Choosing an accountant is not simply a matter of finding someone to prepare a tax return at EOFY. The right adviser can help you keep records in order, understand your obligations, make sound decisions as your business changes and avoid last-minute surprises.
For a sole trader, the need may begin with bookkeeping and BAS support. For a growing company, family trust or business with employees, the relationship can quickly extend to cash flow, payroll, GST, tax planning, company administration and longer-term business decisions. That is why it pays to choose carefully from the outset.
Start with the support your business actually needs
Before comparing accounting firms, take stock of where your business is now and what is making your financial administration difficult. An accountant who is an excellent fit for a straightforward individual return may not be the right fit for a business with a trust, multiple owners, employees or regular reporting needs.
Write down the jobs you want help with now, as well as the areas likely to matter over the next year or two. This will make initial conversations far more useful.
Depending on your circumstances, you may need support with:
– setting up or reviewing your business structure
– bookkeeping systems and software
– BAS preparation and lodgment
– GST, PAYG withholding and payroll processes
– annual financial statements and income tax returns
– managing ATO correspondence and payment arrangements
– business cash flow reporting and budgeting
– company compliance and ASIC-related administration
– tax planning before EOFY
– advice around trusts, business ownership changes or succession
– guidance on the tax aspects of buying, selling or restructuring a business.
It is also worth distinguishing between ongoing compliance work and business advice. Compliance work helps ensure records, reports and lodgments are handled correctly. Advisory work should help you understand what the numbers mean and what options are available to you.
A business owner who only wants annual accounts and a tax return may prefer a simple, efficient service. Another owner may need regular reporting, proactive contact and help interpreting margins, wages, stock or debtor balances. Neither approach is inherently better, but the service needs to match the business.
Check registration, authority and professional standing
A good first step is confirming that the person or firm is appropriately registered for the services you need.
In Australia, a person or business that charges a fee for tax agent services generally needs to be registered with the Tax Practitioners Board. Tax agent services can include preparing or lodging tax returns and other statements, providing tax advice that a client is expected to rely on, and representing a client in dealings with the ATO.
The Tax Practitioners Board maintains a public register. It can be used to check whether a tax agent or BAS agent is registered, whether conditions apply to their registration and whether certain public sanctions or breaches are recorded.
When you are considering an accounting firm, ask:
– Who will be responsible for my tax work?
– Is the firm registered as a tax agent, or is an individual within the firm responsible for the tax agent services?
– Who will prepare the work and who will review it?
– Can you explain the difference between the services provided by your tax agents, BAS agents and bookkeepers?
– If you assist with company administration, are you able to act as an ASIC registered agent where required?
– If I need personal financial advice about investments, insurance or superannuation products, do you have the appropriate authority or a referral process?
This last question matters. Accountants can provide valuable tax and business advice, but personal financial advice about particular financial products is a separate area with its own regulatory requirements. A reliable accountant will be clear about the boundaries of their services rather than trying to be everything to everyone.
Registration alone does not tell you whether a firm is the right fit, but it is an important foundation. It gives you a practical way to verify the provider before sharing sensitive financial information.
Look for relevant experience, not just a familiar industry label
Industry experience can be helpful, particularly where a business has specialised systems, regulations or commercial pressures. A hospitality business may have different payroll and rostering issues from a professional services firm. A construction business may need support with project costs and subcontractor records. A medical practice, retailer, online business and property investor will each have different reporting priorities.
However, do not choose an accountant solely because they say they work with businesses like yours. Ask how that experience translates into practical help.
Useful questions include:
– What types of businesses do you commonly assist?
– What are the financial or record-keeping issues you often see in businesses like mine?
– How do you help clients improve the quality of information coming from their bookkeeping system?
– What information would you expect from me each month, quarter or year?
– How do you approach a business that is growing, taking on staff or changing structure?
– Which matters would you refer to a lawyer, financial adviser, valuer or other specialist?
The strongest answer is usually specific without making unrealistic promises. It should demonstrate that the accountant understands the operational side of a business, not only the year-end tax return.
Be cautious if an adviser immediately recommends a structure or strategy without first understanding your income sources, ownership arrangements, commercial goals, family circumstances and record-keeping position. A company, trust or other arrangement may be suitable in some situations, but it is not a universal solution.
Good advice starts with questions.
Assess how the firm communicates and works with clients
Technical ability is essential, but communication is what often determines whether an accounting relationship works over time.
You should feel comfortable asking basic questions without worrying that you are wasting the accountant’s time. A capable adviser should be able to explain a complex issue in plain English, identify what is known and unknown, and tell you what information is needed before advice can be finalised.
During an initial meeting, notice whether the accountant:
– listens carefully before offering solutions
– asks about your business goals as well as your tax obligations
– explains the next steps clearly
– identifies deadlines or risks without using fear-based language
– is upfront when an issue needs further investigation
– provides realistic timeframes
– explains what they need from you to do their work properly.
