What does an accountant do? How they help your small business
Learn what an accountant does and how the right one can help your small business grow.
Written by Lena Hanna—Trusted CPA Guidance on Accounting and Tax. Read Lena's full bio
Published Friday 15 May 2026
Table of contents
Key takeaways
- An accountant does more than lodge your tax return. They prepare, analyse and manage your financial records so you can make confident decisions about your business.
- Australian accountants help you meet ATO obligations including BAS, GST, PAYG and superannuation, and can access extended lodgment deadlines through the special lodgment program.
- The right accountant acts as a strategic partner, helping you plan for growth, manage cash flow and stay compliant with ASIC reporting standards.
- Look for a CPA, CA or IPA-qualified accountant who is registered with the Tax Practitioners Board and understands your industry.
What does an accountant do?
An accountant prepares, manages and analyses financial records to help you understand where your business stands financially. They go well beyond tax time, acting as a strategic partner who guides your business decisions year-round.
For Australian small businesses, an accountant helps you meet your obligations under ASIC compliance standards and keeps your financial reporting accurate. They interpret your numbers so you can spot opportunities, reduce risk and plan ahead with confidence.
Whether you are launching a new venture or growing an established business, an accountant gives you the financial clarity to make informed choices. Think of them as your business's financial co-pilot, not just someone who fills in forms once a year.
Key accountant responsibilities
Your accountant handles a wide range of tasks that keep your finances on track and your business running smoothly. Here are the core responsibilities you can expect:
- Tax preparation and compliance: lodging your tax return, BAS and other ATO requirements on time and accurately. Your accountant can also help you prepare tax returns with fewer errors.
- Cash flow management: monitoring money coming in and going out so you always know your position. Good cash flow forecasting helps you avoid shortfalls before they happen.
- Budgeting and financial planning: setting realistic budgets and tracking your performance against them throughout the financial year.
- Bookkeeping oversight: reviewing your bookkeeping to make sure transactions are categorised correctly and your records are reliable.
- Business strategy and KPIs: identifying the metrics that matter most to your business and helping you track progress toward your goals.
- Debt management: structuring repayments, negotiating with lenders and keeping your debt under control as your business grows.
- Loan applications: preparing financial statements and projections that lenders need to assess your application.
- Staffing and payroll compliance: making sure you meet your superannuation, PAYG withholding and other employer obligations.
- Accounting software setup: helping you choose and configure the right tools so your financial data flows smoothly.
- Inventory management: tracking stock levels and costs so you can make smarter purchasing decisions. Learn more about inventory accounting and how it fits into your broader financial picture.
- Operational efficiency: reviewing your processes to find where you can save time and reduce costs.
- Technology integration: connecting your accounting software with other business tools so your data stays consistent across systems.
Types of accountants
Not all accountants are the same. In Australia, different designations and specialisations mean each type of accountant brings something different to your business.
CPA (Certified Practising Accountant)
A CPA holds a qualification from CPA Australia and has completed a rigorous program of study and practical experience. CPAs work across tax, audit, financial reporting and business advisory, making them a versatile choice for small business owners.
CA (Chartered Accountant)
Chartered Accountants are members of Chartered Accountants Australia and New Zealand (CA ANZ). They specialise in areas like tax, audit and financial management, and are known for deep technical expertise.
IPA (Institute of Public Accountants) member
IPA members often work closely with small businesses and sole traders. They provide practical, hands-on accounting support and many focus on tax compliance and small business accounting.
Registered tax agent
A registered tax agent is authorised by the Tax Practitioners Board to lodge tax returns on your behalf. They must meet ongoing education requirements and follow a strict code of conduct, giving you confidence your tax affairs are in safe hands.
Management accountant
Management accountants focus on internal financial planning and analysis rather than compliance. They help you build budgets, forecast performance and make strategic decisions based on your financial data.
Forensic accountant
Forensic accountants investigate financial irregularities and fraud. While most small businesses won't need one day-to-day, they can be invaluable if you face a dispute, insurance claim or suspected financial misconduct.
How accountants handle tax
Tax is one of the biggest reasons small business owners turn to an accountant. In Australia, your tax obligations go well beyond the annual income tax return.
Your accountant helps you manage your ATO obligations including Business Activity Statements (BAS), Goods and Services Tax (GST), Pay As You Go (PAYG) withholding and superannuation contributions. They make sure you lodge on time and claim every deduction you are entitled to.
If you use a registered tax agent, you may benefit from the special lodgment program. This gives your agent extended deadlines beyond the standard 31 October due date, giving you more time to get your affairs in order.
Beyond lodgment, a good accountant builds tax minimisation strategies tailored to your situation. They review your business structure, timing of income and expenses, and available concessions to reduce your tax bill legally.
Your accountant also reduces your audit risk by keeping thorough records and making sure your claims are properly documented. Strong record-keeping throughout the financial year (July to June) means fewer surprises and less stress at tax time.
