When you’re running a small business, managing taxes often feels like one of the biggest burdens. Tax laws change all the time, the reporting requirements can get complex, and a single mistake can cost you money.
So perhaps it’s time to consider that maybe hiring an accountant in North Sydney is worth the expense while also being a good investment.
A small business tax accountant is in charge of ensuring tax compliance, maximising deductions, and providing long-term financial guidance. They can take control of your finances while you focus on growing your business.
This guide is designed to help you understand those costs, so you can make informed decisions about hiring a tax accountant for your small business in North Sydney.
Tax Account Costs
Accounting fees differ across various territories and states in Australia. In larger urban centres, you can expect higher hourly small business accountant fees compared to rural or remote areas.
Here’s a breakdown of what you can expect.
| State/Territory | Average Hourly Rate |
|---|---|
| New South Wales | $100 – $260 |
| Victoria | $110 – $250 |
| Queensland | $100 – $250 |
| South Australia | $100 – $235 |
| Western Australia | $130 – $265 |
| Tasmania | $90 – $220 |
| Northern Territory | $120 – $240 |
| Australian Capital Territory | $110 – $230 |
Factors that Influence Accountant Fees for a Small Business in Australia
The cost of hiring a small business accountant, particularly in NSW, depends on several factors, and you may encounter different fee ranges depending on:
Types of Services Needed
If you require additional services from your accountant, such as them teaching you about the basic goods and services tax ruling, bank reconciliation, etc., it will push the fees up. But if you’ve been doing business for a long time and already have some knowledge about tax deadlines and certain functions, then you’ll require less help.
Your business’ structure also has an impact on the type of accounting services you need. Sole traders don’t need the same level of support as a business that operates under trusts, a partnership, or corporations.
For businesses that require business advisory services, auditing, and tax planning for growth and acquisitions, the cost may be higher due to the specialised expertise needed. They cost more than the basic bookkeeping or tax return preparations.
Business Size and Revenue
A general rule to remember: the bigger and more complex your business is, the more the accountant needs to review. Larger companies have more transactions compared to a small business that operates under a sole trader structure.
For instance, an accountant for a sole trader has less accounting fees than a company with a multi-layered financial structure.
Higher revenue and transaction volumes can increase accounting fees, because they require more detailed reporting and management.
Level of Expertise and Experience
Some accountants have years of experience in specific industries — from construction to farming to real estate to restaurant management, etc.
For example, the cost of hiring a small business accountant who specialises in the construction industry might be higher because of how complex the industry can get. Apart from knowing and complying with specific laws and regulations, they also need in-depth understanding on inventory, ringfencing, and bright-line rules.
The years of experience that a small business tax accountant has, also plays a role in how much their services cost. A certified accountant with more experience will be more expensive.
How to Determine the Right Level of Accounting Support for Your Business
The level of accounting support your business needs depends on both its operational complexity and long-term objectives. Accounting services for small businesses range from basic tax return preparation to comprehensive advisory services that support growth, streamline operations, and assist with strategic decision-making.
- Sole Traders and Freelancers: Basic services like tax return preparation and record-keeping may be sufficient. Most of the time, these types of businesses only need support during tax season or for the occasional advice on managing deductible expenses.
- Partnerships and Growing Startups: Additional support such as quarterly reporting, tax planning, and cash flow management may be needed. As these businesses grow, they may require more regular insights into their financial health. A small business tax accountant can provide advisory services and help these businesses do budgeting and financial forecasting to navigate expansion opportunities.
- Established Small to Medium Enterprises (SMEs): For businesses with multiple employees, more complex revenue streams, or diverse operations, advanced support becomes crucial. Businesses of this size require regular updates on profitability, expenses, and tax obligations, plus taxation accounting services, cash flow management, payroll management, preparing Business Activity Statements (BAS), and ensuring ongoing compliance with ATO regulations.
Each level of accounting support offers unique benefits. Assessing your current and future needs with an accountant can help you create a plan that grows with your business — whether that involves simple tax filings, strategic financial planning, or an ongoing advisory role.
The Risks of Choosing a Cheap Accountant
But therein lies the question: How much does an accountant cost?
A North Sydney-based small business accountant costs can range from a few hundred to several thousand dollars annually.
It’s tempting to opt for a low-cost accountant. It may even show itself as a way to save on business expenses, but it can end up costing you much more in the long run.
Accounting plays an important role in a thriving business. Everything from maintaining compliance to acquiring potential tax savings to supporting a business’ financial health, accounting handles all of that.
The wrong choice of accountant runs your business the risk of:
- Errors in tax filings and reporting. Missed deadlines and inaccurate filings can lead to costly fines and penalties from the Australian Taxation Office (ATO).
