Ruqayyah Snyder
Choosing an accountant is a crucial decision that can impact your business's financial success and growth. A good accountant will not only manage your accounts but also proactively advise you on practical business issues, helping you avoid costly mistakes. When selecting an accountant in Australia, it's essential to consider their qualifications, experience, specialisation, and compatibility with your business needs. Here are some key factors to keep in mind when making your decision.
| Characteristics | Values |
|---|---|
| Qualification | The accountant should have a qualification and be a member of an accounting body. |
| Experience | The accountant should have experience in the services you require and with clients similar to you. |
| Trustworthiness | You should be able to trust your accountant and feel comfortable with them. |
| Proactiveness | A good accountant should be proactive and help you save money. |
| Tech-savviness | The accountant should be tech-savvy and use up-to-date software and technology. |
| Specialisation | Choose an accountant whose specialisation aligns with your specific needs. |
| Fee structure | Understand the fee structure and the total cost upfront. |
| Location | Consider whether you prefer an online or local accountant. |
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What You'll Learn
Qualifications and experience
To be a member of a professional association, an accountant must have an appropriate qualification, abide by certain standards, and undertake regular professional development. You can find lists of qualified accountants at cpaaustralia.com.au and publicaccountants.org.au. It is also important to check that your accountant is a registered tax agent, as only registered tax agents can prepare and lodge tax returns and give tax advice.
Beyond qualifications, the experience is crucial. A good accountant should have experience working with companies in similar market sectors and with similar needs to yours. This will help them understand the unique requirements of your business. Ask for a client list detailing each company's gross revenue and number of employees, and find out how their clients have grown and developed over the years. This will give you a sense of whether they can handle your evolving needs.
If your company uses cloud-based software, look for an accountant who is tech-savvy and familiar with cloud computing. They should be able to use up-to-date software and technology to manage your accounts efficiently and accurately. Additionally, consider whether you prefer face-to-face contact or are comfortable working remotely with an online accountant. Ensure that their style of operating and communicating works well for you and that they can clearly articulate how they can assist with your particular circumstances.
Finally, a good accountant should be proactive and well-connected. They should be able to offer advice and referrals to help your business grow and save money. Ask what they suggest to save your business money and how they plan to access your records. They should be able to recommend practical assistance with managing your books and ensure you have the necessary checks and balances in place.
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Specialisations and services
When choosing an accountant in Australia, it is important to consider their qualifications, specialisations, and the services they offer.
Qualified professional accountants in Australia are regulated by professional bodies, the two largest ones being Chartered Accountants Australia New Zealand (CAANZ) or Certified Practising Accountants (CPA). To be a member of a professional association, an accountant must have an appropriate qualification, abide by certain standards, and undertake regular professional development. They can only give you tax advice if they are a registered tax agent and can only provide financial planning advice if they have an Australian Financial Services licence or are an authorised representative of a licence holder.
Accountants can specialise in various areas, including individual tax returns, small business accounting, or corporate tax planning. Some may focus on basic accounts data, while others handle more complex tasks such as bank account reconciliation, payroll, and capital depreciation calculations. They might also offer business advice and assist in the financial management of your business.
When choosing an accountant, consider the services you require. For example, do you need help with bookkeeping, IT support, or industrial relations assistance? Do you want them to complete your annual accounts and tax returns, or provide advice on your business structure? A good accountant will be well-connected and able to refer you to their business partners with the required expertise if you need services outside their scope.
It is also important to consider the accountant's experience and whether they have worked with companies in similar sectors or with similar needs to yours. This will help them understand the unique needs of your business and ensure they can handle your evolving needs.
Finally, ensure you clarify the fee structure and understand what services are included to avoid unexpected costs.
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Compatibility and communication
It is important to choose an accountant who understands the unique needs of your business. This includes having experience working with companies in similar sectors and of a similar size to yours. For example, if your company uses cloud-based software, your accountant should be tech-savvy and familiar with cloud computing.
You should also consider the accountant's style of operating and whether it suits your needs. For instance, do they hold information sessions or provide regular newsletters to advise small business clients?
Communication is extremely important in the client-advisor relationship. Choose an accountant who can articulate information in a way that is easy for you to understand. They should never make you feel inadequate or silly.
Additionally, it is crucial to clarify the fee structure and understand what services are included to avoid unexpected costs. The accountant should be flexible and not insist on a particular fee structure.
Finally, trust your instincts and choose an accountant you feel comfortable and confident in. You will be working closely with them, so it is important to find someone you can build a strong working relationship with.
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Cost and fee structure
The cost of hiring an accountant in Australia depends on several factors, including the complexity of your financial situation, the specific services you require, and the accountant's pricing structure.
Cost Factors
The more intricate your financial situation, the higher the fees. For example, managing multiple income streams or investment properties typically costs more than a simple individual tax return. Business owners often pay more than employees, and company structures usually require more support than sole traders.
The accountant's qualifications and experience also influence the cost. Highly qualified accountants with extensive experience often charge more for their expertise, but their knowledge can save you money in the long run.
Pricing Structures
Accountants in Australia typically charge either hourly rates or fixed fees. The average hourly rate ranges from $100 to $300, while fixed fees for essential services might start at $500 and increase depending on complexity. Some accountants may also charge per project or task, or a monthly retainer fee.
Tips for Cost Savings
To save on costs, consider the following:
- Compare quotes from multiple accountants and explore online-only options or mid-tier firms, which may offer more competitive pricing.
- Opt for accounting software that meets Australian standards, such as Xero, MYOB, or QuickBooks.
- Maintain a dedicated "tax folder" to summarise your income and expenses before meeting your accountant.
- Attend free ATO webinars to educate yourself on basic accounting and tax principles.
- If you have a simple tax return, you might use a registered tax agent through the ATO's lodgment program, which can be more cost-effective.
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Location and technology
When choosing an accountant, it is important to consider the location and whether they have a good understanding of your local area. Local CPAs, for example, can help unlock a wide variety of opportunities for your business.
You should also consider the size of the practice and whether it is comparable to your business. Smaller practices may be better suited to smaller businesses.
In terms of technology, you should ask the accountant about their familiarity with the accounting software package you use in your business. If they are not familiar with it, establish how information will be accessed and shared. It is also important to ask about their cybersecurity policies and whether they have cybersecurity insurance. Ensure that you will be given full access to all your business data.
Additionally, ask about how you will submit your paperwork. For example, find out if they use a template or specific software.
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Frequently asked questions
In Australia, qualified accountants are regulated by professional bodies such as Certified Practising Accountant CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA). They should also be registered tax agents to prepare and lodge tax returns.
Ask about their experience with similar clients and services, and request references from current clients. Inquire about their approach to staying updated with changes in their clients' circumstances and how they plan to access your records. Discuss their familiarity with accounting software and cloud computing, especially if your business uses cloud-based software.
Meeting face-to-face can help build a stronger working relationship. A local accountant will also have a deeper understanding of local tax laws and regulations, which can be beneficial for personalised services.
While accountants can provide valuable expertise, it's important to understand the financial basics of your business. You can use accounting software to manage basic accounts data in-house and then hand over more complex tasks to your accountant. This software can also provide easy access to your accounts for your accountant.
A good accountant will be proactive and offer suggestions to save your business money. They will be well-connected and able to refer you to business partners with specialised expertise when needed. They will also be clear and transparent about their fee structure and provide a written estimate.
