounts, wages and annual financial statements

Regular communication includes, for example:

Monthly submission of the accounts, by the 10th of the following month (deadline at the tax office)
Wages and salaries, as of the 15th of the month
…
Financial statements

As an entrepreneurial person, you are in constant contact with the tax office. Therefore, you should also look for people with whom you, as described, are on the same wavelength. If it quickly comes to disagreements and disputes, the share of communication decreases and so you come to risk number 3: The lack of tax advice.

At the same time, you’re just as reluctant to make contact and won’t ask some questions you would have asked an accountant you trust.

So in addition to all the facts and figures, the personal level also plays a role.

Change of tax advisor: When mistakes add up

Already by the above points you have seen how in your company is connected with the tax adviser. Accordingly, a change is not possible overnight, it must be well prepared. You need to find a new firm that will take you on as a client. Especially good law firms check if they want to work with a client. The new tax advisor must then, as immediately start working for a smooth transition, for example, if you have a dispute with your old tax advisor.

So the commitment is relatively long-term, until you notice mistakes (we’ll get to that in a moment) and find time to change tax advisors in addition to the day-to-day business of your company. But don’t worry, if you find someone who accepts you as a client, the change is made relatively quickly, from the first conversation to the start is maybe 7 to 14 days.

Thanks to digital accounting, the change of tax advisor is possible within 24 hours if the mandate is accepted by a law firm.

Monthly, too high cost burden – risk number 2

Of course, tax consultants don’t work for free. When you look at the costs of a tax consultant, you also look at two values.

Cost factors: 1) Regular and 2) Additional services

Cost factor 1: Regular services – The basics, i.e. your bookkeeping and financial accounting, are usually calculated according to the value in use. Value in use means that the monthly amount of the costs is based on the amount of your turnover. The more turnover you make, the more you pay. The fees are calculated according to an official scale of fees. In addition, tax consultants have a small margin, up and down.

This means you pay a fixed value depending on how much revenue you make. Nevertheless, offers from different tax advisors can differ, as they have a percentage margin.

Cost factor 2: Additional services – In addition to your monthly basic costs, there are also additional services, for example consulting, but also the annual financial statement is charged extra. Here lies the risk factor, how much consulting is good, how much is bad for you and your company? There is no general answer to this question. Because, depending on how much previous commercial knowledge and also interest you bring yourself, ideally only 1 or 2 hours a month. Consultation means already inquiries here. Just about every minute is billed. If your tax advisor talks to you on the phone for 10 minutes, then an employee has to be informed (5 minutes), another 20 minutes of documents are procured, a decision is made and a call is made back – already 1 hour of additional effort has arisen, for one question. At 120 euros / hour, quickly a relevant topic for young companies.

So you have two cost factors and especially the additional services can quickly add up. If you use a lot of consulting, which many founders do, then every minute is charged. If you take an hourly rate of 120 Euros as a basis and only 1 additional hour per week, 4 hours of additional consulting (one appointment or distributed) will cost you 600 Euros. As a large limited liability company, this may not be a problem, but especially at the beginning, in the start-up phase, this is a lot of money.

Example calculation: Extra costs due to consulting

Here again in quick and simple summary, the calculation of the additional costs, by consulting service.

Hourly rate tax consultant: 120 Euro
Additional effort / week: 1 hour
Monthly extra costs: + 600 Euro
Annual extra costs: + 7.200 Euro

If a GmbH was founded with 25,000 Euro starting capital, an item of 28.8% of the equity capital, in addition to the costs for regular accounting.

Advice is important, but pay attention to dotted questions and be prepared, for example by doing your own research, this saves time

Dubious tax consultants? Too much advice

If you have a less reputable tax advisor and regularly 10, 12 or even 15 hours extra per month, which at first doesn’t sound like much, over the whole month, the risk quickly becomes a danger. This brings us to risk 3, the consequence: losing money due to too much overhead and taxes.

Losing money through bad / no advice – Risk 3

Through lack of communication (risk 1), too high fees for too much advice (risk 2) or even lack of knowledge, you lose money to reinvest and further tax benefits.

