Hire accountant: when to get help for your business

Published Tuesday 24 March 2026

Table of contents

• Challenges for growing small businesses
• What to look for when hiring an accountant
• You'll need an accountant to help with the finances
• Hire an accountant when you have to deal with the government
• You'll need an accountant when you apply for a business loan or overdraft
• When your company is growing, hire an accountant
• Hire an accountant when you're ready to delegate
• Questions to ask before you hire an accountant
• Accountants can help you every step of the way
• FAQs on hiring an accountant

Key takeaways

• Hire an accountant when setting up your business structure, as the choice between sole trader, company, or partnership significantly affects your taxes, personal liability, and growth options.
• Verify that your accountant holds recognised qualifications like CPA or CA credentials and is registered as a tax agent, as only registered professionals can legally charge fees for tax services.
• Choose an accountant who uses cloud-based accounting software compatible with your systems, enabling real-time collaboration and faster access to financial reports and data.
• Engage an accountant before major business events like loan applications, audits, buying or selling a business, as their professional documentation and expertise significantly improve your outcomes and credibility.

Challenges for growing small businesses

Growing businesses face key moments when professional accounting help pays off. From business plans to loan applications, an accountant can make each step easier.

You don't always need a full-time accountant. Sometimes a few hours of their time is enough.

The real cost of DIY accounting includes:

• Time investment: Spending 10 hours on taxes when your time is worth $100 an hour costs $1,000
• Error risk: Making costly mistakes becomes more likely when you're multitasking, contributing to what the ATO identifies as a tax gap of more than $5 billion from honest errors and poor record keeping
• Opportunity cost: Using those hours to generate revenue instead

An accountant often costs less per hour than your own time is worth. You'll gain peace of mind knowing an expert handles the details.

You'll need advice about your company's legal structure

Your business structure affects your taxes, personal liability, and growth options. Data shows the largest type of small businesses are sole traders (46%), followed by companies (26%). An accountant can explain which structure suits your situation and help you set it up correctly.

Common business structures in Australia include several options, each with different implications for tax and liability:

• Sole trader: Simple to set up, and you can offset some living expenses against tax. However, you're personally liable for all business debts.
• Company: Limits your personal liability to the assets owned by the business. More complex to manage but offers greater protection.
• Partnership: Shares responsibilities and profits between partners, with each partner liable for business debts

The right structure depends on your risk tolerance, growth plans, and tax situation. An accountant can walk you through the implications of each option before you commit.

You'll need advice when you write a business plan

An accountant adds credibility to your business plan by creating realistic financial projections, cash flow forecasts, and professional reports. These elements help convince investors and lenders that your business is viable.

Hiring a professional at this early stage means you benefit from their financial expertise from day one. This can save you time and money compared with bringing one in later. Our business plan template can help you get started.

What to look for when hiring an accountant

Not all accountants offer the same services or expertise. Before you hire, understand what qualifications, experience, and support you should expect.

Qualifications and credentials to verify

Look for accountants with recognised professional qualifications. In Australia, this typically means holding one of these qualifications:

• CPA (Certified Practising Accountant): Members of CPA Australia with ongoing professional development requirements
• CA (Chartered Accountant): Members of Chartered Accountants Australia and New Zealand who have completed three years of mentored experience to apply their skills
• Registered tax agent: Licensed by the Tax Practitioners Board to provide tax advice and lodge returns; according to the ATO, they are the only people that can charge a fee for this service

Ask about their qualifications upfront. A qualified accountant has met education, experience, and ethical standards that protect you.

Experience with your industry and business size

An accountant who understands your industry can offer more relevant advice. Ask whether they work with businesses similar to yours. Consider their experience in these areas:

• Industry: Retail, construction, professional services, and hospitality each have unique accounting needs
• Size: An accountant used to large corporations may not suit a sole trader's needs
• Stage: Startups, growing businesses, and established companies face different challenges

Services and support they provide

Accountants offer different levels of service. Clarify what's included before you commit. Common service levels include:

• Tax returns only: Basic compliance work at tax time
• Ongoing bookkeeping: Regularly recording transactions and reconciling accounts
• Advisory services: Providing strategic advice on growth, cash flow, and business decisions
• Payroll and BAS (Business Activity Statement): Managing employee payments and GST (Goods and Services Tax) obligations

Make sure their services match what you actually need.

Technology and software compatibility

Ask which accounting software they use and recommend. Working with an accountant who uses the same platform as you makes collaboration easier.