How an accountant helps your small business
An accountant brings value at every stage of your business journey, from startup to scale-up. Here are some practical scenarios where the right accountant makes a real difference.
If you are launching a new business, your accountant helps you choose the right structure (sole trader, partnership, company or trust), register for GST and set up your financial systems from day one. Getting these foundations right saves you time and money down the track.
When you are ready to grow, your accountant helps you build financial projections and assess whether you can afford to expand. They review your numbers and highlight what needs to change before you take the leap.
Cash flow is often the biggest challenge for small businesses. Your accountant can create cash flow forecasts that show you when money will be tight, so you can plan ahead rather than react to problems.
If debt is weighing on your business, your accountant helps you prioritise repayments and negotiate better terms with lenders. They can also prepare the financial documentation you need for new loan applications.
Thinking about hiring your first employee? Your accountant walks you through payroll, superannuation, PAYG withholding and other employer obligations so you stay compliant from day one.
Your accountant also helps you set up and get the most from your accounting software, connecting it with your bank feeds, invoicing and other business tools. The right technology setup means less manual data entry and more accurate reporting.
Skills and qualifications to look for in an accountant
Choosing an accountant is a big decision, so it helps to know what qualifications and skills to look for.
Qualifications
Look for a CPA, CA or IPA designation. These mean your accountant has completed recognised study, passed professional exams and commits to ongoing professional development. If you need someone to lodge your tax returns, make sure they are registered with the Tax Practitioners Board as a registered tax agent.
Technical skills
Your accountant should be comfortable with cloud accounting software and able to work with your existing tools. Ask about their experience with the technology your business uses and whether they can help you improve your systems.
Soft skills
Numbers matter, but so does communication. A good accountant explains complex financial information in plain language you can act on. They listen to your goals, ask the right questions and give you advice that fits your situation.
Industry experience
An accountant who understands your industry already knows the common challenges, compliance requirements and opportunities relevant to your business. Ask whether they work with other businesses in your sector.
Questions to ask when interviewing
When you meet a potential accountant, consider asking:
- What qualifications and registrations do you hold?
- Do you have experience with businesses in my industry?
- What accounting software do you work with?
- How do you communicate with clients and how often?
- What is your fee structure?
How to find the right accountant
Finding the right accountant takes a bit of research, but it is worth the effort. Here are some practical ways to start your search.
Word of mouth is one of the most reliable methods. Ask other small business owners, your business network or your bookkeeper for recommendations. Personal referrals give you honest insight into what it is like to work with a particular accountant.
Professional body directories are another great resource. CPA Australia, CA ANZ and the IPA all have searchable directories where you can find qualified accountants in your area.
You can also search the Xero advisor directory to find accountants who are experienced with Xero and can hit the ground running with your existing setup.
When comparing your options, consider their qualifications, industry specialisation, technology proficiency and whether you feel comfortable talking to them about your finances. The best accountant-client relationships are built on trust and open communication. For a more detailed guide, check out how to choose an accountant for your business.
Manage your business finances with Xero
The right accounting software complements a good accountant by keeping your financial data organised, accurate and accessible in real time. When your accountant can see your up-to-date numbers at any time, they spend less time chasing paperwork and more time giving you strategic advice.
FAQs on accountants
Here are answers to frequently asked questions about accountants.
What is the main job of an accountant?
An accountant's main job is to prepare, manage and analyse your financial records. They help you understand your business's financial position so you can make confident, informed decisions.
What are the main duties of an accountant?
Accountants handle tax preparation and lodgment, cash flow management, budgeting, bookkeeping oversight, payroll compliance and business advisory. They also help with loan applications, financial reporting and technology setup.
What's the difference between an accountant, bookkeeper and tax agent?
A bookkeeper records your day-to-day financial transactions. An accountant analyses those records, provides strategic advice and prepares financial reports. A registered tax agent is specifically authorised to lodge tax returns on your behalf. Many accountants are also registered tax agents. You can learn more about the difference between bookkeeping and accounting.
When should I hire an accountant for my small business?
Consider hiring an accountant when you start your business, outgrow your own bookkeeping skills, face complex tax situations or plan to grow. Even if your finances seem straightforward, an accountant can often save you more than their fee by finding deductions and improving your financial systems. Read more about when to hire an accountant.
What qualifications should I look for in an accountant?
Look for a CPA, CA or IPA designation, which means they have completed recognised professional training. If you need someone to lodge your tax returns, check that they are registered with the Tax Practitioners Board as a registered tax agent.
How much does an accountant cost in Australia?
Accountant fees in Australia vary depending on the complexity of your needs, your location and the accountant's experience. Some charge hourly rates (typically $150 to $400 per hour), while others offer fixed-fee packages for services like annual tax returns or monthly bookkeeping. Ask for a clear fee structure upfront so there are no surprises.
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Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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