number of different things all at one time and being a small business I do not

Number of different things all at one time and being

This preview shows page 117 - 119 out of 241 pages.

number of different things all at one time and being a small business, I do not want to be troubled with the finicky things like paperwork. From my point of view, it is a lot easier to give the paperwork to the accountant. So I go out and make the business and the accountant takes care of the taxes and compliance stuff.”(M8) Those Maori operators who undertook the record keeping function themselves found the process stressful because of their lack of proficiency, discipline and efficiency in utilising their accounting system: “It was just the paperwork involved like going through the credit card and your bills, your invoices and receipts and sorting that out. But unfortunately rather than doing it once a week which was easier, I just do it in a rush in the last week before it was due. I run it on the MYOB and I probably don’t do it efficiently. Because I do the GST myself to supposedly save me money, it fact it cost me a lot of time and stress. When I was running this other company, honestly I was close to having a nervous breakdown from the stress. I used to wake up at 3 o’ clock in the morning and I couldn’t go back to sleep wondering how and when I am going to finish the returns.” (M9) Due to their high power distance values, M2, M4 and M8 had adopted accounting packages based on their accountant’s recommendations, regardless of their own level of accounting proficiency. Their high regard and trust towards their accountant, as the authority figure, caused some Maori operators like M8 to allow their accountant full access to their business including their bank accounts: “All the process of getting the information is done by the accountant. For the Income Tax, I give him all the receipts and he has access to the bank statements and he has control over the bank account.”(M8)
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104 However, their excessively high level of respect towards their accountants can be detrimental, as observed by BE3 and BE4: “Like we had clients who thought that their accountants had paid the taxes on their behalf. Instead they were not paid and the accountants were the ones who stole the money. The client’s PAYE was outstanding thinking that his accountant had paid them to the IRD, but hadn’t and therefore he got into trouble with the IRD. Some taxpayers really trust their accountants because they have no one to rely on and so they had to trust someone. Quite a lot of them do not know these people and like sharks, some of these accountants will take advantage of those who are new in business and not know much.” (BE3 and BE4) Despite the collectivistic trait of Maori, they could not access family members who were skilful in record keeping. Consequently, short term oriented Maori had to pay others for their record keeping function, a decision which was reinforced by their high power distance values. Hence, in addition to the many reasons for employing accountants, as discussed in Chapter 2, section 2.8, the findings from this study show an alternative rationale for employing accountants, which is related to the high power distance and short term orientation cultural values of Maori.
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  • Fall '16
  • tax compliance, SME Operators

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