Six reasons your business needs an accountant

Running a small-to-medium business can be incredibly rewarding, but challenging at the same time – especially when it comes to keeping your finances in check. As the end of the financial year approaches, many business owners turn to their trusted accountants to ensure all is in order. 

While accountants are highly in demand at tax time, their true value extends well beyond that. Working with a financial expert throughout the year can reduce your administrative burden, support smarter business decisions, and provide you with valuable insights into business and market trends. Whether you're just getting started or looking to grow, an accountant can be a valuable partner in your success.

Here are six reasons why small business owners should consider working strategically with their accountants year-round. 

1. Strategic planning 

Strategic financial planning with an accountant gives you a clearer view of where you want to go and how to get there. Whether your goals include expanding your business, hiring more staff, or simply increasing your profits, accountants can help you plan the best way forward.

Your accountant may assist with:

• aligning your budget with your growth plans to ensure your money is being spent in the most appropriate way
• advising on the right business structure to support growth plans
• assessing resource allocations and identifying cost-saving opportunities
• keeping you informed of industry trends, so your business remains aligned with changing consumer needs and expectations.

Strategic accounting can also boost your business’ valuation. Having the right structure in place and maintaining detailed, accurate financial records can give prospective buyers or investors a clearer understanding of your operations and profitability. This can make it easier to secure funding or prepare for a future sale.

Helpful ANZ resources:

• Business plans and templates: How to get started

2. Financial health monitoring 

Much like people, businesses require regular health checks to ensure they’re in good shape. Your accountant has the expertise to monitor your business’ financial health, typically through financial reporting.  

Your accountant may: 

• ensure your key financial documents, such as your profit and loss statement and balance sheet, are correct and up to date
• calculate your break-even point
• review your cash flow and profit margins 
• analyse key drivers of your business performance
• identify your risks and liabilities
• assess your business’ overall financial performance relative to market conditions
• compare your performance against your goals and targets and discuss what can be improved for next year.  

These insights can help business owners spot potential issues early and make data-informed decisions to improve short and long-term performance.

Helpful ANZ resources:

• Business financial documents: Master the basics
• How to calculate break-even point

3. Improving time management 

If you're juggling bookkeeping, payroll, reporting and forecasting alone, chances are you're spending too much time on admin and not enough time on your business.

Outsourcing financial admin frees up your time to focus on what you do best. 

Accountants can provide a range of helpful services, including key tasks like: 

• generating financial reports 
• bookkeeping
• creating cash-flow forecasts 
• developing business plans 
• conducting tax audits
• preparing ASIC lodgements
• helping to set up new businesses. 

Working with an accountant not only saves you time, lightens your workload and improves efficiency, but also helps ensure your financial reports are accurate and submitted on time, minimising the risk of penalties for late lodgements.

Helpful ANZ resources:

• Cash flow forecast and templates: What you need to know

4. Financial insights 

Your accountant can provide a range of additional advisory services or leverage their intimate understanding of your business to help with: 

• attracting and retaining customers 
• business growth strategies 
• managing your pricing strategy 
• optimising stock ordering processes 
• accounting for unsold inventory
• suggesting improvements to revenue and cash flow
• investing your profits. 

Whether you're looking to make small improvements or implementing major strategic shifts, your accountant’s advisory experience can help you identify opportunities and support your financial decisions.

5. Tax preparation and planning

Meeting your tax obligations is a critical component of running a business. Unfortunately, tax law is complex and technical, and navigating taxes and deductions yourself can be difficult and time consuming.  

When choosing an accountant to work with, consider that not all accountants are registered tax agents. Some accountants provide bookkeeping services but don’t handle tax lodgements, while tax agents generally focus on meeting tax obligations and may not manage your day-to-day accounting tasks.

Using an accountant who is also a registered tax agent can help your business work toward achieving its financial goals, while ensuring tax obligations are met and eligible deductions are claimed.

A registered tax agent can: 

• prepare your accounts for the year
• update you on changes to the tax laws that impact your business
• provide advice to ensure your business is compliant with all applicable taxes and levies
• check which deductions you’re eligible to receive
• provide analysis and insights on the financial results for the past year.

This can streamline and expedite the tax process and potentially unlock new efficiencies within your business. Keep in mind that the more accurate your bookkeeping is, the more effectively your accountant can support you. 

Helpful ANZ resources: 

• Your essential EOFY checklist
• Make BAS time simple – understanding GST and BAS for small business

Australian Tax Office (ATO) and business.gov.au resources: 

• Tax time toolkit for small business
• End of financial year checklist

6. Compliance and reporting obligations 

Depending on your industry and your business structure, owning a business comes with many legal obligations to several stakeholders, including shareholders, lenders, ASIC and the ATO, your creditors and your employees.  

These obligations can change over time as laws and standards change, making it difficult for owners to ensure they’re fully compliant. 

An accountant can assist by: 

• notifying you of upcoming legal changes 
• providing payroll and superannuation support to ensure your business is compliant with employment laws 
• conducting internal audits of business dealings and accounts. 

This final point is crucial – internal audits can help identify possible ‘red flags’ in the business before they develop into real problems, helping to protect your business’ financial integrity. Regular reviews with an accountant could help you mitigate risks and keep operations running smoothly.

Helpful ANZ resources:

• Business laws for small business – stay protected

Partnering for success 

Engaging an accountant regularly, rather than just at tax time, can help provide your business the financial clarity and confidence it needs to grow. With the right support, you can make informed decisions, reduce admin stress and focus on what matters most – building a thriving business.

Consider scheduling regular check ins with your accountant so they can support your business year round.