What type of accountant or adviser does my business need?

The right help depends on the job. For day-to-day records, you may want a bookkeeper. To prepare and lodge your BAS, you need a registered BAS agent or a registered tax agent. For your tax return, tax advice and dealing with the ATO, you need a registered tax agent. For the bigger picture, such as structure, growth, reporting and financial decisions, most businesses use an accountant. Many accountants are also registered tax agents.

Some titles describe a legal registration, some describe membership of a professional body, and some only describe a role.

Titles, memberships and registrations are different things

• Professional qualification. The study and training they’ve completed.
• Professional membership or designation. CPA (CPA Australia), CA (Chartered Accountants Australia and New Zealand) and IPA membership (Institute of Public Accountants) are designations from professional bodies. CPA Australia says its designation comes with an assurance that it has “fully assessed and examined an accountant for competency and quality”.
• Public practice certificate. Each body has its own certificate for members who offer accounting services to the public. CPA Australia says any member providing public accounting services into Australia or New Zealand must hold a Limited Public Practice Certificate or a Public Practice Certificate. Chartered Accountants Australia and New Zealand says a member resident in Australia who is a principal in a practice providing accounting services to the public for reward must hold a Certificate of Public Practice. The IPA’s application form says a member who is a principal, director, owner or partner of a business providing accounting and related services to the public must hold a Professional Practice Certificate.
• Tax practitioner registration. This is a legal registration with the Tax Practitioners Board (TPB), and it is separate from membership. CPA Australia notes that separate registration requirements apply to anyone practising as a registered tax agent or BAS agent.
• Other statutory registrations. For example, financial advisers are listed on ASIC’s financial advisers register, and registered liquidators are registered with ASIC.
• Experience. Business advisory and industry experience are not registered anywhere. Ask about them directly.

“Business accountant”, “business adviser”, “management accountant”, “CFO” and “virtual CFO” are descriptions of a role or service. None of them is a single regulated designation. Check the membership and registrations of the person behind the title.

Comparison table

Professional	What they typically do	Registration or membership to check	Where to check
Bookkeeper	Records day-to-day transactions, invoices, banking and payroll	TPB registration if they provide BAS services	TPB register
Registered BAS agent	Prepares and advises on your BAS, and represents you to the ATO on BAS matters	TPB registration as a BAS agent	TPB register
Registered tax agent	Tax returns, BAS, tax advice and dealing with the ATO	TPB registration as a tax agent	TPB register
Accountant	Financial statements, analysis and financial decisions	Professional membership and public practice certificate, plus TPB registration for tax work	Professional body directory and TPB register
CPA	An accountant holding the CPA designation	CPA Australia membership and public practice certificate	Find a CPA or Verify a member (CPA Australia)
Chartered Accountant	An accountant holding the CA designation	Chartered Accountants Australia and New Zealand membership and Certificate of Public Practice	Find a CA
IPA member	An accountant who is a member of the IPA	IPA membership and Professional Practice Certificate	Find an Accountant (IPA)
Business accountant, management accountant or business adviser	Planning, budgeting, reporting and advice on running the business	No single designation. Check their membership and any TPB registration	Professional body directory and TPB register
CFO or virtual CFO	Senior financial management, forecasting and reporting	No single designation. Check their membership and any TPB registration	Professional body directory and TPB register
Financial adviser	Personal advice on investments, superannuation and life insurance	Listing on the financial advisers register	Moneysmart financial advisers register
Registered liquidator	Liquidations and other formal insolvency appointments	ASIC registration as a liquidator	ASIC professional registers search
Small business restructuring practitioner	Advises on and helps prepare a small business restructuring plan	Must be a registered liquidator	ASIC professional registers search

For links to each search tool, see find professional help. Unfamiliar terms are explained in the glossary.

Accountant vs bookkeeper

business.gov.au says a bookkeeper “keeps track of your day-to-day financial transactions in account books or accounting software”. This can include banking, preparing invoices, collecting payments, processing payroll, monitoring cash flow and preparing some financial statements.

An accountant works at a higher level. business.gov.au says an accountant can “analyse your business finances, prepare financial statements, help you make the right financial decisions”, including advice on starting a business, leasing, expansion, tax and reporting.

In short, a bookkeeper keeps the records, and an accountant uses them to advise you.

Accountant vs BAS agent

A registered BAS agent can only help with BAS matters. business.gov.au says BAS agents “can only prepare and give advice on your BAS. They can’t help you with your tax return.”

The TPB says BAS services cover areas such as GST, PAYG withholding, PAYG instalments, fringe benefits tax instalments, fuel tax credits, wine tax, luxury car tax, the super guarantee and taxable payments annual reports.

An accountant who is also a registered tax agent can help with your BAS and your tax return, and give broader advice. An accountant who isn’t registered with the TPB can’t charge you for tax agent services.