Too much paid money, tax benefits, you can no longer claim afterwards / partly costly, that’s why it is so important to have a good advisor at his side.

The tax advisor training is relatively simple, it is not a long, state training or a study, the training to the tax advisor makes one in a course, with subsequent examination. By and large, it is about the administration of taxes, not about the design of taxes.

Full-time training lasts (only) 2 months

No one learns the intricacies in the tax system in 2 months, it’s more about filing monthly and yearly correctly.

Many tax consultants also pass on their work to employees who then show little interest in the individual clients, for example because these employees are overloaded with tasks. Accordingly, the work is processed, that is, managed again, not designed. If you hire a tax advisor who does not attach much importance to communication, especially in terms of tax advice, you will quickly lose a lot of money, starting with tax allowances and ending with tax structuring for different legal forms.

Hiring a tax advisor: mistakes + 3 tips

Let’s summarize the four key risks again:

Intensive, regular cooperation; means commitment and time for tax consultant changes
Amount of monthly and additional costs; money missing for reinvestment
In the long term: lose money (pay too much tax, plus costs for tax advisor, lack of reinvestment) due to lack of qualitative / quantitative advice

Source: Lukinski.de, tax consultant for companies

This leads to the following question, how do you find a good tax accountant?

Find a tax advisor: 3 tips

Do I have to hire a tax consultant? What tasks does a tax consultant perform? How much does a tax consultant cost? Here you will find the answers to your questions and much more information on the subject of tax consultants in the area, finding tax consultants, costs, tasks, financial accounting, annual financial statements and taxes in general – but let’s start at the beginning.

Find a tax advisor: 3 tips

Tax consultant in the vicinity

Nearby Tax Accountants – Find a good tax accountant near you? We have searched the internet for you for days to find the best recommendations for tax consultants in your area: Hamburg, Berlin, Cologne, Dusseldorf, Munich, Stuttgart & Co. for your private tax return or income tax return or more complex accounting for companies, from monthly financial accounting to annual financial statements. Including adresses, telephone numbers and website.

Tax consultant in the vicinity

Selling Property Videos: Tips and tricks to save money and make a profit!

Lisa-Marie — Sun, 04 Oct 2020 15:00:44 +0000

Selling property – You have invested in your own property or inherited a house and now want to sell it at a profit? But you don’t know exactly which factors, circumstances and rules to consider or which mistakes you should avoid at all costs? We have compiled the most exciting, helpful and informative videos for you to prepare you perfectly for your upcoming house sale! If you are interested in the topic of selling real estate, then perhaps the topic of video real estate agent is also relevant for you.

Selling real estate for everyone

You want to sell your property as an investor or private person – no matter if apartment, granny flat, semi-detached house or detached house – but you don’t know exactly how? You are afraid of making mistakes and want to do everything right? We’ve put together a video guide to help you avoid the biggest home selling mistakes and learn everything you need to know. From home staging to tax savings, it’s all explained here so you can become a true pro for your next home sale!

Reading tip (external): Learn from the expert. You can find many, many more advice articles for free at Lukinski. The luxury brokers write new articles on selling real estate every week. With more specific advice pages on selling a house, selling an apartment, and multi-family and land. Plus basics like the purchase contract (who pays the costs?) to saving taxes with real estate.

Tip! Overview Real Estate XXL

The world of real estate is complex and multifaceted. If you want to keep an overview and avoid making mistakes, you should prepare well and clarify as many open questions as possible in good time. No matter whether you want to build, buy and rent out a property or live in it yourself, or even use a property as an investment to generate passive income: The preparation is the A&O. Here you will find articles, as well as book and video tips with successful and helpful books and videos on the subject of real estate – including tips and tricks from professionals and experts.

Book & Video Tips Overview: Real Estate

Sell property

In order to sell a property successfuly, there are some important things to consider. You should also avoid mistakes at all costs and prepare as well as possible. In these videos you will receive tips and tricks from experts on the subject of real estate sales. You will be helped to prepare yourself optimally and to learn which decisive factors are important. With these videos, you too will become a professional!

