What does an accountant do? How they help your business

Published Thursday 2 April 2026

Table of contents

• What is an accountant?
• Core responsibilities of accountants
• Types of accountants
• How accountants help small businesses
• Tax and compliance
• Accountant qualifications and career path
• How to find the right accountant
• Work easily with your accountant
• FAQs on accountants

Key takeaways

• Recognise that modern accountants provide strategic business value beyond tax returns, including cash flow management, loan applications, technology setup, and growth planning that can transform how you operate.
• Choose an accountant based on both technical qualifications and personal connection, as you need someone who understands your goals and can have frank conversations about your business challenges.
• Leverage cloud accounting software setup by your accountant to automate manual tasks like invoicing, bank feeds, and payroll, giving you real-time visibility into your finances and freeing up time for core business activities.
• Understand the different types of accountants available so you can match your specific needs with the right expertise, whether that's a tax specialist, management accountant, or public accountant who works with multiple clients.

Key takeaways

• Accountants do more than tax returns. They provide strategic advice on cash flow, budgeting, debt management, and business growth.
• The right accountant helps you launch startups, secure loans, hire staff, and set up technology that automates manual tasks.
• Different types of accountants specialise in different areas. Tax accountants, management accountants, and bookkeepers each serve distinct needs.
• Finding an accountant you connect with personally and professionally makes a real difference to your business outcomes.
• Modern accountants understand cloud software and can set up systems that give you real-time visibility into your finances.

What is an accountant?

An accountant is a financial professional who manages, analyses, and reports on your business finances. They belong to a global profession with more than 3 million accountants in public practice, education, government service, and commerce. They handle everything from tax compliance and bookkeeping to strategic advice that helps you grow.

But the best accountants do more than crunch numbers. They find ways to save money, boost revenue, and automate tasks that distract you from running your business. With the right accountant, you'll operate with more clarity and confidence.

Core responsibilities of accountants

While their roles can vary, most accountants handle a core set of financial tasks. These responsibilities are key to keeping your business running smoothly.

• Preparing financial statements like profit and loss reports and balance sheets
• Ensuring your business complies with tax laws and government regulations
• Analysing financial data to provide insights for business decisions
• Managing payroll and bookkeeping records
• Advising on budgets, cash flow, and financial strategy

Types of accountants

Not all accountants are the same. Different types specialise in different areas, so it's helpful to know which one fits your needs.

Public accountants

Public accountants work with a wide range of clients, from individuals to large corporations. They often handle tasks like auditing, tax preparation, and general financial consulting.

Management accountants

Also known as corporate accountants, they work inside a single company. Their focus is on internal reporting, budgeting, and strategic planning to help management make informed decisions.

Tax accountants

These accountants specialise in all things tax. They help businesses and individuals prepare tax returns, find tax savings, and navigate complex tax regulations to comply with the law.

Bookkeepers vs accountants

A bookkeeper records daily financial transactions, keeping your books organised. An accountant takes that data, analyses it, and provides strategic advice. While a bookkeeper manages the day-to-day, an accountant helps you see the bigger picture.

Certified accountants (CPA, CA, CMA)

Certified accountants have passed rigorous exams and met specific education and experience requirements. For example, in the US, CPA candidates must complete 150 semester hours of coursework to be licensed, 30 more than a typical bachelor's degree. These credentials, like Certified Public Accountant (CPA), Chartered Accountant (CA), or Certified Management Accountant (CMA), show they're highly skilled and professional.

How accountants help small businesses

Beyond tax and bookkeeping, accountants provide strategic value that can change how you run your business. Here are specific ways the right accountant can help your small business thrive.

Launch a startup

Accountants help startups launch successfully by validating your business idea and securing funding. They turn your concept into credible financials that investors and lenders trust.

Here's how they help:

• Test your idea: Identify startup and operating costs to confirm profitability
• Create revenue forecasts: Build credible projections that attract funding
• Connect you with lenders: Know which financial institutions are actively lending
• Refine your pitch: Prepare you to impress investors and secure capital

Help with business strategy

Accountants provide strategic guidance to help you focus on what matters most. They work with you to set goals and measure progress through key performance indicators (KPIs), a priority for many businesses, as research shows 65% of small businesses are more likely to invest in software with performance tracking features.

With the right accountant, you get:

• Set goals: Define personal, professional, and financial targets
• Track KPIs: Monitor business performance with clear metrics
• Real-time dashboards: Check progress anytime through your accounting software
• Troubleshoot problems: Identify issues, test solutions, and adjust your strategy

Fix your cash flow

Accountants fix cash flow problems by predicting revenue patterns and creating spending plans that keep money in the bank. Cash flow problems are one of the most common reasons businesses struggle, even when they're profitable.

