How much does a small business accountant cost?

Small business accountants are not all created equal, and your business’ profitably and safety relies on their professionalism. When choosing the right accounting professional within your budget, you’ll need to consider a number of factors.

Firstly, what do good small business accountants offer?

Standard business accountants will simply offer tax advice and tax filing, but great accountants can offer so much more, such as:

• Advice about your business’ structure to optimise its safety and profitability.
• Help to grow your personal wealth, while keeping it separate from your business accounts.
• Minimisation of tax payments while ensuring every tax obligation is met accurately.
• Collaboration with you to create and achieve your business goals.

Small business accountants can optimise your business’ profits

Your small business accountant is responsible for your accounts, of course, but a great accountant will also advise you on how to structure your business to maximise profits.

For example: If your business is growing but you’re still registered as a sole trader, your business will likely be paying higher tax than required, inhibiting growth. A great small business accountant can advise you to restructure your business for profit to help you achieve your business goals.

Great business accountants protect you from ATO audits

Undergoing an audit is stressful, and often stems from a lodged tax return with errors or loose ends. A great business accountant is fastidious in ensuring your tax obligations are met, saving you from excessive tax bills and from the auditor knocking on your door.

If you do get audited though, exceptional small business accounting firms will even offer an audit guarantee. This ensures you’re not charged for any of their time spent working on the audit.

Not all small business accountants offer the same fee structure

Understanding what you’re paying for when enlisting the services of a small business accountant is imperative so you don’t end up with a huge bill at the end of the quarter. When you’re shopping around for your new accountant, ensure you ask them what they charge for.

• Will you be paying per hour, or on an agreed all-inclusive price?
• Will they charge you per minute for phone calls? Or are a number of calls included?
• Will you be able to pay monthly or quarterly? Or is an upfront payment required?
• Will you be charged for their work during an audit if your business gets audited by the ATO?

Once you understand the fees involved, you can ask them more detailed questions about what they will offer you. Bear in mind, your business needs will differ depending on:

• Where you are in your business journey; Are you planning on leaving or selling anytime soon?
• How complex your business needs are.
• Whether you need financial planning and structuring advice.

How to choose the right small business accountant within your budget

When it comes to your small business accounts, things can go awry quickly for both your business and your own personal finances if your accounts are sloppy. These implications can be anything from paying more tax than required, to running the risk of personal liability if an incident occurs and your business structure is incorrect.

With this in mind, consider the value a small business accountant can offer. Look for a professional with sound knowledge of the most recent legislation and tax laws, as this can help you optimise your profits and minimise tax obligations.

Great small business accountants will be transparent with their fees, and what they can offer you. With fantastic accounting professionals available, it’s important to consider your business goals, not just your purse strings. Invest in the services of a valuable professional to help optimise your business and personal financial outcomes, and your business will thank you for it.