Start by confirming the accountant is registered with the Tax Practitioners Board, because only a registered tax agent can legally charge a fee to prepare and lodge your tax return. Then test for industry experience, ask how fees are structured, and establish who will actually do the work. Using a registered agent also gives you extended lodgement dates and safe harbour penalty protection.
Anyone in Australia can call themselves an accountant. Not everyone can legally charge you to prepare your tax return, which is why knowing how to find a good accountant starts with a check most business owners never run.
That distinction is not academic. In December 2023 the Federal Court ordered a Perth-based unregistered preparer to pay $230,000 in penalties for 531 contraventions of the Tax Agent Services Act 2009, and granted a permanent injunction stopping her from providing tax agent services. Her clients were left with amended assessments and unpaid tax after the ATO found unsubstantiated deductions in the returns she had prepared for them.
That check takes about thirty seconds on a public register. What comes after it is a dozen questions most owners never think to ask. This article gives you both. Take it to your first meeting.
Sources: ABS Counts of Australian Businesses, released 16 December 2025; Tax Practitioners Board.
How do you find a good accountant for a small business?
Verify the accountant is registered with the Tax Practitioners Board and belongs to a professional body such as CPA Australia. Test whether they have worked with businesses like yours. Then agree the scope and fee in writing before you engage. These three steps filter out most poor engagements.
Those three steps sound obvious. In practice most owners skip straight to price, and price is the least useful thing to compare when two firms are quoting on different work.
Registration tells you the person is allowed to do the work and answerable if they do it badly. Industry experience tells you whether they will spot what actually costs you money. A written scope tells you what you are buying. Get those three right and the fee conversation becomes straightforward, which is how we structure our own small business accounting service.
What qualifications should an accountant have in Australia?
Two credentials matter. Registration with the Tax Practitioners Board is a legal requirement for anyone charging a fee to prepare or lodge your tax return. Membership of a professional accounting body such as CPA Australia signals assessed competence and ongoing professional development. Both are verifiable on public registers in under a minute.
The Tax Practitioners Board maintains a searchable public register of every registered tax agent and BAS agent in Australia. Search the individual or the firm. If they are not there, they cannot lawfully charge you for a tax agent service.
Registration is not just a badge. The TPB requires registered practitioners to hold professional indemnity insurance that compensates you for loss caused by an act, error or omission, to comply with the Code of Professional Conduct, and to account to you for any money they receive and hold on your behalf, including refunds. An unregistered preparer owes you none of that.
On the professional body side, CPA Australia states that its designation "comes with an assurance that CPA Australia has fully assessed and examined an accountant for competency and quality", and provides both a member verification tool and a public directory. ASIC's Moneysmart gives the same advice, adding that "only registered tax agents can prepare and lodge tax returns" and that you should check membership of a professional accounting body. We are a CPA firm and registered tax agent, and we would encourage you to run both checks on us as readily as on anyone else.
Why does industry experience matter more than you think?
Compliance work looks similar across industries, but the expensive decisions do not. A retailer needs someone fluent in stock and margin. A building business needs contractor classification and taxable payments reporting. A medical practice needs service entity structures. Generic accounting keeps you lodged on time and still misses the money.
A practical example. A Melbourne retailer was quoted by two firms at almost the same annual fee. One asked a series of questions about stock: how it was counted, when it was last counted, and how obsolete lines were treated. The other never raised it. That omission changes the closing stock figure, and closing stock flows straight through to taxable income.
What that question was worth
Put numbers on it. The stock ledger showed $340,000 on hand at 30 June. A proper count identified $45,000 of obsolete and damaged lines that would never sell at anything near cost. Under the trading stock rules a business can elect to value each item at cost, market selling value, or replacement value, so those lines did not have to stay on the books at cost.
| Step | Amount |
|---|---|
| Closing stock per the ledger | $340,000 |
| Obsolete lines revalued | $45,000 |
| Revised closing stock | $295,000 |
| Increase in cost of goods sold | $45,000 |
| Tax effect at the 25% base rate entity rate | $11,250 |
Lower closing stock increases cost of goods sold, which reduces taxable income by the same $45,000. At the 25% base rate entity company tax rate, that is $11,250. The firm that never asked about stock was not the cheaper option. On this one item it was $11,250 more expensive, and the quotes were the same.
The pattern repeats across sectors. In construction, whether a worker is a contractor or an employee determines superannuation, payroll tax and reporting obligations, and getting it wrong is expensive. We have written separately on how the ATO applies the contractor tests, and it is a core issue for the builders and tradies we act for. In online retail, imported stock, platform fees and GST treatment drive the margin, which is why e-commerce clients need someone who has seen those transactions before.
Business Victoria says much the same, recommending you verify qualifications and professional membership and confirm the accountant has experience with clients similar to you.
The 12 questions to ask before you engage an accountant
These are the questions we would ask if we were sitting on your side of the table. Each one has an answer that should reassure you and an answer that should not.