Here's how accountants help manage cash flow:

• Predict cash patterns: Forecast when revenue and costs will rise or fall
• Build cash reserves: Set aside funds for slow periods
• Create spending plans: Help ensure you can cover payroll and suppliers
• Reduce financial stress: Make payday more predictable and supplier relationships easier

Listen and support you

Accountants provide moral support when running a business feels overwhelming. They understand what your business means to you and help keep you focused on your goals.

A good accountant will:

• Reassure you: Remind you why you started and where you're headed
• Break down problems: Turn big challenges into manageable steps
• Help manage stress: Provide perspective when things feel too hard
• Keep you in the game: Support you through difficult periods so you don't give up

Manage your debt

Accountants help you manage debt strategically by finding the right borrowing options and advising when to pay down loans versus reinvest in growth.

They'll help you:

• Distinguish good debt from bad: Understand which borrowing supports growth
• Find affordable financing: Secure loans with the right mix of flexibility and low interest
• Refinance debt: Restructure existing debt when better options emerge
• Decide when to repay: Know whether spare cash should reduce debt or fund growth
• Create a custom strategy: Get advice tailored to your specific financial situation

Deal with unpaid invoices

Accountants handle unpaid invoices so you can focus on running your business instead of chasing payments. They set up systems and processes that get you paid faster.

Here's how they help:

• Automate reminders: Set up invoice systems that notify customers when bills are due or overdue
• Follow up directly: Some accountants will call businesses that don't respond to emails
• Arrange invoice financing: If payments remain outstanding, sell unpaid invoices to a third party who handles collection

Write and pitch loan applications

Accountants write and pitch loan applications that give you the best chance of approval. They can advise on key lending criteria, such as ensuring credit scores are at least 650 to improve your credit risk assessment. They combine solid financials with a compelling story that sells your business vision to lenders.

Here's what they provide:

• Credible financials: Prepare accurate numbers that lenders trust
• Visual presentations: Use graphs and charts to show the opportunity clearly
• Professional forecasts: Use tools loan officers recognise and rely on
• Compelling narrative: Tie your numbers to a bigger vision that resonates with decision-makers

Budget smartly

Accountants create accurate budgets that replace vague estimates with numbers you can trust. Detailed budgeting takes time most business owners don't have, which is why many work off assumptions.

With a professional budget, you'll know:

• Your true operating costs: The real expense of running your business
• How much to reinvest: What you can put back into growth
• What you can pay yourself: A realistic owner's draw or salary

Get you staffed up

Accountants help you hire strategically by analysing which roles will boost your bottom line and ensuring you can afford the full cost of employment.

They'll help you:

• Identify the right hire: Determine whether a salesperson, technician, or other role delivers the best value for your money
• Calculate total costs: Factor in hiring, training, salary, and benefits before you commit
• Set up compliant payroll: Handle government paperwork, tax withholding, and insurance requirements

Set up your cloud accounting software

Accountants set up cloud accounting software that automates your financial tasks and lets you see your business finances in real time. With nearly 60% of small businesses having adopted cloud-based accounting solutions, cloud software has become standard for modern operations. Sales and expense data flows directly into your accounts, and invoicing systems track what's been paid.

Key automations they can implement include:

• Bank feeds: Connect accounts so transactions import automatically
• Invoice reminders: Send automatic follow-ups to clients who haven't paid
• Cash flow dashboards: See your financial position at any time
• KPI tracking: Monitor business performance around the clock
• Accounts payable automation: Stay on top of bills and expenses
• Mobile access: Manage finances from anywhere

Help you manage inventory

Accountants help you manage inventory by reducing holding costs and predicting stock needs based on your sales data. Poor inventory management leads to wasted storage costs, obsolete goods, and lost sales from stockouts.

Here's how they help:

• Analyse holding costs: Identify how much inventory is costing you
• Predict demand: Review sales data to forecast what you'll need
• Optimise ordering: Help you place accurate orders at the right time
• Set up tracking software: Automate inventory monitoring and reordering

Make your business run more efficiently

Accountants help your business run more efficiently by identifying unnecessary costs and developing smarter ways of working. Operating expenses like storage, energy, and staffing can climb quickly without someone to oversee your strategy.

