Choosing an accountant is a big decision for a start-up or small business. A good accountant uses what they know to help you manage tax and free up cash.
Here are five things to think about before you choose one.
1. What do you need?
Your business may be at a stage where you can manage with occasional help. As it grows, you'll want someone to lodge returns and activity statements, run payroll, prepare the year's accounts and keep you up to date on tax.
2. Experience and registration
Has the accountant worked with businesses like yours? A sole trader, a partnership, a trust and a company each have different rules and records. Anyone you pay to prepare and lodge tax returns must be a registered tax agent, and anyone you pay to prepare activity statements must be a registered BAS or tax agent. Check on the Tax Practitioners Board register at tpb.gov.au, and ask for references.
3. Scope of work
Write down what you expect your accountant to do, from financial statements to tax returns, activity statements and dealing with the ATO for you. Agree it at the start, in an engagement letter, to avoid disputes later.
4. Timing
Do you want help all year, or mainly at year-end when tax returns are due?
5. Software
Check that the accountant works in your accounting software, and keeps up with its current version.
Your energy belongs on the business. With a good accountant and a clear view of your finances, you can make decisions with more confidence.