Did you know that there are different types of accountants who can support your small business?
Many people think accountants only deal with tax returns and balance sheets.
While that’s part of what we do, it’s not the whole story.
Some accountants are deeply involved in your business’s growth, guiding you on key financial decisions every step of the way. Others focus mainly on tax compliance and might only check in once a year.
Knowing the difference can save you headaches—and help your business reach its full potential.
In this post, I’ll walk you through the different types of accountants, their roles and how choosing the right one can help you achieve your business goals. By the end of this article, you’ll have a clearer sense of which accountant suits your needs best.
The Business Advisor Accountant
As a business owner, you need more than someone who files your taxes once a year—you need a partner who helps drive your business forward.
That’s where a business advisor accountant comes in. We don’t just analyse numbers:
We work alongside you, actively guiding your financial decisions throughout the year.
A business advisor accountant can be a game-changer. Here’s why:
- Big-Picture Financial Planning: We help you choose the right business structure, set up smart budgets and establish financial goals that align with your vision for growth.
- Strategic Decision-Making: Before you make major business moves like buying new equipment, expanding operations, or making significant investments, we ensure the decision is financially sound and structured to benefit your business long-term. Ideally, clients consult us before making big decisions, allowing us to structure purchases or investments for optimal tax efficiency and compliance.
- Accountability and Ongoing Support: Regular check-ins prevent you from drifting off track. We will remind you of your goals and help you adjust as circumstances change. These check-ins typically occur quarterly, ensuring your financial goals stay on track and plans can be adjusted as needed.
A business advisor accountant is invaluable if you’re serious about growing your business and avoiding costly mistakes.
The Tax-Focused Accountant
On the other hand, if your main concern is staying compliant and making sure your taxes are filed correctly, a tax-focused accountant might be what you need.
These accountants specialise in keeping your business compliant with tax laws and regulations. They mainly review past financial activities and focus less on future planning.
Here’s what to expect from a tax-focused accountant:
- Compliance & Tax Filings: They handle tax returns, prepare financial statements and ensure your BAS is lodged on time. Their expertise is in accurately meeting all your tax obligations, but these financial statements represent historical data and offer limited insight for future planning or strategic decision-making.
- Limited Engagement: Typically, you’ll meet with a tax accountant once or twice a year, usually around tax season.
- For Established Businesses: A tax-focused accountant might suit your needs if you already have an internal accounting team or feel confident handling day-to-day financial management.
While a tax accountant is perfect for businesses that need minimal financial guidance beyond taxes, they’re less involved in growth strategy.
If compliance is your primary need, they’ll do the job effectively. However, they might not be the best fit if you seek long-term advice or guidance on investments and expansion.
How to Choose the Right Accountant
Choosing the right accountant is like bringing on a key player for your business. They need to understand your goals, provide the right kind of support, and fit into your long-term plans.
Start by assessing your needs.
A professional accountant offering advisory services may be the best fit if you want comprehensive financial guidance to grow your business. They can assist with important decisions like business structure setup, cash flow management, and financial goal-setting.
When you’re ready to find an accountant, treat the process like you’re hiring a key employee for your business. Here are some steps to follow:
1. Meet with multiple accountants: Don’t settle for the first accountant you talk to. Meeting with several allows you to compare and find the best fit.
2. Prepare a set of questions: Before your meetings, write down your most significant questions. This ensures you cover all your concerns and can compare responses.
3. Consider more than just the financials: While cost is a major consideration, don’t base your decision solely on who offers the lowest fees. Consider the range of services offered, their expertise, and how well you communicate with each other.
4. Assess their availability: Ask about their capacity to take on new clients and how often you can consult with them throughout the year.
When you’re meeting with potential accountants, approach it like an interview. Ask the right questions to make sure they’re a good fit for your business:
- What services do you offer beyond tax preparation?
- What’s your availability, and how often will we meet? You’ll want to ensure they can provide regular support and dedicate enough time to your business.
- How do you approach long-term financial planning and strategy?
Don’t forget to trust your instincts.
Remember, accounting isn’t just about numbers—it’s also about people. Beyond technical skills, choose someone you’re comfortable working with. It should be someone who understands your business, communicates clearly, and personally feels like a good fit.
The right accountant should feel like a trusted advisor and partner in your business success.
Conclusion
Choosing the right accountant is a crucial decision that can directly influence the future of your business.
Some accountants focus on tax compliance, while others, like myself, take on a more strategic, proactive role—helping you make informed financial decisions that drive your business forward.
By understanding the different types of accountants and knowing what to expect, you can choose the one that will be your long-term financial partner.
Financial decisions and tax strategies can have long-lasting impacts on your business, so it’s essential to consult with your accountant before making major moves. Regular conversations with your accountant can help you avoid costly mistakes and keep you on track toward your financial goals.
Ready to take your business finances to the next level?
Book a consultation today, and let’s explore how we can work together to streamline your financial strategy, avoid costly mistakes and set your business up for long-term success. The sooner we start, the sooner you’ll see the benefits of strategic business advice.