Also ask how the firm prefers to communicate. Some business owners want scheduled meetings and detailed reports. Others value a quick phone call or secure online message when a question arises. Make sure the service model suits your style.
It is reasonable to ask how often you can expect contact and whether proactive reviews are included. For example, does the firm contact clients before EOFY to discuss relevant issues, or is the service mainly reactive once records have been finalised?
Neither model is wrong, provided it is clearly explained. Problems arise when a client expects regular strategic input but has engaged a firm for annual compliance only.
Make fees, scope and responsibilities clear from the beginning
A clear engagement letter is one of the best signs of a well-run professional relationship. It should explain what work the accountant will do, what is outside the agreed scope, how fees are calculated and what responsibilities remain with you.
The Tax Practitioners Board encourages written agreements or engagement letters because they help clarify expectations and reduce misunderstandings, particularly around services, fees and client responsibilities.
Before appointing an accountant, ask for clarity on:
– the services included in the quoted fee
– whether bookkeeping, BAS work, payroll support, annual accounts and tax returns are separately charged
– how additional work is approved and billed
– whether fees are fixed, estimated, hourly or charged under another arrangement
– the expected timing for routine work once complete information is provided
– who will contact you if records are incomplete or an issue arises
– how the firm handles urgent work and ATO deadlines
– what happens if you decide to change accountants.
Do not focus only on the lowest price. A low initial quote can become expensive if it excludes work you assumed was included, or if poor communication creates delays and rework.
At the same time, higher fees do not automatically mean better service. The goal is transparency. You should understand what you are paying for, when you are likely to be billed and what value the firm intends to provide.
Remember that your accountant can only work from the information available. You remain responsible for providing complete and accurate records, responding to questions and raising significant changes in your affairs. This may include changes to business ownership, new finance, employee arrangements, a new income stream, asset purchases, overseas dealings or plans to sell part of the business.
Consider technology, security and the quality of the day-to-day process
Most small businesses now rely on cloud accounting software, digital document storage and online communication. The right accountant does not need to insist on a particular platform simply because it is familiar to them, but they should be able to explain how their systems will support efficient, reliable work.
Ask practical questions about the process:
– Which accounting software do you support?
– Can you work with my existing system, or do you recommend changes?
– How will I send source documents and receive reports?
– What bookkeeping checks should happen during the year?
– How do you manage access when staff, bookkeepers and advisers need different levels of visibility?
– What is your process for correcting errors or reconciling old accounts?
– How do you protect client information?
Security deserves particular attention. An accountant may handle bank details, identity documents, tax file number information, payroll records and commercially sensitive reports. You should be comfortable with the firm’s approach to identity checks, secure document exchange, access controls and verification of changed bank account details.
Be wary of a provider who asks you to send sensitive documents through informal channels without explaining how they will be protected. It is also sensible to ask how the firm confirms instructions that involve payments, refunds or changes to bank account details.
Technology should make the process easier, not leave you feeling locked out of your own financial information. You should retain appropriate access to your accounting records and understand where important documents are stored.
Use the first meeting to test the relationship
An initial consultation is not just for the accountant to assess you. It is also your opportunity to assess them.
Bring a short summary of your business, your current structure, any existing accounting software and the areas where you need help. If you are changing firms, you may also want to explain what has not worked in the past. This gives the prospective accountant a fair chance to explain how they would approach the situation.
For example, imagine a small business owner who has grown from working alone to employing several staff members. Their bookkeeping is being completed inconsistently, BAS preparation is stressful and they are unsure whether the business structure still suits their plans. A suitable accountant would not simply quote for an annual return. They would first identify what records are available, clarify who is responsible for payroll and bookkeeping, consider the existing structure in context and set out a staged plan for bringing the business records up to date.
That approach is often more valuable than a quick answer. It shows the adviser is thinking about the immediate compliance work as well as the systems needed to support better decisions later.
After the meeting, ask yourself:
– Did I feel heard and understood?
– Did the accountant explain matters clearly?
– Were they realistic about timing, costs and uncertainties?
– Did they identify the limits of their role where appropriate?
– Can I see myself contacting this person when something changes in my business?
Trust is important, but it should be based on clarity, competence and consistency rather than a sales pitch.
The right accountant should grow with your business
The best accountant for your business is not necessarily the biggest firm, the cheapest provider or the one closest to your office. It is the adviser whose registration, experience, communication style, systems and service scope align with what you genuinely need.
Take time to verify credentials, compare the way firms work and make sure the engagement is documented clearly. A good accountant should help you meet your obligations while giving you a clearer view of your business finances and the decisions ahead.
can help you assess your accounting, bookkeeping and tax needs in the context of your business goals. A conversation can be a useful starting point if you are looking for advice that is practical, clear and tailored to your circumstances.
This article is general information only and is not personal financial or tax advice. Your circumstances may require specific advice, so speak with a registered tax agent or accountant, such as, before making decisions.