Tax compliance is the minimum — a good accountant also advises on structure (sole trader vs company vs trust), reviews your business performance against benchmarks, and identifies legitimate deductions you're missing. If your accountant only contacts you at tax time, you're paying for compliance but missing out on the advisory value that could save you significantly more than the fee.
What it depends on
The full answer depends on your specific circumstances. Here’s what matters.
Your business complexity
If you're a straightforward PAYG employee with no investments, a tax return is probably sufficient. But if you're a sole trader or small business owner, there are structural decisions (operating as a company, setting up a family trust, superannuation contribution strategies) that can legally reduce your tax — but only if someone analyses your specific numbers and advises BEFORE the end of the financial year.
The difference between compliance and advisory
Compliance is backward-looking: recording what happened and reporting it to the ATO. Advisory is forward-looking: analysing your financial position and recommending actions to improve it. Most accounting fees cover compliance. Advisory is usually a separate engagement — and it's where the real value lies.
Industry benchmarks
The ATO publishes small business benchmarks by industry. A good accountant compares your key ratios (cost of goods sold, labour, rent) against these benchmarks — not to catch you out, but to identify where you're overspending or undercharging relative to similar businesses.
Timing
Tax planning works best 6–12 months before the end of the financial year — not in August when the return is due. Strategies like bringing forward deductions, deferring income, making super contributions, or writing off bad debts all require action BEFORE 30 June to be effective.
The last 10%
What a qualified professional can add
The answer above covers the general position. Here’s where professional judgement — applied to YOUR specific situation — makes the difference.
- Analysing whether your current business structure is still the most tax-effective for your income level and risk profile
- Identifying legitimate deductions specific to your industry that you may be missing — the ATO's own benchmarks show most small businesses underclaim
- Providing cashflow projections and tax estimates so you're not surprised by a large tax bill
- Coordinating with your financial planner, mortgage broker, or finance broker so your overall financial strategy is aligned — not siloed
Questions to ask before you engage one
If you decide to engage a professional, these questions help you evaluate whether they’re right for your situation.
Beyond my tax return, what advisory services do you offer — and what do they cost separately?
When did you last review whether my business structure is still appropriate for my current income level?
How do my key business ratios compare to the ATO's benchmarks for my industry?
Do you offer mid-year tax planning, or do we only speak at tax time?
If I wanted a second opinion on my tax position, would you support that?
Your next step
A quick test: when was the last time your accountant contacted you proactively — not in response to a deadline? If the answer is "never" or "I can't remember," it's worth exploring whether you're getting compliance-only service when you could benefit from advisory. Explore our Accounting domain for more context.
General Advice Warning
The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. It is provided by Global Mutual Funds Pty Ltd (ABN 20 090 555 436, AFSL 222640) and should not be relied upon as a substitute for professional advice. Consider whether the information is appropriate before acting on it. Read our Financial Services Guide.