Most people can lodge a tax return themselves. The real question is whether doing it yourself is the best use of your time, and whether you are confident the return, BAS or business tax records properly reflect your position.
A tax accountant can help you organise information, identify issues early and prepare tax obligations with the right supporting records. That does not mean every person needs one every year. For a straightforward salary-and-wage return with no investments, no side income and well-organised records, self-lodgment may be perfectly reasonable.
The value of professional help tends to increase as your income sources, assets, business activities or reporting obligations become more complex. It can also be valuable when you simply want confidence that you have claimed what you are entitled to, without making claims that cannot be supported.
What a tax accountant can actually help with
A good tax accountant does more than enter numbers into a return. They help turn your financial information into an accurate picture of your tax position, while asking the questions that software prompts may not.
For individuals, this may include reviewing employment income, investment income, rental property records, capital gains events, deductible expenses and superannuation-related matters. For sole traders and small business owners, the work often extends to bookkeeping processes, BAS reporting, business income and expenses, payroll records, GST treatment, cash flow and year-end planning.
Depending on your circumstances, an accountant may help you:
– prepare and lodge income tax returns and activity statements
– review deductions and ensure work-related or business claims have a genuine connection to earning income
– separate private spending from deductible business expenditure
– identify records needed for property, shares, crypto assets and other investments
– reconcile accounting software, bank accounts, loans and owner drawings
– manage GST coding and correct reporting errors
– consider the tax treatment of contractor payments, employee benefits and superannuation obligations
– prepare company, trust or partnership tax returns
– identify when a more specialised tax, legal, financial planning or valuation adviser should be involved.
The most useful role is often preventative. It is usually easier to establish good records and make informed decisions before a transaction is finalised than to reconstruct the facts later.
It is also important to understand the difference between a general accountant and a registered tax agent. Tax agent services include advising on tax liabilities, obligations or entitlements, preparing tax-related information that a client is expected to rely on, or representing a client in dealings with the ATO. If you are paying someone for these services, check that they are registered with the Tax Practitioners Board.
The potential benefit is not just a bigger refund
“Maximising your tax return” should never mean claiming everything possible and hoping it is accepted. It means claiming legitimate deductions, offsets and tax positions that apply to your actual circumstances, with evidence to support them.
The general deduction rules focus on whether an expense was incurred in gaining or producing assessable income, or in carrying on a business for that purpose. They also prevent deductions to the extent an expense is private, domestic or capital in nature, unless another specific provision applies.
This is where many common errors begin. An expense may feel connected to work or business without being fully deductible. It may have a private component, be reimbursed by an employer, relate to an asset rather than an immediate expense, or need to be apportioned over time.
For employees, areas that often need careful consideration include:
– working-from-home expenses
– use of a phone, internet or computer for employment duties
– tools, equipment and professional subscriptions
– work-related travel and motor vehicle use
– education and training connected with current income-producing activities
– allowances and reimbursements
– income from a second job, freelance work or online activities.
For investors, the key issues may be broader than annual income and deductions. A sale, transfer, inherited asset, property improvement, share consolidation or change in use of a home can affect capital gains tax calculations. Records for an asset may need to be retained well beyond the year in which a purchase was made.
For business owners, deductions are only one part of the picture. Tax outcomes can also depend on how transactions are structured, when income is derived, whether an expense is business or private, and how company or trust funds have been used.
A tax accountant should not promise a particular refund. What they can do is make sure the return is based on a complete, properly considered set of facts rather than a rushed estimate.
Time savings can be substantial, particularly for business owners
Tax work is rarely limited to the time spent lodging a return. The larger task is gathering records, reconciling accounts, checking transactions, answering queries and fixing inconsistencies.
If your records are disorganised, tax time can quickly become a stressful exercise. Receipts may be scattered across inboxes, personal and business expenses may be mixed in one account, invoices may not match payments, and transactions may have been coded incorrectly throughout the year.
For a sole trader, this can mean losing valuable time that could otherwise be spent serving clients, quoting for work or managing the business. For a company or trust, the consequences can be more significant because there may be multiple bank accounts, loans, payroll obligations, asset purchases and distributions to consider.
An accountant can create a repeatable process rather than treating every EOFY as an emergency. That may involve:
– setting up sensible accounting software categories
– establishing a routine for uploading receipts and invoices
– reconciling bank accounts regularly
– reviewing aged debtors and creditors
– separating business and private transactions
– documenting loans, drawings and reimbursements
– scheduling BAS, payroll and year-end tasks in advance
– keeping supporting documents in an accessible digital file system.
The time-saving benefit is often cumulative. A few minutes spent correctly categorising a transaction when it occurs can prevent hours of investigation months later.
A common small business scenario
Consider a consultant who operates through a private company. During the year, they use the company card for software, client travel, business equipment and occasional personal purchases. They also transfer funds from the company account when cash flow is tight, intending to sort it out later.
