Cost of Hiring a Small Business Tax Accountant in Australia

Running a small business in Australia comes with a variety of responsibilities none more critical than managing your finances and taxes. For many entrepreneurs, hiring a Small Business Tax Accountant is a wise investment that saves time, reduces errors, and helps maintain compliance with the Australian Taxation Office (ATO). But what exactly does it cost to hire an accountant, and what value do they bring?

In this article, we break down the typical costs of hiring a small business tax accountant in Australia, the range of services they offer, and why engaging a qualified accountant in Perth or any other major city can be crucial for your business’s financial health.

Why You Need a Small Business Tax Accountant

A Small Business Tax Accountant offers expertise in tax laws, business structures, GST, deductions, and financial strategy. Their job isn't just about crunching numbers—they provide insights that can help grow your business and reduce your tax liabilities.

Some key roles they perform include:

• Preparing and lodging tax returns
• Providing tax planning and minimisation advice
• Offering business structure guidance
• Managing BAS accounting services
• Ensuring compliance with changing tax laws
• Helping with cash flow forecasting and budgeting

Small business owners often wear many hats, but tax and compliance are areas where professional support can make a significant difference.

Average Cost of Hiring a Tax Accountant in Australia

The cost of hiring a Small Business Tax Accountant can vary based on location, the complexity of your finances, and the services you require. Here’s a general breakdown:

1. Hourly Rates

Most accountants charge by the hour, especially for ad-hoc services. The average hourly rate in Australia ranges from $100 to $350, depending on the accountant’s experience and the complexity of the task.

2. Fixed Packages

Some accountants offer fixed-fee packages tailored to small businesses. These packages often include tax return preparation, BAS accounting services, bookkeeping, and business advice.

Typical package prices:

• Basic Package: $100–$300/month (includes quarterly BAS, annual tax return)
• Mid-Level Package: $300–$600/month (includes bookkeeping, BAS, and basic advisory)
• Premium Package: $600–$1,000+/month (includes payroll, strategy sessions, financial reporting)

3. One-Off Services

If you only need specific services, such as a tax return or BAS lodgement, here’s what you might pay:

• Small Business Tax Return: $400–$800
• Quarterly BAS Lodgement: $150–$300
• Bookkeeping Services: $50–$100/hour
• Business Setup Advice: $300–$600 (one-time fee)

Factors Affecting the Cost

Several factors influence what you’ll pay for accounting services:

1. Location

Rates vary depending on your city. For instance, an accountant in Perth might charge slightly less than one based in Sydney or Melbourne, though this isn’t always the case. Local market demand and the cost of living also play a role.

2. Business Complexity

A business with multiple income streams, employees, inventory, and complex transactions will require more time and expertise, increasing the cost of services.

3. Software Integration

If your business uses cloud accounting tools like Xero, MYOB, or QuickBooks, it can streamline the work for your accountant and potentially reduce costs. However, setting up and integrating software may carry an upfront cost.

4. Experience and Qualifications

Hiring a highly experienced accountant or tax agent may come at a premium, but it often means better insights and fewer compliance issues.

Benefits of Hiring a Small Business Tax Accountant

Hiring a professional may seem like a big expense, especially for startups or micro-businesses, but the return on investment can be significant. Here are the key benefits:

1. Tax Compliance

Avoid fines and penalties by staying up to date with ATO regulations. A tax accountant ensures accurate and timely lodgement of your returns and BAS accounting services.

2. Tax Savings

A skilled accountant can help identify legal deductions and tax-saving opportunities you might miss on your own.

3. Time Savings

Free yourself from paperwork and spend more time focusing on business development.

4. Strategic Advice

An accountant can offer business strategy, cash flow management, and long-term financial planning.

5. Audit Support

In case of an ATO audit, having an accountant can be a lifesaver. They ensure your records are audit-ready and can liaise with the tax office on your behalf.

Choosing the Right Accountant in Perth or Across Australia

When choosing a Small Business Tax Accountant or accountant in Perth, here are a few things to consider:

• Credentials: Make sure they are registered with the Tax Practitioners Board (TPB).
• Experience: Look for someone who has experience with small businesses in your industry.
• Software Compatibility: Choose an accountant familiar with the tools you use.
• Service Range: Ensure they offer all the services you need, including BAS accounting services, tax planning, and bookkeeping.
• Communication: A good accountant should be approachable and willing to explain financial matters in plain language.

DIY vs Professional Accounting: Is It Worth It?

Many small business owners consider doing their own taxes to save money. While DIY accounting tools can help with basic record-keeping, they fall short when it comes to compliance, strategy, and tax efficiency.

Here’s a simple comparison:

Task	DIY Accounting	Professional Accountant
Tax Return Preparation	Limited	Accurate & Compliant
BAS Lodgement	Manual Effort	Automated & Timely
Strategic Advice	None	Expert Recommendations
Audit Support	None	Full Representation
Time Commitment	High	Low

Conclusion

Hiring a Small Business Tax Accountant in Australia is an investment in the long-term success and sustainability of your business. Whether you're looking for an experienced accountant in Perth or need comprehensive BAS accounting services, the right accountant can help you stay compliant, save money, and plan for the future.

Costs vary depending on your needs, but with options ranging from hourly rates to all-inclusive packages, there’s a solution for every business size and budget. Instead of viewing it as an expense, think of professional accounting as a strategic business asset.