Accounting is one of the biggest responsibilities that businesses face – from tracking expenses to financial forecasting, it can quickly become confusing, stressful, and time-consuming. Then add taxes into the mix. Between navigating ATO regulations, managing tax deductions, and trying to avoid constant mistakes or penalties, it’s easy for businesses to feel overwhelmed. That’s where a tax accountant comes in.
A great tax accountant doesn’t just file paperwork. They’re an expert in tax laws and regulations, helping you save time, money, and a lot of headaches. From minimising your tax bill legally to keeping your business compliant, they’re a game-changer for any small business looking to stay ahead.
In this blog, we’ll break down exactly what a tax accountant does, how they help small businesses like yours, andwhat tax accountants charge. But before we talk about what business tax actually involves, let’s talk about what accounting does for a business.
What Does Accounting Do for a Business?
Starting with a more general definition for anyone who needs a quick explanation of business accounting, accounting is a broad term that encompasses all finance related activities in a business. This includes tracking and recording expenses, compiling financial statements and ensuring employees are paid on time.
Essentially, accounting is making sure that the business can continue to function financially, and it requires a strong understanding of financial planning, maintaining a steady cash flow, and making sure all the legal obligations of the business are met.
While some accountants are hired in-house on a full-time basis, many businesses, particularly smaller businesses, choose to outsource accounting services according to their needs.
A Quick Overview of Business Tax
Here’s a quick breakdown of the main taxes your business may need to manage:
Payroll Tax
Payroll tax applies if your total wages exceed a certain threshold. This includes salaries, superannuation, bonuses, and even some contractor payments. Rates vary by state, and if you're employing staff, you’re required to withhold a portion of their wages for tax, known as PAYG Withholding.
GST and BAS
If you’re earning over $75,000 annually, you’ll need to register for Goods and Services Tax (GST) which is 10% added to most goods and services. Once registered, you’ll need to lodge a Business Activity Statement (BAS), either monthly or quarterly. This includes GST collected, business expenses, PAYG Instalments, and PAYG Withholding.
Company Tax Returns
If you’re operating as a company, you must lodge an annual tax return. The standard company tax rate is 25%–30%, depending on the size of your company. Your company tax return outlines all your income, deductions, and how much tax your business owes. A good tax accountant will make sure you’re maximising deductions and keep everything compliant with ATO regulations.
What Does a Tax Accountant Do?
A tax accountant does many things, but in short, they help your business accurately manage tax obligations, avoid costly mistakes, and even pay less tax by maximising eligible deductions. Here’s what a tax accountant typically handles:
- Offer tax planning support by helping businesses review income and profits before the end of the financial year in order to reduce and prepare for tax liabilities
- Prepare and submit your business tax returns, ensuring everything is accurate, complete, and filed on time – whether it’s income tax, BAS, GST, or other obligations.
- Help you plan ahead to reduce your future tax burden. That includes advising on business structure, income distribution, and timing of purchases or investments.
- Ensure you’re claiming every eligible deduction, credit, and offset your business qualifies for.
- They can advise on the most tax-efficient way to structure your business – whether that’s as a sole trader, partnership, company, or trust – to align with your financial goals.
- Represent you in case of a tax audit or in a dispute with the ATO. They can handle communications, respond to queries, and guide you through reviews.
What do Tax Accountants Charge?
Understandably, one of the most commonly asked questions is what do tax accountants charge? However, it’s difficult to pinpoint an exact figure because of several reasons.
Firstly, the cost may depend on the extent of the services you require. Tax accountants will charge a much smaller fee for a one-off annual tax return than they will for monthly ongoing accounting services, payroll, or BAS support. This is because more complex needs require more time and expertise.
Similarly, the cost may depend on the scope of the work and the size of the business. For example, how much small business accountants cost will differ from how much they will cost for larger businesses.
However, despite the costs of a tax accountant, the value they’ll bring to your business often far outweighs the price. A great accountant will help you save money, avoid costly mistakes, and handle all the nitty gritty details of your legal tax obligations.
Contact Spark Accountants For Small Business Tax Support
From GST and payroll tax to accurate company tax returns, managing your business’s tax obligations can quickly become overwhelming – especially without professional support. That’s why so many businesses turn to expert tax accountants who know how to simplify the process, maximise deductions, and keep you running with legal compliance.
At Spark Accountants, we take the stress off your plate and help you stay focused on running your business.
Ready to get started? Reach out to our team today for tailored tax advice and a no-obligation quote. Or, check out our blogs for more information on how accountants can save your business money.