At year end, the transactions are unclear. Some personal expenses have been coded as business costs, some transfers have no description, and the director loan account does not reconcile. The company may also need to consider whether payments, loans or benefits provided to a shareholder or associate could raise Division 7A issues.
With regular bookkeeping and accountant review, the consultant could have identified the private transactions early, kept clear supporting records and dealt with any loan arrangements before lodgment became urgent. The accountant’s value is not just preparing the return, it is helping the business avoid creating a problem in the first place.
Avoiding costly ATO mistakes is about records, not clever claims
The ATO expects taxpayers to keep records that explain transactions relevant to their tax affairs. For businesses, this includes records that explain income, expenses and other transactions relevant to tax obligations.
Good records do not simply protect you if the ATO asks questions. They also give you a more accurate view of how your business is performing and make it easier to make decisions about pricing, spending, staffing and cash flow.
Common mistakes that can lead to incorrect tax reporting include:
– omitting income because it was received through a payment platform, in cash or into a different bank account
– claiming private expenses as business deductions
– claiming the full cost of an expense that has both work and private use
– claiming an expense that was reimbursed
– treating capital purchases as ordinary expenses without considering the appropriate tax treatment
– overlooking investment income or capital gains events
– incorrectly reporting GST on sales or purchases
– claiming GST credits without the required documentation
– failing to keep adequate records for motor vehicle, travel or working-from-home claims
– leaving company loans, shareholder drawings or related-party transactions unexplained
– preparing trust or company records too late to properly consider the required documentation.
Errors may result in amended assessments, additional tax, interest or administrative penalties, depending on the circumstances. The ATO’s penalty framework is intended to encourage taxpayers to take reasonable care in meeting their tax obligations.
Using a registered tax agent does not remove the need for you to be involved. You still need to provide complete and accurate information, retain relevant records, read key documents and ask questions when something does not look right. A quality accountant will make the process easier, but they should not be expected to guess the purpose of unexplained transactions.
When professional advice is particularly worthwhile
There are times when the potential value of advice is higher because the rules interact or a decision may have long-term consequences.
You should strongly consider speaking with a tax accountant if you:
– have started a sole trader business or are moving from employment into self-employment
– operate through a company, trust or partnership
– have bought, sold, inherited or transferred property, shares, crypto assets or a business asset
– earn income from an investment property
– receive income from multiple jobs, contracting, consulting or online platforms
– have overseas income, overseas assets or international business dealings
– employ staff or engage contractors
– are registered for GST or need help with BAS reporting
– are considering buying equipment, a vehicle or other major business assets
– have made personal withdrawals from a private company
– need assistance with payroll, superannuation, FBT or contractor arrangements
– have received an ATO letter, review notice or request for information
– need to correct past tax returns or BAS statements
– are planning to sell a business, admit a new owner or restructure business operations.
This does not mean every situation requires complex tax planning. Sometimes the best advice is simple: keep better records, make a correction, document an arrangement or avoid a transaction that creates unnecessary risk.
For more complex matters, your accountant may work alongside other professionals. For example, a business sale may require legal advice on sale documents, valuation advice on asset values and financial advice where investment decisions are involved. A good adviser knows where their role ends and when a broader team is needed.
How to choose the right tax accountant
Technical knowledge matters, but so does the way an accountant works with you. Tax is more effective when your adviser understands how you earn income, how your business operates and what you are trying to achieve.
Start by checking that the person or firm is properly registered to provide the services you need. You should also ask how they communicate, what records they require, what is included in their fee and whether they provide support outside the annual tax return process.
Useful questions include:
– Are you registered to provide tax agent services?
– What information do you need from me to prepare an accurate return or BAS?
– How will you help me improve my record keeping during the year?
– Will you explain any major assumptions or tax positions before lodgment?
– Can you help with bookkeeping, payroll and BAS as well as income tax?
– What should I do if I receive correspondence from the ATO?
– Are there any issues in my current structure, records or processes that need attention?
Be cautious of anyone who encourages claims without asking for evidence, promises a guaranteed refund or suggests that personal expenses can simply be put through a business. A professional accountant should be prepared to explain their advice in plain English, including where the law is uncertain or where further information is needed.
The right support can make tax less reactive
A tax accountant is not essential for every Australian taxpayer, but professional support can be highly worthwhile when your tax affairs are more than straightforward. The biggest benefit may be the time saved, the stronger records created and the confidence that your reporting is based on a considered process.
For individuals, that may mean claiming legitimate deductions with appropriate evidence. For business owners, it can mean cleaner books, more reliable BAS reporting, better visibility over cash flow and fewer last-minute surprises at EOFY.
This article is general information only and is not personal financial or tax advice. Tax outcomes depend on your specific circumstances, so speak with a registered tax agent or accountant, such as, before acting on information that may affect your tax obligations.
If you would like help reviewing your tax position, setting up better bookkeeping processes or preparing for EOFY, the team at can provide advice tailored to your circumstances.