It’s not uncommon for small business owners to wear many different hats. But if you don’t have an accounting background, looking after your own tax (including keeping track of all the legal requirements and deductions you're eligible for) can be difficult.
That’s why hiring a professional can be so beneficial for small business owners. They don’t just save you valuable time, they’ll also make sure to protect your business, improve your financial clarity, and help you get the most out of your tax returns.
In this blog, we’ll discuss how much do small business accountants cost and what the benefits of hiring an accountant are. But first things first…
What does a Tax Accountant Do?
A tax accountant is a specialised accountant who helps businesses manage their tax obligations accurately, legally, and efficiently. They ensure your business stays compliant with the ATO while helping you legally minimise what you owe through eligible deductions. Plus, a tax accountant can make sure that your taxes are lodged properly and on time, helping you avoid mistakes or common pitfalls which may lead to further costs or penalties.
When it comes to business tax, there’s more to manage than just your annual return. From payroll tax to GST to company income tax, a tax accountant can help you make sense of everything clearly. For more information on how accounting helps small businesses, check out our website.
Here’s a quick breakdown of business tax:
- Payroll Tax: Applies if your total wages exceed a certain threshold. This includes employee salaries, superannuation, bonuses, and even some contractor payments.
- GST and BAS: If your business earns over $75,000 annually, you must register for Goods and Services Tax (GST). You’ll also need to regularly lodge a Business Activity Statement (BAS), which includes GST collected, PAYG Withholding, and PAYG Instalments.
- Company Tax Returns: Depending on your company size, the standard tax rate is between 25% and 30%. Your tax accountant will calculate your business income, apply deductions, and ensure your return is accurate and submitted on time.
How Much Does a Small Business Accountant Cost
The cost of a tax accountant for a small business can range anywhere from $100 to $300+ per hour, depending on the complexity of your needs and the experience of the accountant. Some tax accountants may also offer fixed-fee packages for standard services like annual tax returns, BAS lodgements, or tax planning sessions.
If you're wondering how much does an accountant cost for a small businesses, here’s what typically affects the cost:
- Type of services required: A simple tax return is likely to cost a small hourly fee depending on how long it takes, while ongoing tax planning and business advice may be charged on a monthly
- Size and complexity of your business: Smaller businesses are generally less complex, while larger businesses with more staff, income streams and requirements means more time and expertise required.
- Frequency of service: Some small businesses choose to seek one-off support, while other businesses opt for a full-service tax accountant to manage their accounts throughout the year.
If you’re also wondering about bookkeeping services, contact Spark Accountants for more info on how much bookkeeping costs for a business.
The Benefits of Using a Tax Accountant for Small Businesses
Here’s how hiring a tax accountant can benefit your business:
Save Time and Reduce Stress
Tax laws are complicated for anyone who isn’t an expert, and they’re constantly changing. A tax accountant can handle all your paperwork, lodgements, and make sure you’re acting within the legal boundaries of the law. So you can relax knowing everything is accounted for.
Minimise Your Tax Bill
Many business expenses are tax deductible, helping you improve your bottom line with savings that add up. However, many small businesses miss out on these savings because they don’t know what they’re eligible to claim. A tax accountant will help you access every eligible deduction, credit, and offset to minimise your tax bill and maximise your return.
Keep Your Records Accurate
Business Activity Statements and tax returns require a lot of accurate data. One wrong number on your paperwork can lead to ATO penalties. Having a tax accountant who knows what they’re doing will help you stay compliant and ready for audits. Plus, if disputes arise, you’ll have someone by your side to handle all communication and offer professional representation.
Strategic Financial Advice
Beyond filing returns, a great tax accountant can provide tailored tax planning and financial structuring advice to support growth and long-term savings in your business.
Contact Spark Accountants For Tax Accounting Today!
Looking for a tax accountant to help your small business function at its best? Spark Accountants are here to help.
As well as helping you manage complicated tax obligations like PAYG Withholding, GST, and BAS, and company tax returns, we also offer comprehensive, full-service accounting for businesses looking for end-to-end financial support.
Let’s take the stress out of tax and help your business move forward with confidence. Contact us today and we can discusshow much an accountant will cost for your small business.
Call us on 07 2111 8147 or send us a message to get started.
