1I have very little income, why do I need this headache?
1. Because conducting a business activity without open cases in the VAT and income tax authorities are criminal offenses, and each authority has a different judicial authority, which means that a person can be summoned to a hearing for income tax separately and for VAT separately, and each authority can have a different tax result.
2. The marginal tax % for a normative person starts from 10% towards me, a person who does not keep books and does not have a tax file starts from 40% towards me, when every shekel of income from a business is liable to social insurance at a rate of about 12% social insurance and health tax - total Taxes of 52% towards me are high, and I didn't start talking about VAT 🙂
3. We have a special route for exempt traders, in which we have combined all the necessary services for an exempt trader at a very attractive price.
4. By submitting an annual report, the client receives a tax refund check for free, and if there are losses, a tax refund can be made from a high salary.
5. Most freelancers started "small" and grew over time, you'll know what a day will bring forth.
6. An open and orderly file with the authorities opens up the possibility for you to work in additional places \ to offer additional services to a wide variety of clients without fear
7. The clientele is very limited to the self-employed who do not have a portfolio, because they do not have an invoice/receipt that can be used to claim the expense, or an exemption from withholding tax.
8. For a self-employed person who has a file, legal certificates can be produced for banks \ insurance companies \ discount at the municipality and gardens \ for the US embassy, etc.
9. You can give your employers a receipt and get an increase of between 10 %-20% in your salary because this way we save the social security and the other expenses that exist for hiring an employee.
2What is the difference between a CPA and a tax consultant?
1. A CPA mainly specializes in the accounting presentation of financial balance sheets of public companies traded on the stock exchange, in the construction and presentation of balance sheets of companies and corporations according to various accounting standards. In fact, the title of a CPA is accounting, with very little connection to reality, since there are 4 firms of CPAs that handle the listed companies, all the rest belong to the private market.
2. When different, a tax consultant specializes in studying taxes, social security and accounting for two years, with an emphasis on professional application of the material studied.
3. A tax consultant specializes, among other things, in everything related to dealing with social security, whether in collection matters or in the matter of claiming pensions, while social security studies are not part of the training and syllabus of an accountant at all. In other words, a CPA with a certified certificate does not know the most basic and simple things in managing an independent portfolio or a National Insurance company.
4. For the same reason, a tax consultant has an advantage and priority in everything related to the employment of employees and salaries: salary plans, labor laws, employee-employer relations, etc., because large parts of these areas are strongly mixed with social security.
5. To the CPA's credit, it can be said that they are very learned and educated people who took a lot of trouble to get an accountant's certificate. 6. Most of those who graduate with a degree in accounting become financiers in large companies, but from here to representing people and companies in front of the tax offices - the road is long.
3I have been with my accountant for 20 years, why change?
1. For the same reason that you change your car every 4-5 years, you want to move forward and improve your quality of life, you want a smoother ride, a more spacious and powerful car, I also changed my motorcycle to a bigger and more powerful motorcycle, there are no words for a completely different driving experience.
2. Maybe for 20 years you were wrong? Maybe with me you will get much better business advice and professional guidance that will save you thousands of shekels a year? Maybe I have tax plans / ease in managing books, salary plans, representation with National Insurance at a level you don't know? And this is beyond the added value, in the form of a courier service, providing regular updates on the level of income, important legislative updates, publishing professional articles, a website full of quality and professional content, and more...
3. I have quite a few clients who have been with their CPA for 15-20 years or more, and have switched to me in recent years - I would be happy to give you their phone numbers, and you can find out for yourself.
4. I understand your concerns, because habit has power, it cannot be ignored, and sometimes even bad habits like smoking and drinking are very difficult to quit, at the same time, when you know that you are making a change for the better, that at the end of the day it will only do you good, so it's worth it The temporary comfort there is in the beginning.
