When choosing an accountant, it’s important to find one who aligns with your specific needs, whether personal or business-related. Working alongside a personal financial adviser can help ensure your broader financial goals are considered, as accountants often specialise in areas from individual tax returns to niche industries.
The right accountant can streamline your finances, ensure compliance with tax regulations, and help you save time and money.
How an Accountant Can Help With Your Tax
1. For Employees
An accountant can be invaluable if you’re an employee with multiple jobs or income streams from investments.
They can help you claim all eligible tax deductions, ensuring you maximise your refund and avoid errors on your tax return.
Even if you have income from just one employer, an accountant can make the process smoother.
Consider lodging your return yourself if your tax situation is relatively simple. You can use myTax, the Australian Tax Office’s (ATO) free online service in Australia.
To use myTax, you need a myGov account linked to the ATO.
However, consulting an accountant is often worthwhile if you have a more complex situation or want to ensure you claim everything you’re entitled to.
2. If You Work for Yourself
For sole traders, contractors, and freelancers, an accountant can be a game-changer.
Navigating business activity statements (BAS) and pay-as-you-go (PAYG) instalments can be tricky, but an accountant can guide you.
An accountant can also advise on tax deductions, super contributions, and other tax obligations specific to self-employed individuals.
You’ll avoid unnecessary stress and penalties by staying compliant with tax laws and regulations.
The Role of an Accountant in Your Business
Running a business involves various financial responsibilities; an accountant can help you manage them efficiently.
As your business grows, an accountant can offer vital advice and guidance to keep your finances on track.
1. Setting Up and Maintaining Financial Records
A key task for any business owner is keeping accurate financial records. An accountant can help you set up and maintain these records using software that suits your business needs.
They can assist in choosing the right accounting and bookkeeping software, ensuring it aligns with your operational requirements.
2. Choosing the Right Legal Structure
An accountant’s expertise goes beyond just handling numbers.
They can also help you establish your business’s legal structure, whether a company, corporation, partnership, or sole trader.
Getting this right from the start is vital for tax, liability, and administrative purposes.
3. Additional Business Services
An accountant’s role in a business can include:
- Applying for an ABN or ACN: They can assist in the application process and ensure you have the necessary registrations to operate legally.
- Dealing with the ATO: Accountants can handle interactions with the ATO on your behalf, saving you time and reducing the risk of mistakes.
- Profit, Loss, and Forecasting: An accountant can help you monitor your business’s financial health, offer insights into profitability, and help with cash flow forecasting.
- Paying Staff and Contractors: Managing payroll can be complex, especially with changing regulations. An accountant can ensure staff are paid correctly, and superannuation obligations are met.
Finding the Right Accountant
Finding the right accountant isn’t just about qualifications; it’s about finding someone who suits your circumstances.
A great place to start is by seeking recommendations from friends, family, or colleagues.
1. Essential Qualifications and Registrations
Ensure that the accountant is a member of a professional body.
Membership in these bodies indicates that the accountant has an accredited tertiary qualification and adheres to professional standards.
The accountant must be a registered tax agent if you need assistance with tax returns. You can verify their registration on the Tax Practitioners Board Register.
They must hold an Australian Financial Services (AFS) licence to provide financial planning or investment advice. Always confirm these credentials to protect your interests.
2. Questions to Ask a Prospective Accountant
When meeting or speaking with an accountant for the first time, ask the following questions to ensure they are the right fit for you:
1. Qualifications and Experience
- What are your qualifications and registrations?
- Which professional bodies are you a member of?
2. Services and Specialties
- What services do you offer, and do you specialise in any particular areas of tax or accounting?
- Who makes up your main client base (e.g., individuals, small businesses, specific industries)?
3. Fees and Paperwork
- What are your fees, and do you offer different payment options (e.g., deducting from a tax refund)?
- How do you prefer to handle paperwork—through templates, specific software, or other methods?
4. Handling Your Account
- Who will look after my account—will it be you, or will my work be passed on to a junior accountant?
- Where are you located, and do you offer remote services?
5. Complaint Resolution
- How do you handle complaints if something goes wrong?
Choosing the right accountant is an investment in your financial future.
Whether you’re an individual with a straightforward tax situation, a freelancer navigating complex deductions, or a business owner managing multiple financial responsibilities, the right accountant can save you time, money, and stress.
By thoroughly vetting potential accountants—ensuring they have the right qualifications, experience, and a client-centred approach—you’ll set yourself up for financial success and peace of mind.
