EXPENSES • 24 NOVEMBER 2022 • 5 MIN READ

The cost of getting an accountant for your small business in Australia

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What’s the difference between a bookkeeper and an accountant?

What factors affect accountant costs?

Do I need an accountant for my small business?

Dealing with accounting can be tedious and stressful, but it’s necessary chore for every small business owner. It can be challenging to balance your business, maintain good accounting records, analysing financial statements, and complying with tax deadlines. Hence, hiring an accountant is a wise decision. Although it’s considered an overhead expense, paying an accountant ensures that your finances are in check, comply with the law, and often save you far more in tax that you spend on the accountant’s fees.

The cost of an accountant in Australia ranges from around $1,000 to $5,000 a year, this could be either a fixed monthly fee or an hourly charge (normally between $100 to $300). However, other factors, such as the scope of the work and the accountant's experience and expertise must be considered as well.

What’s the difference between a bookkeeper and an accountant?

Bookkeeping and accounting are integral parts of your business’s finances. Many business owners think they are one and the same, however, there are a few key differences.

A bookkeeper is typically involved in recording business transactions (e.g., payroll, invoicing, payment of bills etc). Their main focus is to make sure the accounting records are accurate and up to date. An accountant provides insights based on financial data. They review the business’s financial statements and reports, budget, prepare and file tax returns, and analyse business performance. Often, accounting providers will offer bookkeeping services, like Beany.

What factors affect accountant costs?

The cost of an accountant commonly depends on several factors such as business size, expertise, business timing, experience, level of accounting support you need, and location.

Business size

The general rule applies when it comes to the cost of a small business accountant: the bigger and more complex your business is, the more the accountant needs to review. Compared to a small business that is operating under a sole trader structure, larger companies may likely have more transactions. This means accountants need to spend more time reviewing and filing your tax returns.

At Beany, our core packages are based on your business's gross annual income. You can opt-in for our Form Package with a monthly fee of $195 (GST exclusive price) if your annual gross earning is up to 250k. If your income exceeds this threshold, you can choose other packages such as Flow or Flex.

Expertise

Some accountants have vast experience in specific industries (e.g., construction, farming, real estate). For example, the cost of hiring an accountant specialising in the construction industry might be higher due to its complexity. Not only do they have to know and comply with specific laws and regulations, but they also will have an in-depth understanding on land tax, inventory, and capital gains tax.

Business timing

If you’re looking for an accountant closer to the date when your tax is due, the cost can also increase. Consult an accountant prior to filing so you avoid the stress of cramming and the extra cost of expediting the process.

Another option is to hire an accountant who offers fixed monthly fees. For example, Beany breaks your accountant fees into 12 months and you’re guaranteed to pay a fixed monthly fee. The packages offer tax return service plus returns for 2 shareholders. Completing and filing ASIC annual returns is also included.

Your accounts are in good hands with Beany, we’ll send you an alert and your dedicated accountant will do everything you need after completing the hassle-free questionnaire (You save time sending heaps of paperwork to your accountant!).

Experience level

Experience plays a role in how much an accountant costs. A certified accountant with more experience will be more expensive. Although you can choose to use a less expensive accountant, be sure to do your due diligence to see if they meet your expectations.

Level of accounting support

Businesses operating under different business structures have an impact on the level of accounting support you need. Sole traders won’t need the same level of support as a business operating under a trust or company structure. The bare minimum support you need from your accountant is to meet compliance with the ATO and ASIC. However, if you’re running a small business as a sole trader, your accounting and tax requirements will be more straightforward than trusts or companies. You can read more on business structure in this article.

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Do I need an accountant for my small business?

It is common for small business owners to believe that they don't need an accountant if they’re using accounting software. Technology certainly helps, but hiring an accountant will ensure you're properly guided and compliant with laws and regulations. Having them on board not only can help you improve your financial systems, but also eliminate the headache when it comes to understanding the nuances behind the key numbers and enabling you to grow your business further.

Who are Beany?

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world.

We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.