Cloud-based software lets you and your accountant access the same data in real time. This means faster answers, fewer errors, and better visibility into your finances.

You'll need an accountant to help with the finances

Hire an accountant when your finances feel out of control. If you're losing track of who owes you money or struggling to understand your cash position, professional help can get you back on track.

An accountant can help you regain control of your finances in several ways:

• Track receivables: Know exactly who owes you money and when it's due
• Monitor key metrics: See how payroll costs compare to revenue over time
• Understand your position: Get clear charts and reports showing your financial health at a glance
• Manage cash flow: Spot potential shortfalls before they become problems

When your accountant uses cloud-based accounting software, they can share real-time reports with you. You'll always know where your business stands financially.

Hire an accountant when you have to deal with the government

Government compliance is one of the most time-consuming parts of running a business. ATO data shows that on-time payment for small businesses is closer to 70%, compared to nearly 90% for all taxpayers. Many small business owners hire an accountant when their first tax filing is due, but accountants help with far more than tax returns.

A good accountant handles many compliance tasks on your behalf. They will:

• File compliance documents: Complete and lodge required legal paperwork for your business
• Stay current on tax laws: Keep you informed about changes that affect your obligations
• Prepare financial statements: Create annual accounts that meet regulatory requirements
• Manage company records: Update registers for directors, shareholders, and business changes
• Handle payroll: Ensure employee tax codes and superannuation payments are correct

Preparing your tax documents correctly could save you more money than your accountant charges. A good accountant will also identify ways to improve your cash flow and reduce your tax burden legally.

Hire an accountant in case you're audited

Audits are rare but stressful when they happen. While most small businesses won't be audited, the process is expensive and time-consuming if you're selected.

If you don't have an accountant when an audit notice arrives, hire one immediately. They'll guide you through the process and help you avoid future compliance issues.

Better yet, hire an accountant before an audit happens. Look for one who offers audit insurance. This coverage pays for the professional fees involved in responding to tax office enquiries, reviews, or investigations. Without it, you'll pay extra for the considerable work an audit requires.

Good accounting software maintains an audit trail automatically. This makes it easier for both you and the tax office to see exactly what transactions occurred and who authorised them.

You'll need an accountant when you apply for a business loan or overdraft

An accountant improves your chances of loan approval. Banks want confidence they'll get their money back. Professional financial documentation demonstrates you're serious about your business. This is critical when many small businesses have historically worried about their ability to meet the next three months of financial commitments.

An accountant provides essential support when you apply for loans. They help by:

• Preparing financial statements: Creating professional reports that back up your funding request
• Answering lender questions: Explaining revenue projections and expense forecasts credibly
• Comparing loan options: Advising whether terms, conditions, and interest rates are favourable
• Building credibility: Simply having an accountant signals to banks that you manage finances professionally

With good accounting software, your accountant can quickly produce the facts and figures lenders need to make a decision.

When your company is growing, hire an accountant

Rapid growth creates financial complexity. A new client or big project can mean scaling faster than expected. That's when an accountant becomes essential.

An accountant helps you manage growth in several important ways:

• Handling the details: Managing payroll, employee taxes, and new overhead costs so you can focus on the bigger picture
• Analysing cash flow: Ensuring you have enough working capital to support expansion
• Reviewing pricing: Checking your margins can sustain increased volume
• Timing new offerings: Advising when to introduce new products or services based on financial readiness

Growth is exciting, but it can strain your finances if not managed carefully. An accountant helps you expand without losing control.

Get an accountant's advice before you take on a franchise

Franchise agreements contain complex financial obligations that are hard to evaluate alone. An accountant can analyse the contract and help you understand what you'll actually earn after fees.

Franchises offer trade-offs that you should carefully consider:

• Benefits: Brand recognition, marketing support, proven systems, and product supply
• Costs: Ongoing royalties, marketing levies, and reduced commercial freedom

Franchise contracts vary significantly. Some charge flat fees while others take a percentage of revenue. An accountant can review the specific terms, calculate your likely income after all deductions, and help you decide if the opportunity is worthwhile.

Only you can make the final decision, but detailed financial analysis gives you the confidence to choose wisely.

Get an accountant's advice before you buy a business

Buying an existing business carries hidden risks that only show up in the accounts. Always consult an accountant before signing anything. They'll examine the financials in detail and flag potential problems.

