What Does an Accountant Do? Key Roles for Your Business

Published Thursday 8 January 2026

Table of contents

• What does an accountant do? Core responsibilities
• Types of accountants
• What an accountant can do for your business
• And let's not forget tax
• Get the right accountant for your business
• FAQs on what accountants do

Key takeaways

• Recognize that modern accountants serve as strategic business partners who go far beyond basic bookkeeping to provide comprehensive support including cash flow management, business planning, technology implementation, and growth strategies.
• Utilize your accountant's expertise to automate routine financial tasks through cloud-based software systems, which can handle everything from invoicing and payroll to stock management and payment processing, freeing up your time for core business activities.
• Leverage your accountant's strategic capabilities during critical business phases such as startup launches, loan applications, and expansion planning, as they can create compelling financial projections and presentations that secure funding and guide decision-making.
• Choose an accountant who combines technical expertise with strong communication skills and industry knowledge specific to your business, ensuring they can explain complex financial concepts clearly and provide relevant, actionable advice for your situation.

What does an accountant do? Core responsibilities

At their core, accountants prepare and examine financial records. They make sure your records are accurate, you pay the right tax, and you meet financial regulations. But their role goes far beyond just numbers.

A great accountant provides solutions for your business, helping you identify opportunities and manage risks. Key duties often include:

• preparing financial statements so you can see how your business is performing
• ensuring you comply with tax laws and other financial regulations
• offering strategic advice to improve profitability and growth
• helping you manage cash flow so you can pay bills and staff on time
• evaluating financial risks to protect your business

Types of accountants

Not all accountants are the same. Many specialise in different areas to support specific business needs, and some undertake an accredited postgraduate qualification to become Chartered Accountants, which involves demanding assessments based on real-world scenarios.

As a small business owner, you might work with:

• Public accountants: These are the all-rounders who can help with a wide range of tasks, including tax preparation, bookkeeping, and general business advice.
• Management accountants: Working inside a business, they focus on internal financial reporting and strategy. They help you make informed decisions by analysing performance and budgets.
• Financial advisors: While not always accountants, they often have an accounting background. They help with broader financial planning, including investments, insurance, and retirement planning.

What an accountant can do for your business

Modern accountants provide strategic business support that goes far beyond traditional bookkeeping. They help you:

• Save money: Identify cost-cutting opportunities and tax efficiencies
• Boost revenue: Analyse performance data to find growth opportunities
• Automate admin: Set up systems that handle routine tasks automatically
• Make decisions: Provide clear financial insights for confident planning

The question isn't what does an accountant do; it's what can't they help you with.

1. Launch a startup

Startup support from an accountant turns your business idea into a fundable opportunity. They provide the financial foundation investors and lenders demand.

Key startup services include:

• Business validation: Test your idea's profitability before you invest
• Cost planning: Identify all startup and operating expenses upfront
• Revenue forecasting: Create credible financial projections that convince lenders
• Funding strategy: Connect you with the right lenders and investors
• Pitch preparation: Develop compelling presentations that secure financing

2. Help with business strategy

Business strategy support helps you focus on what matters most for growth. Accountants cut through complexity to identify your priorities and measure progress.

Strategic planning includes:

• Goal setting: Define clear personal, professional and financial targets
• KPI development: Create measurable indicators that track business health
• Dashboard setup: Get real-time access to your key performance metrics
• Performance monitoring: Regular reviews to spot issues before they become problems
• Strategy adjustment: Modify plans based on actual results and market changes

3. Fix your cash flow

Cash flow management prevents profitable businesses from failing due to timing mismatches. Many otherwise successful companies run into serious trouble simply because they cannot pay bills when they fall due.

Cash flow solutions include:

• Forecasting: Predict when money comes in and goes out
• Reserve planning: Build cash buffers for unexpected expenses
• Payment timing: Schedule expenses to match your revenue cycles
• Collection strategies: Speed up customer payments to improve cash position
• Spending controls: Prioritise expenses to maintain healthy bank balances

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 9-to-5 you left behind, a good accountant can help you stay focused and keep going.

They know how much your business means to you. They can reassure and reset you on your journey. And they'll help you cope with stress by breaking down big business 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 spare cash should be used to pay back loans, and when it should be reinvested in the business. They'll do that by considering the numbers behind your business and looking at how your debt's structured to develop a specific strategy for you. It's not just blanket advice.

6. Deal with unpaid invoices

Unpaid invoices are a fact of business. Chasing those debtors is a distraction you don't need, especially when the median hourly value of a business owner's time is estimated at nearly $89. You can't afford to ignore the problem, but an accountant can take the headache away.