5. I have clients who, in the first annual report I prepared for them, saved them NIS 10,000, sometimes it's worth feeling a little uncomfortable 🙂
6. Experience shows that professionals who have been involved for many years in such a dynamic field as taxes, where every two hours or so there are amendments to legislation, judgments, etc., are left behind at the end of the day in the professional aspect,
7. Also in the technological aspect, I can tell you that one of the biggest problems of accounting and tax consulting professionals is the technological challenge, today all reports have become computerized, all professional returns come in emails or are updated on the websites - and I have many colleagues who are firmly stuck in the past, a fact that makes Damage to both themselves and their customers. I can share with you a classic case that happened to me in which a client who transferred to me, brought her accounting file, you simply see that her accountant was not connected to the system for representing clients at the Tax Authority and National Insurance - and was updated like his client through collection letters and threats from the Tax Authority - which is known to the public In some cases, these are idle threats - while I can provide an answer at the 30-second level for any of your questions or an event that occurs in your file with the income tax authorities, social security and VAT.
4Why bring you original documents? I'm afraid you'll lose them...
1. I understand your concern, at the same time there is a legal obligation from the tax authorities, especially VAT that one of the conditions for claiming VAT refunds is that the invoice be signed and original, otherwise I do not have the right to demand refunds.
2. The documents are kept with us in personal binders, each invoice is filed and entered into an accounting system in an orderly manner, so they really have nowhere to go.
3. At the end of the tax year, we return the binders to you for safekeeping after the tax year, so that in any case the documents return to you.
4. If during the year you need an invoice, for example for vehicle repair or an invoice for the purchase of a certain product, we can send you a copy of it by email or WhatsApp within a few minutes, so that the document is available to you if necessary.
5. You have the option to take a photo of the documents before you transfer them to us or scan them in your personal system.
6. The office is protected and secured by an alarm system as well as by a closed circuit camera system 24 hours a day, so that every action around your case is recorded and accessible to me in the application 24 hours a day from wherever I am.
5Why do I have to pay a tax advisor while I'm on maternity leave? Work injury, trip abroad, I have no income at all, and any situation where I am not active?
1. The fact that a person is abroad \ inactive does not exempt him from the various reporting obligations to the authorities, for example: income tax \ VAT reports, reporting 0 is also a report.
2. The average length of processing a task with the tax authorities is between one and two and a half months, so even in months when there is no income, we have work "behind the scenes with the authorities".
3. On the contrary, if you are abroad, this means that your income is likely to be 0, a fact that requires a tax assessment, which will result in the reduction of income tax and social security advances, possibly also a change in the definition of social security status.
4. Our office offers a number of services that do not depend on the level of income or activity, for example, the production of legal certificates for banks \ insurance companies \ discount at the municipality and gardens \ for the US embassy, etc.
5. Even in the months when the client is inactive, we carry out comprehensive inspections of all tax authorities to identify and address deficiencies and reporting obligations, such as: renewing exemption from withholding tax, canceling fines, updating mailing addresses for letters, checking National Insurance debts and more.
6. We send professional articles that improve your professional conduct.
7. It should be taken into account that the fee is based on busier and less busy months, that is, the working assumption is that in months in which there are a lot of income and expenses or alternatively in a professional response to customer questions the investment in each customer will be double or triple, and there are months where there is a so-called industrial silence from the customer, so that things balance out .
8. If every month was a busy month for the customer, one of the two would happen:
A. Every tax consulting and accounting firm would collapse in the face of the load,
B. Or alternatively the fee would jump three months after me.
6Why do you need a power of attorney? What does it allow you to do? Don't want to get into trouble with them... Whatever you need, ask and I'll answer you.
I understand your concern, there is really quite a pile of documents that need to be signed, and most of the documents are not in our Hebrew language at all :),
1. I would be happy to explain to you what each document means in general so that you understand what you are signing.
2. I would be happy to take a photo of all the documents for you so that you have a copy with you as well, and after our meeting you can show them to a friend / lawyer / neighbor or any person you trust in these matters and you will see for yourself that these are standard documents.
