What does an accountant do? 14 ways they help you today

Published Tuesday 24 March 2026

Table of contents

• What does an accountant do?
• 14 things you didn't know an accountant could do
• And let's not forget tax
• What does an accountant do? They make business better
• How to find an awesome accountant
• FAQs on accountants

Key takeaways

• Recognise that modern accountants offer strategic business services beyond basic tax preparation, including cash flow management, business planning, technology setup, and operational efficiency improvements that can transform your business operations.
• Utilise your accountant as a financial partner for critical business decisions like startup planning, loan applications, hiring strategies, and growth planning rather than just for year-end compliance tasks.
• Implement automated accounting systems and cloud-based software with your accountant's help to streamline invoicing, expense tracking, payroll, and financial reporting, which saves time and reduces manual errors.
• Choose an accountant based on both professional qualifications (like CPA or CA credentials) and personal compatibility, as you'll need frank conversations about your business finances and strategic direction.

What does an accountant do?

An accountant prepares, manages, and analyses financial records for a business. They ensure your finances are accurate and that you're meeting tax obligations, which is crucial as financial reports must often be certified to confirm they comply with accounting standards and provide a true and fair view of the company's financial position.

Think of them as a financial partner who helps with everything from day-to-day bookkeeping to long-term strategic planning.

14 things you didn't know an accountant could do

Accountants offer a wide range of services. Beyond tax returns, they provide strategic advice, find ways to save money, and help boost your revenue.

Here's what a great accountant brings to your business:

• Strategic guidance: advice on growth, pricing, and business decisions
• Cost savings: identifying inefficiencies and reducing expenses
• Time savings: automating administrative tasks so you can focus on your core work
• Confidence: clearer financial visibility for better decision-making

So what does an accountant do? The question is what don't they do.

1. Launch a startup

Starting a new business can be exhilarating, but it takes more than a good idea. You need to know it will make money, and you need to convince investors and lenders of the same thing. An accountant can do that for you.

How accountants help startups:

• Test your business idea for financial viability
• Identify startup and operating costs
• Create credible revenue forecasts
• Connect you with the right lenders
• Refine your pitch to impress investors

2. Help with business strategy

There are so many moving parts in a business. Sometimes it's hard to know where to focus. Accountants can help you figure out what's important.

They'll work with you to set goals (personal, professional and financial) then give you tools to measure your progress. You'll end up with a set of key performance indicators (KPIs) that tell you how your business is doing.

If you have accounting software, your accountant will set up dashboards that let you check your KPIs at any time. And if things aren't going as planned? They'll help you troubleshoot issues, test solutions, and reset your KPIs as needed.

3. Fix your cash flow

Accountants help you predict and manage cash flow so you never run out of money at the wrong time. Many profitable businesses fail because they can't afford to pay suppliers or staff when payments are slow to come in.

Accountants know that revenue and costs ebb and flow. They'll help you:

• predict cash flow effects before they become problems
• organise cash reserves for lean periods
• create a spending plan that keeps money in the bank

The result? Less stressful paydays, easier supplier relations, and deeper sleep.

4. Listen and support you

Being in business is tough. It can be lonely, too. When things seem too hard, and you start thinking about the cosy nine to five you left behind, a top accountant can keep your head in the game.

They know how much your business means to you. They'll reassure you, help you reset, and break down big problems into manageable parts. Giving moral support is an important part of what accountants do.

5. Manage your debt

There's good debt and bad debt. Your accountant can help you tell one from the other. They'll find the least expensive borrowing strategies for your business, with the right mix of repayment flexibility and low interest. If you need refinancing, they'll take care of that too.

Accountants will also advise when you should use spare cash to pay back loans, and when you should reinvest it in the business. They'll consider your specific numbers and debt structure to develop a personalised strategy for you, not blanket advice.

6. Deal with unpaid invoices

Unpaid invoices are a fact of business. Chasing debtors is a distraction you don't need, but you can't afford to ignore the problem. Your accountant can take the headache away.

Here's how they help:

• Automated reminders: Invoice systems that notify customers when bills are due or overdue
• Direct follow-up: Some accountants will call businesses that don't respond to emails
• Debt financing: If invoices remain unpaid, your accountant can arrange for a business to buy your unpaid invoices and chase payment themselves

7. Write and pitch loan applications

Applying for a loan is both an art and a science. A good accountant will do more than just pull together your numbers. They can help you craft a compelling story.

Lenders need to see solid financials and credible forecasts, but that's just the beginning. An accountant will tie it all together in a presentation that sells the wider vision for your business.

You'll get visual presentations instead of spreadsheets. You'll be armed with graphs and charts that visualise the numbers, allowing your lender to literally see the opportunity. And they'll use forecasting tools that loan officers trust.

8. Budget smartly

Detailed budgeting can eat up a lot of your time and energy. As a result, many businesses end up working off a vague set of numbers full of assumptions and estimates.

Your accountant can help you produce a rigorous, accurate budget that gives you real confidence. You'll know:

• the real cost of doing business
• how much money you can reinvest
• what you can pay yourself

9. Get you staffed up

Do you need hired help, but aren't sure where to start? Your financial advisor can step in here too.

