Is Your Accountant Really Cupid

Valentine's Day in Australia has its origins in anonymous card-sending, but in these modern times it has become a veritable love-fest full of affection, cards, flowers and, most importantly, let’s not forget, chocolate.

Before you drain your savings account buying a heart-shaped island getaway for your potential partner, consider this: your accountant might just be the unsung hero of romance you never knew you needed. What? I hear you ask, talk to my accountant about romance?

Why not, accountants need love too and the advice they provide might give you help to navigate the sea of love without capsizing your finances, and it could prove life-changing.

1. Plan Your Approach with a Valentines Day Plan (VDP)

Just like every business needs a business plan to achieve its goals, your Valentines Day adventure needs careful planning to maximise the use of your finances and increase your Return On Investment (ROI). Accountants are experts in the area of Business Plans and may be able to give you great advice through this initial planning phase.

2. Budget Love

Your accountant will tell you that a successful VDP starts with the formation of a viable budget. It doesn't start with grand gestures or lavish spending but with the formulation of your Valentines Day Budget. No, really! Budgets can be romantic too!

It’s about understanding the best ways to use your income to impress the target of your affection. I mean, why buy a dozen roses when a single, thoughtfully chosen bloom can mean so much more?.

3. The ROI on Valentines Day

In the world of finance, Return on Investment is king, and your accountant knows this better than anyone.

So what is your expected ROI this Valentines Day? Are you planning to spend the aforementioned kings ransom on the chance of a solitary night of passion or something much longer term?

Applying this principle to Valentine's Day, they would probably advise that the ROI on expensive Valentines Day gifts may not be any higher than wise spending on the right items. For example, a handmade card or a home-cooked meal can yield exponential returns in the currency of love, if presented the right way. They may even have a PowerPoint slide presentation to enhance this balancing of emotional dividends.

4. Experience Over Expense

Accountants, ever the pragmatists, will nearly always recommend investment (in this case in experiences) over expenditure (in this case on expensive gifts). They might suggest that the depreciation rate on dinner in an expensive restaurant is immediate, while the memories engendered by a romantic picnic under the stars could be priceless and have a greater long term value.

They will likely demonstrate how experience-based spending can be both cost-effective and deeply romantic, proving that accountants too can be poets at heart. Plus it may well give you a far higher ROI!

5. The Tax Implications of Love

Valentine's Day and tax implications go hand in hand. Why are you laughing? Didn't you realise that supporting your partner in a de-facto relationship can have tax benefits? You see, even the Australian Taxation Office (ATO) has a romantic side.

6. Diversify Your Portfolio

Accountants will always recommend that, when it comes to investment, you should never put all your eggs in one basket. This wisdom applies to investments in romance just as much as business or personal investment.

Is it your plan to invest all of your finances into one Valentines Day Target where the ROI could be zero or perhaps spread your finances into smaller investments on a number of targets in the hope of a wider ROI? Of course it is important that if you adopt the latter approach, the various targets you approach must NEVER find out about each other.

7. Love Is A Joint Venture

Finally, remember that Valentine's Day is about partnerships. Sit down with your significant other and discuss your financial goals for the year.

OH OK! You can leave that one until tomorrow.

Happy Valentine's Day, and here's to love that's as enduring as a well-balanced budget!

For more information, email us today at admin@hillsaccounting.com.au or call us on 03 62737800