7. Write and pitch loan applications

Applying for a loan can be complex. 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 they also want to understand your wider business vision. An accountant will tie it all together in a presentation that sells the wider vision for your business.

Instead of spreadsheets, your accountant can prepare clear graphs and charts that show the numbers, so your lender can see the opportunity. And they'll use powerful 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 that are 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. You'll know how much money you can reinvest. And you'll know what you can pay yourself.

9. Get you staffed up

Need hired help, but not sure where to start? Your financial advisor can step in here too.

• They'll figure out what sort of hire will boost business the most. Will your bottom line benefit more from a sales person or a technician?
• They'll work out the cost of hiring, training and paying an employee to make sure you can afford it.
• They'll also help you get payroll right, including complying with government paperwork, tax and insurance requirements.

10. Set up your cloud accounting software

Your accountant can automate much of your business's accounting so that sales and expense data flows directly into your accounts, reflecting a broader industry trend where the uptake of online systems continues to grow and replace paper-based methods.

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.

11. Help you manage stock

Do you spend a lot on storage, write off obsolete or damaged goods, or lose revenue because you run out of stock? Smart stock management is critical to doing good business.

Your accountant will identify the cost of holding stock and come up with strategies to save some of that money. Plus they'll review your sales data to help predict stock needs, so you can place accurate orders. They can even set up software that tracks stock levels and auto-orders items as they run low.

12. Make your business more efficient

The cost of doing business can climb quickly with things like:

• Storage: Physical or IT
• Energy: Electricity, gas, utilities
• Employees (and downtime)

Do you think about these costs strategically? If you don't have the time or expertise, that's something an accountant can do for you. They'll identify unnecessary costs in your business and help you develop more efficient ways of working.

13. Use technology to simplify your work

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 payroll (a task where 41% of businesses already use online systems) as well as:

• Staff scheduling and time recording
• Point of sale
• Taking payments
• Customer relationship management
• Invoicing
• Payroll

This can save you time, reduce errors and lower your costs. Automating business processes takes away pain, lowers costs and ensures everything runs smoothly. Make sure you choose an accountant who is comfortable with technology and understands business apps.

14. Work with an accountant you enjoy dealing with

Accountants used to be seen as formal and distant. Today, many are more hands-on and keen to understand how your business really works. Many modern accountants have interesting backgrounds and will come into your workplace to see how your business actually works.

Check out accountant and bookkeeper stories to learn about financial advisers who come from rock bands, orchestras and cheerleading troupes, to name a few.

It is easier than ever to find an accountant you relate to on a personal and professional level. The right fit can change how you run your business.

And let's not forget tax

There's more to tax than completing and submitting your returns, which is why 91% of businesses pay for external professional services, with accountants and bookkeepers being the most common choice. A great accountant will:

• lower your tax exposure
• help you deal with old tax debts
• fix poor record-keeping
• help you avoid audits
• make sure your books are watertight if you're audited

Get the right accountant for your business

The right accountant transforms your business from a collection of tasks into a strategic operation. They bring expertise, systems, and insights that free you to focus on growth instead of administration.

Beyond technical skills, look for an accountant who:

• Communicates clearly: Explains complex concepts in plain language
• Understands your industry: Knows the specific challenges you face
• Uses modern technology: Leverages cloud software and automation
• Thinks strategically: Sees the bigger picture beyond compliance
• Fits your style: Makes financial discussions comfortable and productive

Finding the right accountant requires more than checking qualifications. The best matches combine technical expertise with industry knowledge and communication style that works for you.

Steps to find your ideal accountant:

• Get referrals: Ask trusted business contacts about their accountant experiences
• Check specialisations: Look for expertise in your industry and business size
• Evaluate technology: Ensure they use modern cloud-based accounting software
• Assess communication: Schedule initial consultations to test their explanation style
• Compare services: Review their full range of offerings beyond basic compliance

Check out our advisor directory to find progressive accountants who understand modern business software and offer comprehensive services.

Ready to transform how you manage your business finances? Try Xero for free and see how the right accounting platform can support both you and your accountant in building a more successful business.

FAQs on what accountants do

Here are answers to a few common questions about what accountants do.

What are the main duties of an accountant?

The main duties include preparing and examining financial records, ensuring tax compliance, and offering strategic advice. They help businesses manage risk, identify opportunities for growth, and maintain accurate financial reporting.

Is an accountant a stressful job?

It can be, especially during busy periods like tax season. The role comes with tight deadlines and a high level of responsibility. However, many accountants find it incredibly rewarding to help business owners achieve their financial goals.

How much do accountants get paid in New Zealand (NZ)?

In New Zealand, the average salary for an accountant typically ranges from $80,000–$90,000 per year. This can vary based on experience, the type of accounting they specialise in, and their location.