Selling real estate: Tips from the expert on selling real estate

If you want to sell your property privately, you have to pay attention to a lot of things. And with such a complex topic, mistakes can happen quickly. In the worst case, they can also no longer be undone. Especially at the beginning of the sales process, private sellers make many mistakes. So that this doesn’t happen to you, the real estate agent Frank Baur gives tips for a successful sale.

7 tips to sell real estate quickly

You have problems with the sale of your property? Whether it’s an apartment or a house, then you’ve come to the right place! In this video you will learn how to sell your property quickly with just 7 tips. How you prepare for the notary, are practiced for viewings and many other tips from which you can benefit, apply, you will learn in this video!

Selling property for as much as possible: 3 tips from the pros

In this video you will learn 3 reasons how you can achieve a higher sales price. Sales trainer Stefan Rappenglück reveals his 3 tips to achieve a higher sales price at your next real estate sale. With these tricks you too can achieve even higher profits in the future and can plan even bigger investments in the future.

Why you should sell your property now!

Should you sell your property in the current market environment? Or does it make sense to hold on to real estate because there is virtually no interest on investments? This video talks about pros and cons using a recent example. There are also concrete numbers so you have a better basis for your decision. And at the end there is a valuable additional tip for your wealth accumulation with real estate.

Avoid mistakes

As with almost everything, there are many things you can do wrong when it comes to selling real estate. Especially when it comes to finances, this can have far-reaching consequences. In these videos you will learn about common mistakes and pitfalls and learn from professionals how you can avoid them in the future. With these tips and tricks you won’t make any more mistakes and sell your next property for maximum profit!

Selling a property: tax pitfalls

Selling a property is not easy. There are many potential risks and pitfalls. Especially when it comes to taxes, sellers should be very careful. One tax trap, for example, is the speculation period. It mainly depends on whether the whole thing is tax-free or taxable. In this video you will learn more about tax traps when selling real estate and how to avoid them.

Sell property yourself: 5 points to avoid

Mistakes are often made by owners when selling their own property. The most important mistakes and their solutions are listed in this video. For example, it is about the transfer of the property before paying the purchase price, black money payments with the buyer, the concealment of hidden defects and similar mistakes that should be avoided at all costs when selling your property.

Sell house and avoid mistakes

Selling your house or apartment can be a stressful experience. In this video you will get practical tips to consider. Selling your property is often a special stage and a difficult step. There are many mistakes you can make and some key things to consider. In this video you will receive tips and assistance.

Real Estate Sales & Taxes

There are many financial aspects to consider when selling real estate. Above all, the topic of tax must be taken into account. A lot of money can be saved by using tricks and the appropriate know-how. But it is important to consider certain things in order to do everything right and not to run into problems afterwards. In these videos you will receive important information on the subject of taxes when selling real estate.

Sell private real estate tax free

Want to sell your private property, but also want to save on taxes? These two experts explain in the following video how you can possibly sell your property tax-free and thus save a lot of money. Especially to build up private wealth, this is a helpful tactic in the real estate business!

Taxes when selling a house

Selling your own property tax-free? Is that possible? As the seller, you don’t get the full amount from the sale price of a property: you pay estate agent commissions, notary fees and you may have to finance the move to your new home. But what about taxes when selling a house? What does the 10-year period mean when selling a house and how can the gift tax allowance be of benefit to you? An expert tells you about the taxes when selling a house.

Questions: Sell real estate tax free?

In this video you will get answers to important questions such as: How do I sell my property tax-free? How do I operate my private asset management business? How can I engage in commercial real estate trading? This and much more you will learn in this video, have fun and above all: success!

Overview Real Estate XXL: Investment & Co.

Here you get back to the overview of book and video recommendations on the subject of real estate in Germany. Investment cases, capital investment, passive income, house or apartment buy and rent and much more is explained to you here by experts and understandable. In this XXL guide you will find information and articles on the most diverse questions on the subject of real estate.

Back to Book & Video Tips Overview: Real Estate