Your Accountant has the obligation and duty of care to ensure that they are doing the best for their client in compliance and advice, to do this they must confirm that the information to hand is correct, complete and not assume anything. Whilst you may think what you have sent them or told them is self-evident and obvious, your Accountant doesn’t have the luxury of making an assumption and they will therefore ask for confirmation or clarification if it is in their view necessary.
WHY DO THEY ASK TO SEE SOURCE DOCUMENTS?
Your Accountant may at times ask to see a copy of the original document when you have told them the dollar figure as they may need to check what tax jurisdiction the transaction originated from or to review what portion of the dollar figure is claimable, partially claimable or not claimable against IRD rules and schedules. A source document has been supplied by an independent third party and can be verified by them. Your Accountant may also want to see the date the agreement was in effect as this sometimes effects the accounting period it falls into or date depreciation can start to be claimed from. Unless the actual source document is supplied when requested, delays will occur until it is supplied.
I SUPPLIED THE INFORMATION WHY ARE THEY ASKING AGAIN?
Please be very careful when replying to your Accountant that the information they have asked for is actually being supplied. Common errors are:
Help your Accountant to help you, in a cost effective efficient manner, by supplying all information requested promptly and correctly. They will need to know:
Posted: Friday 6 March 2020