# Paying an accountant for an email?



## LionMG (Dec 21, 2012)

Can anyone list the pros and cons of hiring an accountant through remote email communication (if that's even possible)?

I much prefer to have written information that I can go over several times instead of talking in person or on the phone. I also have social anxiety so that plays a part, not allowing me to focus fully on the information. 

My plan would be to ask the accountant if could write out my laundry list of questions in a fully detailed email, and then they could give me an estimate on what it'd cost to answer everything in an email back. 

Bad idea? Think I'll get anyone to do that? 

Thanks!


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## Pennypincher (Dec 3, 2012)

Why are you hiring an accountant, may I ask?

Are you doing many years of back taxes... or just a year? Do you have a small business? 

I find doing a lot of the tax preparation yourself is smarter and worth it. Many times you are preparing all the work for the accountant and know more about your own situation than they do. Not really worth it.
But if you go ahead with it, (let's say you have a small Corp) I think you are mostly paying for services and not necessarily for them to answer your questions. A lot of the time, in order to answer questions properly, you need to be able to see the receipts, and the books and the paper work etc... 

I dont necessarily think it's a bad idea. Lots of the time, especially for taxation, written references are the best way to understand. It just all depends on what you are hiring an accountant for


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## LionMG (Dec 21, 2012)

I have a small business yes (currently sole proprietor) - but it's not very complex. I have very few expenses/deductions. 

It would mainly be to ask specific questions. I know my return would be fairly simple and I could do it myself, but I want to be absolutely certain I'm doing it correctly. My plan would be to get my tax return done by an accountant for this year, then examine it to see what was done and replicate it myself for subsequent years because my business situation should remain the same.


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## Pennypincher (Dec 3, 2012)

Maybe try calling CRA's Business Enquiries line at 1-800-959-5525 (for tax questions). They won't give you advice per se, but they will give you references and answer any real scenario case questions. 

You can try to ask some questions here if you want as well. Some might work in that industry or have experience with it.


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## jamesbe (May 8, 2010)

In 5 years I've never spoken to my accountant I deal solely through e-mail. Works fine. She does a great job and answers all of my questions.


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## LionMG (Dec 21, 2012)

Pennypincher said:


> You can try to ask some questions here if you want as well. Some might work in that industry or have experience with it.


 Ya I planned to do that. I didn't want to flood the forum with my questions too much. Over the next few weeks I'll see what I can find out myself and by calling CRA, and then post whatever questions I have.

Great to know I'll be able to find an accountant to communicate through email though. Every one I've contacted wanted to set up a phone meeting and I got cold feet.


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## domelight (Oct 12, 2012)

Pennypincher said:


> Maybe try calling CRA's Business Enquiries line at 1-800-959-5525 (for tax questions). They won't give you advice per se, but they will give you references and answer any real scenario case questions.
> 
> You can try to ask some questions here if you want as well. Some might work in that industry or have experience with it.


I would think twice about using the 1-800# as a reliable source of tax advice. and suggest you read the link below, which are the results of a somewhat recent survey of CRA knowledge.

http://www.cfib-fcei.ca/english/article/2416-cra-customer-service-needs-improvement.html

a couple of examples. 
I recently had an auditor ask me if I paid HST on corporate management fee's. My answer was no a T4 was issued. The practice she was refering to had not been allowed since 2008. (This was a very public issue in the accounting world) She looked at me totally confused. 
Without going into tremendous detail of the transaction, it appeared to me (and I emphasize that this was strictly my personal impression) that she was attempting to make an assessment which would result in a large amount payable to the CRA as opposed to addressing the correct treatment of the transaction pursuant to the tax act.

Another was in regards to HST collected on gravel royalties. He thought I needed to collect it, I informed him I did not. He later faxed me an IT bulletin stating that I did need to collect HST on the transaction. I faxed him back the same document and told him to read the last paragraph of the page. (which clearly showed I did not).

I argue the tax act with CRA all the time. They are simply people and people make mistakes. Just because CRA told you so does not mean they are correct.


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## Homerhomer (Oct 18, 2010)

domelight said:


> a couple of examples.
> I recently had an auditor ask me if I paid HST on corporate management fee's. My answer was no a T4 was issued. The practice she was refering to had not been allowed since 2008. (This was a very public issue in the accounting world) She looked at me totally confused.


I would too ;-) What does T4 have to do with sales tax on management fees?


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## Pennypincher (Dec 3, 2012)

Of course the 1-800 isn't perfect, and I don't think anyone should expect an air tight answer from CRA. I think they can give you a good reference though so that you can read through it yourself and base your decisions on the document.


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