3. As you can see, 90% of the documents have the symbol of the Tax Authority or National Insurance, meaning that these are standard forms, not things I wrote on my own.
4. As a tax consultant I have about three tons of duty of integrity and professional ethics, a personal professional responsibility that I am obliged to by virtue of the law and the regulations of the Chamber of Tax Consultants, meaning I have no chance of moving a millimeter to the right or left on these issues, as far as I am concerned it will be killed and not passed.
5. More than that, all my reputation and business success depends only on the professional work and the good name I create for myself through years of hard work, I don't see a situation where I do anything that can damage my name even in the slightest.
6. This is actually the heart of our work, representing clients before the tax authorities in Israel, my job is to relieve you of all the headaches and bureaucracy in front of the authorities, that is, you deal with these disgusting forms for three minutes, to get complete freedom from this conduct afterwards - that's the reason that people want to pay us in the first place, take money and sit down with them.
7. All these documents are intended to allow me to represent you in the best way in front of the authorities, without inviting you every week to sign one or another document.
7If I have problems from previous periods before I came to you, does their treatment involve an additional cost? Or is it part of the price?
1. Good question, first I need to check that I have the tools and the possibility to deal with these problems, and I will explain, if there are fines from the past, occupational classification, address update, etc. are incorrect, we have no problem doing this, as part of the service we provide, but if two are missing For example, two-year statements, capital statements, open investigations, discussions, reviews of income tax books, etc., so this is a slightly different conduct that requires a completely different professional preparation from us, and here each case is individual.
2. In principle, if it is about routine treatments, which do not require too much professional involvement or exposure to ethical issues - then there should not be a problem, but in cases where, for example, they did not submit an annual report / capital statement at all, this is already a service that entails an additional fee.
8You are in Holon and I live very far from Holon, how can such a relationship exist?
1. Great question, luckily we have a lot of precedents in the office so my farthest client lives in Los Angeles 🙂 so we are good, but let's talk about your case…
2. Most of our communication is done by phone \ emails \ WhatsApp, etc., in 2015 there is no longer a real need to go to the accountant with the material in hand, drink coffee for an hour, find parking / pay for parking, burn time on the roads, etc., but you can transfer to us the The material is by registered mail once every two months, if you received a strange letter from the authorities, you can take a picture on WhatsApp and I will give you an answer almost immediately.
3. We have a courier service to the house at a nominal cost, so even the already small Land of Israel becomes much smaller thanks to the emails, the mail and the courier service.
4. All reports can be signed by email / fax, there is no real obligation to come to us physically and sign.
5. We are available to you from 08:00 in the morning until 17:00, and in case of emergency also beyond.
6. As of today, we have customers from Beer Sheva to Safed, so we know how to deal with customers who live outside of Tel Aviv.
9I don't pay my accountant, why start paying you?
1. There is a well-known rule in the world, you get what you pay for, at the moment you are not paying anything and on the face of it everything is fine, you send invoices, the CPA submits reports - everything is good, but you should know that in most cases, the savings of hundreds of shekels A month at the end of the day costs much more, for example:
• In everything related to the management of account books and preparation for the income tax audit.
• Correct construction of profits in preparation for capital declaration.
• In applications for mortgages and credit facilities.
• Preparation for social security claims.
• Exhaustion of your rights against the income tax - searching and locating credit points, etc.
• An open line for professional advice and guidance during the day-to-day work.
• Privacy - disconnecting the family from your case - separate and rule.
• You have a professional who fights for you - I ask you if you are a professional who needs to invest time and money in a person who does not pay you a penny - how much would you fight for him, how many resources would you invest in him so that he gets his full rights?
2. You can get a lot more out of managing your case - exhausting social rights against social security, correctly claiming VAT expenses, reducing income tax and social security payments, refunding excise duty on diesel, and more.
3. This is a recognized expense.