• Hiring strategy: Figure out what sort of hire will boost business the most, such as a sales person or a technician
• Cost analysis: Work out the cost of hiring, training, and paying an employee to make sure you can afford it
• Payroll compliance: Help you get payroll right, including government paperwork, tax, and insurance requirements

10. Set up your cloud accounting software

Your accountant will automate a lot of your business's accounting so that sales and expense data flows directly into your accounts. They'll also set you up with invoicing systems that tell you what's been paid and what hasn't. Smart software will even send reminder emails to clients who haven't paid so you don't have to.

There are dozens of other automated systems they can set up for you:

• Cash flow dashboards: Always know where you stand
• KPI tracking: Check overall business performance 24/7
• Automated accounts payable: Stay on top of expenses
• Mobile accounting apps: Manage your finances from the road

11. Help you manage inventory

Do you spend a lot on storage, or lose money writing off obsolete or damaged goods? Or do you sometimes lose revenue because you run out of inventory? is critical to doing good business.

Your accountant can help by:

• Identifying holding costs: Understand what inventory is really costing you
• Predicting inventory needs: Review sales data to place accurate orders
• Setting up automation: Track inventory levels and auto-order items as they run low

12. Make your business zing with efficiency

Accountants identify unnecessary costs and help you develop more efficient ways of working. The cost of doing business can climb quickly with things like:

• storage (physical or IT)
• energy (electricity, gas, utilities)
• staff (and downtime)

If you'd rather focus your time and expertise elsewhere, an accountant can think about these costs strategically for you.

13. Unlock the power of technology

Smart business software can automate a lot of the things you do manually. An accountant can take away those distractions by setting up affordable software for things like:

• staff scheduling and time recording
• point of sale
• taking payments
• customer relationship management
• invoicing
• payroll

Automating business processes takes away pain, lowers costs, and ensures everything runs smoothly.

Find a tech-savvy accountant who knows about business apps.

14. Bring some fun into your business – honestly

What does an accountant do? The easy answer used to be that they wore suits and sat behind big desks. Today's accountants are different.

Many modern accountants have interesting backgrounds and will come into your workplace to see how your business works. Check out accountant and bookkeeper stories to learn about financial advisers who come from rock bands, orchestras, and cheerleading troupes.

It's easier than ever to find an accountant you relate to on both a personal and professional level, and they can make all the difference to how you run your business.

And let's not forget tax

There's more to tax than completing and submitting your returns. A great accountant helps you minimise what you owe and stay compliant. For example, the Australian Taxation Office notes that most registered tax agents have a special lodgment program, allowing them to lodge returns for clients after the standard 31 October deadline. They will:

• lower your tax exposure
• resolve old tax debts
• fix poor record-keeping
• reduce your audit risk
• ensure your books are watertight if you're audited

What does an accountant do? They make business better

If your current accountant is going through the motions, you'll be amazed at the difference a top accountant can make. They can bring valuable skills and insight to your business.

So what does an accountant do? It's whatever you need. Because if they can't solve your business problem themselves, they'll know who can.

When looking for an accountant, consider more than their knowledge and skill. You should be able to have very frank conversations with them so find somebody you like. You can find an accountant that's easy to get on with and can do all of these things for you.

And when you find them, they'll work best with the right tools. Xero's cloud accounting software helps accountants and business owners work together seamlessly. Get one month free and see how the right software supports better accounting relationships.

How to find an awesome accountant

A recommendation from someone you respect and trust is the best starting point. Ask friends, family, and business partners what they think of their accountants.

You also have other options. The Xero advisor directory features progressive accountants that offer a wide range of services and understand the power of business software.

Check out the advisor directory to find an accountant that meets your needs.

FAQs on accountants

Here are answers to common questions about accountants and what they do for small businesses.

What is the main job of an accountant?

An accountant's main job is to manage your business finances and ensure tax compliance. Beyond this, they provide strategic advice on cash flow, growth planning, and business efficiency to help you make better financial decisions.

What are the main duties of an accountant?

Accountants handle a range of financial tasks for your business. Core duties include:

• preparing and lodging tax returns
• managing bookkeeping and financial records
• producing financial reports and statements
• advising on cash flow and budgeting
• helping with business planning and strategy
• setting up and managing accounting software
• ensuring regulatory compliance

What's the difference between an accountant, bookkeeper, and tax agent?

These three roles handle different aspects of your finances.A bookkeeper records daily transactions and maintains your financial records. An accountant analyses your finances, prepares reports, and provides strategic advice. A tax agent is specifically registered with the Tax Practitioners Board to lodge tax returns on your behalf, and according to the ATO, they are the only people that can charge a fee to provide this service. Many accountants are also registered tax agents.

When should I hire an accountant for my small business?

Consider hiring an accountant when your finances become too complex or time-consuming to manage yourself. Common triggers include reaching consistent revenue, preparing for growth, needing help with tax planning, or feeling overwhelmed by financial admin. Even new businesses benefit from an accountant's guidance on structure and compliance from day one.

What qualifications should I look for in an accountant?

Look for accountants with recognised professional credentials, as these designations often signify a high level of expertise.

The CPA program, for example, combines both education and practical experience to give accountants a strong understanding of modern business issues. In Australia, this includes CPA (Certified Practising Accountant), CA (Chartered Accountant), or IPA (Institute of Public Accountants) membership. If you need someone to lodge your tax returns, ensure they're a registered tax agent with the Tax Practitioners Board.