How To Find The Best Business Accountant for Your Small Business

Introduction

As a small business owner, you understand the importance of sound financial management when running a business. Your business’ success hinges not just on your products or services, but also on how well you manage your finances. This is where a business advisor becomes essential. A qualified accountant can help you navigate the complexities of your financial landscape, allowing you to focus on not just minimising taxes, but growing your business.

This guide will help you understand what a business accountant does, how they can benefit you and how to find the right one for your needs.

What is a Business Accountant?

A business accountant is a professional who provides financial services specifically tailored for small and medium-sized businesses. They play a crucial role in ensuring that your financial records are accurate and compliant with Australian regulations.

Services they typically provide include:

1. Financial Reporting: Preparing financial statements that reflect your business’s performance.

2. Strategic Tax Planning: Developing strategies to minimise small business tax liabilities while ensuring compliance with the tax system.

3. Bookkeeping Services: Maintaining accurate records of all financial transactions.

4. Budgeting and Forecasting: Helping you plan for future financial performance.

Running a small business is hard and having a qualified accountant involved is vital (every small business should have one!). They not only help you stay compliant but also provide insights that can drive your business growth.

How Does a Business Accountant Help Businesses in Australia?

The best small business accountants will offer several key benefits that can significantly impact your business operations.

A. Financial Management

• Budgeting and Forecasting: They assist you in creating budgets and forecasts that guide your spending and investment decisions. Forward-looking projections are important if you wish to operate a successful business.

• Cash Flow Management: Accountants develop strategies to manage your cash flow effectively, ensuring that your small business finances have enough liquidity to meet your obligations.

B. Tax and Compliance

• Compliance with Tax Laws: They ensure that your business complies with all relevant accounting and tax requirements, reducing the risk of penalties and giving you peace of mind.

• Minimising Tax Liabilities: Accountants support your business by devising strategies to legally minimise your tax burden, allowing you to reinvest more into your business.

C. Business Growth and Strategy

• Identifying Growth Opportunities: They analyse your financial data to identify areas for growth and improvement. This could include things like outgrowing your current business structure or just streamlined ways to run your small business accounting and bookkeeping processes.

• Financial Decision Support: Accountants provide business advice on tax implications of investments and financial decisions that align with your goals and help grow your small business.

D. Time-Saving

• Outsourcing your tax and accounting tasks frees up your time. Handing off your bookkeeping on a project basis is a great example of everyone playing their position and often comes in much cheaper than the cost to hire a full-time accountant internally ($) or the time-cost (so also $) of the business owner performing these tasks.

• You can focus on growing your business and on what you do best — running your business. Leave it to your accountant to ensure the numbers are up to date.

Difference Between a Business Accountant and a Personal Tax Accountant

Business and personal tax are different things. Understanding the distinction here is crucial.

A. Business Accountants

• Scope of Services: Business accounting specialists focus on business-related financial matters first and foremost, including financial reporting, tax compliance, and strategic planning. They can do so much more than a tax return.

• Expertise and Qualifications - Typically hold qualifications such as CA (Chartered Accountant) or CPA (Certified Practising Accountant). They have specialised training in business finances, and are required to undertake ongoing training each year (typically 40 hours) to maintain their qualification. This keeps them up to date with constantly changing tax legislation and the latest business strategies, so that they can help you get the best outcome for your business.
  In the Australian business context, really great cloud-based accounting experts will be able to recommend accounting software specific to your industry in order to provide you with accounting services for small businesses (including business advisory). In short, they can help you work smarter rather than harder by getting technology to do the heavy lifting.

B. Personal Tax Accountants

• Scope of Services: Specialise in individual tax returns and personal tax services.

• Expertise and Qualifications: This type of accountant may not have the systems or same level of expertise in business accounting and often focus on personal finance issues.

How to Find the Best Accountant for Your Small Business

Finding the right professional involves several steps.

A. Identify Your Business Needs

Start by assessing the specific accounting needs your business requires. Consider whether you need assistance with tax planning, financial reporting, or bookkeeping.

B. Research and Recommendations

Utilise online resources and your professional network to gather recommendations. Look for accountants who have experience with businesses similar to yours.

C. Evaluate Qualifications and Experience

Check the qualifications of potential accountants. As mentioned previously, training, experience and familiarity with your industry all weigh into the expertise of the right professional accountant for your needs.

D. Interview Potential Candidates

Prepare a list of questions to ask during the interview. Key areas to cover include:

• Experience with businesses of your size and type.

• Services offered and their approach to tax planning.

• Fees and billing structure (depending on the complexity, they should be able to personalise these to your budget).

Things to Avoid When Choosing a Business Accountant

When considering professional partners, be mindful of common pitfalls.

A. Ignoring Credentials and Experience

Hiring unqualified business tax accountants can lead to costly mistakes. Always verify their credentials and experience.

B. Focusing Solely on Fees

While cost is important, it should not be your only consideration. You should think of a good accountant as more of an investment than an expense. Look for value and expertise rather than just the lowest price, and remember the old adage that free/cheap advice can be the most expensive advice you ever get!

C. Not Considering Compatibility

Your accounting team should understand your business culture and goals in order to help your business grow. A good working relationship is essential for effective collaboration and you should enjoy working with your accountant towards achieving your goals.

Questions to Ask a Potential Tax Accounting Partner

When interviewing potential accountants, consider asking the following questions:

• What is your experience with businesses in my industry?

• Besides a tax return, what else are you able to help me with?

• How do you stay updated with changes in tax laws?

• What is your approach to business communications? How often will I hear from you?

• How much does it cost?

Transparency and clear communication are hugely important in all of the above and you should feel comfortable to ask questions.

Conclusion

Choosing the right accounting specialist is critical. Make sure your business is set up for success by involving a qualified accountant who can provide valuable insights, ensure compliance, and help you achieve your financial goals.

Take the time to research and evaluate your options carefully, and then contact us today. At Back Beach Accounting, we're business accountants helping small to medium businesses and understand the unique challenges they face. We’re based in Coffs Harbour but work with business owners in Sydney, Brisbane, the Gold Coast and throughout Australia (FYI: you're no longer limited to working with an accountant based in your hometown). We’re here to provide a personal service and help you realise the success of your business.

If you're looking for expert small business accounting and tax advice, our team is here to help!