Working with accountants, bookkeepers and tax agents

Many financial professionals will be able to meet both online and in person. If face-to-face meetings are important to you, or if you're a new business owner who needs a more detailed understanding of your finances, you may prefer to meet in person.

Digital platforms such as video conferencing can also be an effective way to communicate and will broaden your choice.

Accountants

Your accountant should belong to a professional accounting body such as:

• Chartered Accountants Australia and New Zealand
• CPA Australia
• Institute of Public Accountants.

Chartered accountants are qualified professionals who have completed degree-level study along with workplace experience and a professional competence program. A chartered accountant will have greater experience and knowledge and be able to add value to your business from the start. They can help you plan for growth and manage tasks such as getting a loan or audits.

Tax accountants must be registered with the TPB. Search the tax practitioner register to make sure your accountant is registered.

Accountants who aren't certified, chartered, or registered can do basic bookkeeping, tax preparation and general financial management, but you should be aware of their limitations. Ensure you do your research and choose an accountant that meets your needs.

Bookkeepers

Bookkeepers must be qualified and registered with the TPB to provide BAS agent or tax agent services. They must maintain their skills through continuous professional education and be a member of 1 of the following professional bodies:

• Australian Bookkeepers Association
• Institute of Certified Bookkeepers
• Association of Accounting Technicians.

Find a registered bookkeeper using the TPB register.

Financial advisers

Financial advisers are registered with the Australian Securities and Investments Commission's financial advisers register and require an Australian Financial Services Licence.

When choosing a financial professional consider whether they:

• are experienced in preparing tax returns and financial documents for businesses of a similar size and revenue
• have worked with businesses in similar market sectors so they understand the unique needs of your business
• understand cloud computing, especially if you use cloud-based software for much of your business
• have worked with larger clients so they are equipped to handle your growing needs over time.

Find out who else they work with to get a sense of the type of work they are doing. Speak to existing clients to source recommendations.

An accountant can help grow your business by providing expert advice in areas such as business planning, budgeting and cash flow.

Consult with business networks, Chambers of Commerce, associations and other business owners to help you choose the right person or service for your business. Make use of your networks, as their advice is usually free and can give you the confidence to make a decision.

Ask other small business owners for recommendations. Keep in mind that your business needs may be different to another business. For example, the ideal choice for a sole trader may not be suitable for a larger company with employees.

Social media, such as Facebook or LinkedIn, can be an excellent source of information. Ask your personal network directly or join business-based groups and ask for recommendations. Remember to always do your research before you commit.

Financial professionals can look after many tasks for you and handle almost every financial role within your business—from setting your business plan, to handling your invoicing, and filing your taxes. Make sure you clearly set out the scope of work you need from them. You may be able to handle some tasks yourself to minimise costs.

Make sure you think about:

• their cost and billing structure (hourly, retainer or fixed)
• whether you are willing to pay for simple data-entry tasks like processing invoices
• how much oversight of your finances you want
• proactivity and ability to provide advice to save you money.

You might choose to enter your basic accounts data in-house and then hand over to your accountant to handle the more complex tasks. This could include bank account reconciliation, filling out tax return forms, payroll and capital depreciation calculations.

Try and use accounting software that is compatible with the software used by your financial professional. This makes it easier and more secure to share data.

Good quality accounting software can simplify tasks such as invoicing—automatically sending invoices and keeping records. You can also easily provide secure access to your accounts.

Interview and compare financial professionals to determine which one is best for your business. Consider your options carefully, in particular:

• whether you can easily work together
• the processes and systems they use
• how much they are able to support your growth
• value for money.

Financial professionals can charge by the hour, monthly retainer, fixed fee or percentage of turnover.

Find out their:

• base fees
• additional fees (e.g. phone calls or travel time)
• billing cycles (monthly, quarterly or annually)
• invoice conditions.

You may decide to negotiate to get the best rate. Learn more about negotiating successfully.

You could combine fee structures such as an initial flat fee followed by a sliding scale based on turnover.