Signs That Your Small Business Needs An Accountant To Level Up Your Financial Management

Financial Management

If you own a small-sized business in Australia, you will have to look after various matters in the beginning stages. Managing your business finances may work in the initial phases, but as the company grows, you have to encounter different issues. Developing financial strategies and managing taxation duties can be rigorous and time-consuming, specifically if your business operates within an industry that involves strict compliance and regulatory standards. This blog will provide you with guidance on when you should need the help of accountant services.


Five signs that your business needs a professional accountant

Here we discuss five crucial signs that indicate the need for a professional accountant.

Bookkeeping consumes a significant amount of your valuable time

As the owner of a business, you will have many duties to fulfill. But it doesn’t mean that you can afford to be involved in numerous different directions.


If you utilize your energy on tasks where you do not have many skills, it will waste time and money. And as your company grows, you will have to face more complicated transactions. Usually, there is a huge number of accounting tasks, which include:

  • Responsibility for daily transactions,
  • Chart of account maintenance/general ledger,
  • Preparation and analysis of the financial statement,
  • Cost accounting and variance analysis,
  • Cash and treasury management, including bank reconciliations,
  • Fixed asset and payroll accounting, etc.


These tasks may consume a significant portion of your valuable time. But a professional accountant can do them effectively and quickly. Thus, when you have an accountant to manage all the finances and accounting, you can feel more relaxed and focus on other matters related to your business growth.

You plan to expand your business beyond your state

Whenever you plan to grow your business beyond your state border, you have to keep in mind that there will be a new company and taxation rules that you have to be compliant with. During the expansion, you may do the following.

  • You may recruit new employees.
  • You are likely to open a new branch.
  • You will want to do business across state lines.


Now, if you have a qualified accountant, they can ensure that you obey the state rules regarding sales, income, and payroll tax reporting. In addition, they can also review all the documents and identify incentives you could have overlooked.

You are finding taxation highly complicated

If you owe a considerable back tax amount or have previously received a significant amount of refund, these signals indicate that your tax handling is not accurate.

If it happens, you will find taxation season the most stressful time of the year. Professionals having detailed knowledge about the nuances of tax requirements, regulations, and laws can also find it highly complicated.


The Australian taxation authority is strict about it, and a single mistake can lead to serious consequences like heavy penalties. If you do not know the exact rules, you may miss opportunities to minimize your tax liabilities via business credits and deductions.


In this situation, having a certified small business tax accountant can be of great help. Make sure your tax accountant can:

  • Assist in personal tax planning,
  • Help in business tax planning,
  • File financial reports and paperwork to the ATO,
  • Compile and submit taxes, and
  • Help in increasing your business credits and deductions.


The tax accountant’s salary can also be claimed as a deduction. So, it is always recommended to hire a professional for tax-related matters, no matter what they charge.

In case of unique situations

As your business grows, you may come across situations when you need an accountant’s expertise. Usually, there are three particular instances where the advice of an account becomes highly essential. These three situations are as follows.

During an audit

If there is a chance of an audit, you must hire an accountant. Even if the Australian Tax Office (ATO) sends a simple request for more details about your tax returns, an accountant will be the best person you should hire.


An experienced professional knows how to interact with the ATO and can make sure that you correctly respond to their queries. But if you choose to deal with it on your own and make an error, your business may face huge fines.

Unexpected circumstances

Sometimes, personal affairs can heavily affect the business’s future. For example, if the company is a marital asset and the two spouses divorce or a business partner leaves the business, the business course can change. At this point, if you have an accountant by your side, they can give you advice on how to take actions about business structures and taxes, estimate the value of the business, or generate financial statements.

Taking out a business loan

If you consider taking out a business loan, you must consult an accountant. They can tell you whether or not it can be suitable for your business plans. If they find no problems, they can suggest the best loan structure and help with the payment structure while preparing the essential financial statements.

You require help with financial reporting

If you plan to approach investors to make investments in your business, they will consider your company’s financial records essential in making decisions. You will be required to produce accurate reports on your cash flow statements, balance sheet, and profit and loss statements.


  • An accountant can arrange these documents for you, ensuring they are accurate and include all the necessary information. When you have all the business finance documents organised, outside investors can feel secure to invest money in your business.
  • After you enlist investment, you will have to make a periodical compilation of all financial reports and statements to share them with your stakeholders. For these duties also, you will need an accountant.



Many accounting firms can help you find the perfect accountant for your business. You should consult with multiple professionals, and after comparing them, you must choose the one who is ideal for your business needs.