They'll help you reduce costs in areas like:

• Reduce storage costs: Optimise physical space and IT infrastructure
• Cut energy costs: Lower electricity, gas, and utility expenses
• Optimise staffing: Minimise downtime and improve productivity
• Streamline operations: Find inefficiencies and improve processes

Unlock the power of technology

Accountants unlock the power of technology by setting up software that automates manual tasks and streamlines your operations. The right tools save time, reduce errors, and lower costs.

They can help you implement:

• Schedule staff: Automate rosters and time recording
• Set up point of sale: Streamline in-store transactions
• Process payments: Accept payments faster and more securely
• Customer relationship management (CRM) systems: Manage customer relationships and communications
• Invoice clients: Send bills and track payments automatically
• Run payroll: Calculate wages, taxes, and deductions accurately

Look for a tech-savvy accountant who understands business apps and how to integrate them.

Bring some fun into your business – honestly

Modern accountants bring diverse backgrounds and hands-on approaches to their work. Some will visit your workplace to understand how your business actually operates.

Today's accountants come from all walks of life. Check out accountant and bookkeeper stories to learn about advisors who started in rock bands, orchestras, and cheerleading troupes.

Finding an accountant you connect with personally and professionally makes a real difference to how you run your business.

Tax and compliance

Tax and compliance remain core accountant services, but the best ones go beyond just filing returns. They help you pay less tax legally and stay audit-ready year-round.

A great accountant will:

• Lower your tax exposure: Find deductions and strategies to reduce what you owe
• Manage tax debts: Negotiate payment plans for outstanding obligations
• Fix record-keeping: Organise messy books before they cause problems
• Reduce audit risk: Keep your returns accurate and compliant
• Prepare for audits: Ensure your books are watertight if you're ever reviewed

Accountant qualifications and career path

Understanding what makes a qualified accountant can help you choose the right one. Most accountants have a degree in accounting or a related field. Many also pursue certifications to advance their careers and demonstrate their expertise.

A common career path starts with an entry-level role, moves into a senior accountant or analyst position, and can lead to management roles like controller or Chief Financial Officer (CFO). The profession is stable, with employment of accountants projected to grow steadily over the coming decade. The skills they develop along the way make them valuable advisors for your business at any stage.

How to find the right accountant

To find the right accountant, start by asking people you trust. Here's how to begin your search:

• Ask for recommendations: Talk to friends, family, and business partners about their accountants
• Check qualifications: Look for relevant certifications like CPA or CA
• Assess technology skills: Find someone who understands cloud accounting software
• Search advisor directories: Browse curated lists of vetted professionals

Ready to find an accountant who understands modern small business? Check out the Xero advisor directory to connect with professionals who know the power of business software.

Work easily with your accountant

The right accountant transforms how you run your business. They bring capability and insight that goes far beyond tax returns. If they can't solve a problem themselves, they'll connect you with someone who can.

When choosing an accountant, look beyond technical skills. You need someone you can have frank conversations with, someone who understands your goals and challenges.

The accountant who can do all of this for you is out there. A great accountant paired with the right software makes everything easier. Get a real-time view of your finances, making collaboration with your accountant simple and effective. Ready to see how easy it can be? Get one month free.

FAQs on accountants

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

What is the main job of an accountant?

The main job of an accountant is to manage, analyse, and report financial information for businesses or individuals. They maintain accurate records, prepare financial statements, ensure tax compliance, and provide strategic advice to support better business decisions.

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

Bookkeepers handle day-to-day financial transactions like recording sales, expenses, and payments. Accountants work at a higher level, analysing financial data, preparing reports, handling tax planning, and providing strategic business advice. Many small businesses benefit from having both.

How much does it cost to hire an accountant?

Accountant fees vary based on location, expertise, and services. Some charge hourly rates, while others offer monthly retainer packages. It's best to discuss fees upfront to find an arrangement that fits your budget.

Do I need an accountant or can I do it myself?

You can handle basic bookkeeping yourself using Xero accounting software, especially when starting out. Consider hiring an accountant when you need help with tax strategy, financial planning, loan applications, or scaling your business. Even DIY bookkeepers benefit from quarterly or annual accountant reviews.

Are accountants well paid?

Yes, accounting is generally a well-compensated profession, with salaries depending on factors like qualifications, specialisation, and experience. It offers strong earning potential and career stability.

Do accountants do a lot of maths?

Not really. Most accounting involves basic arithmetic and percentages. Modern accounting software handles calculations automatically, so accountants focus more on analysing data, interpreting trends, and providing strategic advice. Critical thinking matters more than advanced mathematics.