- Missed tax savings and deductions. A skilled small business tax accountant identifies potential tax deductions and credits to maximise savings for you.
- Non-compliance with Australian accounting standards. It comes from a lack of understanding current ATO guidelines and failing to stay on top of changing tax regulations. For small businesses, non-compliance leads to audits, penalties, or legal issues that negatively impact operations and damage the business’s reputation.
- Hidden costs. Upfront fees might be lower with a budget accountant, but hidden costs can accumulate. For example, having to hire another accountant to amend inaccurate filings, recover from non-compliance issues, or identify overlooked tax savings can result in unplanned expenses.
The cost of a budget accountant may be low, but the potential financial consequences can be high. Investing in a knowledgeable, skilled accountant gets you a partner who helps protect your business from errors, secures tax savings, and supports your growth goals with confidence.
The Benefits of Hiring a Skilled Accountant
A skilled Sydney-based accountant (or accounting team) offers more than just routine tax filing. They will take care of the financial aspects of your business for you while you focus on growing your company.
1. Maximised Tax Savings and Compliance
An experienced accountant understands the intricacies of tax law.
They can identify deductions and credits you may not know about, and apply certain strategies to minimise your taxable income legally. You can save money each financial year while remaining compliant with ATO regulations.
2. Tailored Financial and Strategic Advice
Skilled accountants can provide business advisory services too. They can help you set clear financial goals and develop strategies for achieving them. They can assist with cash flow management, forecasting, and budgeting to support your business’s financial health.
This kind of insight is particularly valuable when it comes to growth planning, as they can help you decide when and how to invest in expansion or new services.
3. Improved Cash Flow and Cost Efficiency
Cash flow management is vital for any small business, and a professional accountant knows this. They can recommend ways to streamline expenses, reduce unnecessary spending, and improve operational efficiency.
For instance, your accountant might suggest improvements to inventory management or help optimise overhead costs to leave you with more capital to reinvest in your business.
4. Access to Modern Tools and Technologies
An accountant who is up-to-date with the latest accounting software can offer time-saving solutions for reporting and bookkeeping.
They can help integrate these systems with other business tools you might already be using, such as CRM or inventory management software. This kind of integration can create efficiencies across departments and streamline data management.
Having access to the latest accounting software and technology can help you make data-driven decisions that drive your business forward.
5. Proactive Financial Problem-solving
Skilled accountants are trained to spot potential financial risks before they become issues. For example, if they notice any cash flow inconsistencies, high expenses, or sudden changes in revenue, they can address these proactively so you can steer clear of financial difficulties.
6. Enhanced Business Growth and Scalability
As the business grows, the complexity of your financial needs grow alongside it.
An experienced accountant will scale their business accounting services as your business expands. They can provide additional support with budgeting, tax planning, and even strategic advice for mergers or acquisitions.
A financial partner who understands your long-term vision can help your business grow seamlessly and remain financially sustainable.
7. Legal Compliance and Better Financial Reporting
Australian businesses are required to adhere to strict regulations, such as employee wages, superannuation contributions, and regular financial reporting.
A skilled accountant will help you meet these compliance requirements. They can also assist with year-end reporting, which is essential for accurate tax filings. Plus it gives you a clear picture of your business’s annual performance.
Tips for Finding the Right Small Business Accountant in North Sydney
Hiring the best small business tax accountant in Sydney involves more than just comparing fees. A thorough selection process helps ensure that your accountant can provide ongoing value and assist with more advanced needs when the time comes.
Look for:
A Small Business Tax Accountant that Understands Your Needs
Your business and your accounting needs are unique. In order to find the right accountant, you need to consider what type of services you need from them.
Do you need an accountant to handle day-to-day bookkeeping, or do you need someone who can give your business strategic advice for business growth? Consider if your business needs an accountant with expertise in international business, tax laws, or a particular industry.
Understanding exactly what your business needs can help you choose an accountant that would best fit your needs and goals.
Qualifications and Experience
Only certified professionals in Australia should handle your finances. A Chartered Accountant (CA) will have passed rigorous exams and met specific state licensing requirements.
Their experience in your industry matters as well. They have to know the common challenges, norms, and regulations around your sector. Their level of knowledge and experience can provide your business with valuable context for advice and decision-making.
Familiarity with Accounting Software
In this digital age, most financial processes are cloud-based and automated. Access to these types of technology makes processes efficient. Choose an accountant who is comfortable using modern technology and business accounting automation.
Choosing the Right Accountant for Your Small Business
Selecting a small business tax accountant is an investment in your business’s success. Instead of focusing solely on costs, consider the value that an experienced accountant can provide through tailored advice and proactive financial management.
If you’re a NSW-based business owner seeking reliable accounting, contact us to discuss how Verus can help your business achieve its financial goals.