Accountant vs CFO

A chief financial officer (CFO) is a senior finance role inside a business, usually covering financial strategy, forecasting and reporting to owners or a board. A virtual CFO provides a similar service part time or on contract, often to a business that doesn’t need a full-time CFO.

An accountant in public practice usually advises from outside the business. CFO is a job title, not a registration. If a CFO or virtual CFO will also prepare or lodge your tax returns or BAS, check they’re registered with the TPB.

Accountant vs financial adviser

A financial adviser gives personal advice about financial products. Moneysmart says its financial advisers register covers “people who provide personal advice on investments, superannuation and life insurance”.

An accountant focuses on your business records, tax and financial decisions. Before taking personal advice on investments, super or insurance, check the adviser is on the register.

Do I need both a bookkeeper and an accountant?

Not always. It depends on how many transactions you have and how much time you have.

Many small businesses use a bookkeeper to keep the records up to date through the year, and an accountant or registered tax agent for tax returns, year-end financial statements and advice. Some accountants offer bookkeeping as well. Others ask you or your bookkeeper to keep the records so they can focus on advice.

If a bookkeeper will prepare or lodge your BAS, they must be registered. The TPB says data entry that doesn’t involve interpreting and applying a tax law is not a BAS service, but payroll services that do involve interpreting and applying a tax law are.

When should a small business use an accountant?

Common times to talk to an accountant include when you:

• choose or change your business structure (see sole trader vs company)
• need to lodge a tax return or want advice about tax
• plan to expand, hire staff, or buy or lease equipment or vehicles
• are behind on BAS or tax lodgements (see overdue BAS)
• see signs of cash-flow trouble (see cash-flow warning signs).

business.gov.au also notes that many business advisers offer free or low-cost advice, which you can search for with its adviser finder.

When might a growing business use a virtual CFO?

A virtual CFO may suit a business that has outgrown basic bookkeeping and year-end accounts but can’t justify a full-time finance executive, for example when you need regular forecasting, monthly management reports, or help preparing for investment or a sale. Because virtual CFO isn’t a regulated title, ask about their qualifications, professional membership, experience with businesses like yours, and whether they hold TPB registration.

Which registrations should I check?

• Tax agent or BAS agent. The TPB says you must not charge or receive a fee for a service you know is a tax agent service unless you’re a registered tax agent. It also says you, your company or partnership must be registered to provide BAS services for a fee or other reward. Use the TPB’s find a tax practitioner near you search, which shows each practitioner’s registration number, type and status.
• Financial adviser. Search the Moneysmart financial advisers register by name, number, ABN, suburb or postcode. It shows where the adviser has worked, their qualifications and training, their professional memberships, the products they can advise on, and whether they’ve been banned or disqualified.
• Registered liquidator. ASIC says a registered liquidator’s name and number appear on its register of liquidators. Use ASIC’s professional registers search.
• Small business restructuring practitioner. ASIC says only a person registered with ASIC as a registered liquidator can act as a restructuring practitioner. Check the same ASIC register.
• CPA, CA or IPA. Use the professional body’s directory. CPA Australia also has a tool to verify a member’s status and designation. Chartered Accountants Australia and New Zealand says its Find a CA list is not an exhaustive list of members, and asks you to contact it to verify membership.

What to ask an accountant before engaging them

Use this checklist in your first conversation:

• Are you registered with the TPB as a tax agent or BAS agent? What is your registration number?
• Which professional body are you a member of, and do you hold a public practice certificate?
• What exactly will you do for me, and by when?
• How do you charge, and what is included in the fee?
• Do you work with businesses of my size and in my industry?
• Will you deal with the ATO on my behalf?
• How do we end the arrangement if it doesn’t work out?

The TPB suggests discussing the details of the work to be done, when it needs to be done by, and the fees before you engage a tax practitioner. Ask for the scope and fees in writing.

Insolvency and restructuring help

If your business can’t pay its debts, talk to your accountant or a lawyer early. You may also need a registered liquidator. For eligible companies, small business restructuring is an option. ASIC says total liabilities must not exceed $1 million on the day the restructuring practitioner is appointed. The practitioner advises the company, helps it prepare a restructuring plan and acts as the company’s agent, without taking over day-to-day operations.

ARITA, the professional body for insolvency practitioners, warns that “untrustworthy advisers will not be ARITA Professional Members or registered liquidators”. See when borrowing is not the answer.

Important things to know

• A title isn’t a registration. Anyone can call themselves a business adviser or CFO. Check their professional membership and any TPB or ASIC registration.
• Only registered practitioners can charge for tax and BAS services. If someone who isn’t registered offers to prepare your tax return or BAS for a fee, don’t engage them.
• Registration and membership are separate. A CPA, CA or IPA member still needs TPB registration to charge for tax agent or BAS services.
• Directories may not list everyone. Use the official registers to confirm registration.
• Financial advice is regulated separately. Check the Moneysmart financial advisers register first.
• Get the scope and fees in writing before work starts.