.....out of almost $7000 per year.
I have been battling with my Dad for the last 10 years about him employing my cousins as Lawyers and Accountants. These 2 guys (and their respective practices) make normal lawyers/accountants look like Angels. Talk about avaricious and greedy.
Anyhow, my dad, being 89 yrs old always insisted on doing the payroll tax/IRD returns himself. He has been reluctant to hand anything over to me as the 'Lebanese' way is to retain control as much as possible when you are the 'Patriarch' of the family. (Dads father was exactly the same to him, as was his father so I can understand it to some extent)......and it drives me nuts!!!!!!!
With all the modern tax processes, Dad got to the point where he simply threw his hands up in the air and, (unbeknownst to me) handed the PAYE, Payroll, etc over to my cousin ( the accountant) who prepared the end of month reports etc .
Before I headed over to the SE, I told my father that if things didn't change when I came back, I would tell him where to put the Orchid side of the business and go seek alternative employment.
I get home and after a heated discussion finally got Dad to agree to let me handle the whole payroll from start to finish.
I purchased a Govt sanctioned computer program, loaded it into my laptop and spent the last 3 days setting it up and learning how to operate it. It took me most of the 3 days to back enter the control data, but yesterday, I completed the task and filed the end of May returns. ( A one off cost of $375 for the program and a yearly support package incl updates of $350 per annum)
When I showed dad the results and paper trail he was impressed to say the least and so I asked him how much my cousin was charging a month to do the same task.
To simply data entry 20-25 timesheets per month and print the monthly reports his bill came to $500+15% tax per month!!!!!!!! That's almost $7000 a year that the business has been paying for some lowly clerk to sit at a computer for about 1-1.5 hrs a month.
I just got off the phone to my cousin ( He rang to find out where last months timesheets were) and I took great delight in telling him that all the returns had been filed and his practice was no longer required for that task. His reaction was priceless! He dropped the phone, picked it up then started yelling and swearing at me along the lines of "What the hell do you know about accounting?".
Now, I know that he has a timer on his desk and times each call so that he can charge it out at his normal rate ( Judging by the bills we get, his normal rate is approx. $5 per minute..........which normally includes questions like 'Done any hunting lately, Hows the charter boat going, Hows your mum etc)
I cut him short and said "I'm not paying $5 a minute to have you yell at me, the decision has been made, I am hanging up now".........and I hung up!.......... I don't mind paying the $10 for that 2 minute call
Now that I know how to operate the program it will only take me a little over 1hr tops per month to run it................and save the business $7000+ per yr.
Small steps I know, but with the export markets the way they are, it could be the difference between surviving and not surviving.
( Here is an example of how avaricious this guy is. He manages a number of family trusts for other branches of the family. In one of the trusts, he was appointed as Property Manager by the Trustees. My Uncle asked me to help him go through the accounts late last year as he was concerned at some of the fees being charged. Buried in the accounts under 'Monthly Consultations' was 5hr fee (at $300 per hour ) for a consultation between the Property Manager and the Accountant.................My cousin had charged the trust $1500 for having a 'consultation' with himself every month for 12mths!!!!!)
The biggest part of all this is my dad now is starting to realise that he can relinquish control and make his life easier.