An accountant will thoroughly review the business's financial records. They'll check:

• Asset ownership: Whether equipment is fully owned, leased, or still being paid off
• Outstanding debts: Any liabilities you'd inherit with the purchase
• Revenue accuracy: Whether reported income matches actual bank deposits
• Hidden obligations: Contracts, warranties, or commitments that transfer with the business

Work with a lawyer alongside your accountant. Together, they'll uncover everything you need to know before committing. Doing this thorough review gives you confidence that you're getting what you're paying for.

Get advice from an accountant before you sell your business

How you structure a business sale significantly affects how much you keep after tax. An accountant helps you maximise your return and present your business professionally to buyers.

An accountant provides essential support throughout the sale process. They help by:

• Preparing financial records: Creating clean statements of accounts that buyers and their advisors expect
• Presenting your business: Producing charts and reports that show your company in the best light
• Managing due diligence: Speaking directly with buyers' accountants during the review process
• Structuring the deal: Advising whether a lump sum, instalments, or earn-out arrangement is most tax-efficient

How you structure the sale can substantially affect your outcome. A good accountant ensures you get the best possible outcome when you sell up.

Hire an accountant when you're ready to delegate

Successful business owners know when to delegate. If you're feeling overworked and stressed, it might be time to hand over your financial management to a professional.

Many business owners struggle to let go. You might feel no one knows your business as well as you do. But trying to do everything yourself leads to burnout and mistakes.

Start by delegating your finances. An accountant brings expertise you don't have, freeing you to focus on what you do best. Once you trust someone experienced with your financial information, you'll have more time and energy for growing your business.

The most successful business owners are experts at finding the right people for each task. Managing your finances is one of the first things worth handing over.

Questions to ask before you hire an accountant

Asking the right questions helps you find the best fit for your business. Before your first meeting, prepare to discuss these key topics.

• What are your qualifications and how long have you been practising?
• Do you have experience with businesses like mine?
• What services do you provide, and what's not included?
• How do you charge for your services?
• Which accounting software do you use and recommend?
• How often will we communicate, and how quickly do you respond?
• Who will actually be handling my account?
• Can you provide references from current clients?

Pay attention to how they answer. A good accountant explains things clearly without jargon. They should ask questions about your business too, showing genuine interest in understanding your needs.

Your instincts matter when choosing someone to handle sensitive financial information.

Accountants can help you every step of the way

From startup to sale, accountants provide valuable support at every stage of your business journey. The right accountant makes life easier, giving you more time to focus on what you love doing.

Your specialty is running your business. Leave the financial details to an accountant. When you both use cloud-based accounting software, you can collaborate seamlessly while maintaining visibility over your finances.

Ready to find the right accountant for your business? Get connected with an experienced accountant in the Xero advisor directory. When you work with a Xero-connected accountant, you can share your financial data seamlessly. Get one month free when you start with Xero.

FAQs on hiring an accountant

Here are answers to common questions small business owners have when deciding whether to hire an accountant.

How much does an accountant cost for a small business in Australia?

Accountant fees vary based on services and complexity. Expect to pay $150 to $400 per hour for qualified accountants. Basic tax returns for sole traders might cost $200 to $500. Ongoing monthly bookkeeping and advisory services typically range from $200 to $2,000 per month, depending on your business size.

Is hiring an accountant worth the cost?

For most small businesses, yes. A good accountant saves you time and reduces errors, with compliance rates being higher than self-preparers, and often identifies tax savings that exceed their fees. They also provide peace of mind that your compliance obligations are met correctly.

Can I get free accounting help if I'm just starting out?

Some options exist for early-stage businesses. The Australian Tax Office offers free resources and webinars. Some accounting firms provide free initial consultations. University accounting students sometimes offer supervised services at reduced rates. However, for complex matters, professional paid advice is usually worthwhile.

What's the difference between an accountant and a bookkeeper?

Bookkeepers handle day-to-day transaction recording, reconcile bank statements, and create basic reports. Accountants provide higher-level services: they plan taxes, analyse finances, advise on business matters, and prepare statutory accounts. Many small businesses use both, or start with a bookkeeper and add an accountant as they grow.

How do I know if an accountant is qualified in Australia?

Check for membership in CPA (Certified Practising Accountant) Australia or Chartered Accountants Australia and New Zealand. For tax services, verify they're registered with the Tax Practitioners Board at tpb.gov.au. You can also ask for their registration number and look them up directly.