Credentials
| Ask | A good answer sounds like |
|---|---|
| 1. Are you registered with the Tax Practitioners Board, and what is your registration number? | The number, offered without hesitation. Hesitation, or "the firm is registered" with no number, is a reason to check the register yourself. |
| 2. Which professional body are you a member of, and do you hold a public practice certificate? | A named body and a clear yes. A public practice certificate is what permits a member to offer services to the public. |
| 3. Do you hold professional indemnity insurance? | Yes, as a matter of course. It is a TPB requirement, so an unclear answer is telling. |
Scope and fees
| Ask | A good answer sounds like |
|---|---|
| 4. What is included in the annual fee, and what is charged separately? | A written list. Financial statements, the entity return, director returns, BAS and ASIC work should each be named as in or out. |
| 5. Is the fee fixed or hourly, and what triggers an extra invoice? | A specific trigger, such as an ATO review or a new entity. "We will let you know" is how surprise invoices begin. |
| 6. Are my quarterly BAS lodgements included? | A direct yes or no with a price. This is the single most common gap between two quotes that look identical. |
People and service
| Ask | A good answer sounds like |
|---|---|
| 7. Who will actually do my work, and who reviews it? | Named people and a named reviewer. Work prepared by a junior is fine; work never reviewed by a senior is not. |
| 8. How quickly do you respond, and is a phone call billable? | A stated turnaround. If every call is metered, you will stop calling, which is when problems compound. |
| 9. What software do you work in, and will you work in my file? | A firm that works in your live ledger can answer questions during the year, not just after it. |
Industry fit and value
| Ask | A good answer sounds like |
|---|---|
| 10. Which of your clients look like my business? | Specific sector detail, without naming confidential clients. Vagueness here usually means no relevant experience. |
| 11. What will you tell me during the year, not just after it? | A described rhythm: quarterly reporting, a pre-June tax planning conversation, updated projections. |
| 12. When did you last review a client's structure, and what changed? | A real example. An accountant who never revisits structure will leave you in the one you set up on day one. |
Questions 4 to 6 are also where you will find the difference between two quotes. If one includes bookkeeping and payroll and the other does not, the cheaper number is not the cheaper engagement.
What does a good accountant do beyond the tax return?
Beyond compliance, a good accountant reviews your structure as the business changes, plans tax before 30 June rather than reporting it afterwards, keeps rolling cash flow projections, and flags legislative changes that affect you. Registered tax agents also give clients access to extended lodgement dates and safe harbour penalty protection.
The clearest way to explain the difference is with a client we act for. Watches of Mayfair is a luxury e-commerce business, and we work alongside their internal finance team rather than replacing it. We prepare the BAS, IAS, FBT and income tax returns, which is the compliance layer any registered agent would provide.
The part that changes decisions is the quarterly meeting. We review actual financial performance, update the projections, work through the trends the numbers are showing, and talk about what has moved in tax that affects them. That conversation is also where opportunities and expansion plans get tested against the numbers before anyone commits to them. None of that appears on a lodgement receipt, and it is the reason the relationship exists. This is the work our forecasting and business advisory and tax planning services are built to do.
There are two benefits of using a registered agent that are worth knowing because they are concrete and rarely explained. The first is the lodgement program. Under the ATO's registered agent lodgment program, a 30 June balancing company that is a tax agent client and has no outstanding prior year returns generally has until 15 May 2027 to lodge its 2025-26 return, where entities with 2024-25 total income above $2 million are due 31 March 2027. Our post on key ATO due dates sets out the full calendar.
The second is safe harbour. Where you engage a registered tax agent and give them all the relevant information by the deadlines they set, you are generally not liable for a failure to lodge on time penalty, or for a false or misleading statement penalty arising from the agent's failure to take reasonable care. It does not extend to recklessness or intentional disregard of the law, and it does not apply if you did not provide the information. It is real protection, and it is only available through a registered agent.
Considering a change of accountant?
We are happy to talk through what your business needs and what it should reasonably cost, whether or not you end up engaging us.
Contact usWhat are the warning signs?
Treat these as disqualifying: not appearing on the Tax Practitioners Board register, asking for your myGov login, charging a percentage of your refund, promising a refund figure before seeing your records, or refusing to put the scope and fee in writing. Each one signals a practice operating outside professional obligations.
The myGov point deserves emphasis because it is the most common. The TPB warns directly that sharing your myGov credentials puts your personal and financial affairs at risk, and notes that unregistered preparers frequently lodge through myTax using client logins, a channel registered practitioners do not use. A registered agent lodges through the ATO's practitioner systems and never needs your myGov password.
Refund-percentage fees are the other pattern worth naming. An accountant paid a share of your refund has an interest in the refund being large, which is not the same as it being correct. You carry the liability for what is in your return, not them.
How do you change accountants?
It is more straightforward than most owners expect, and you do not need to wait for the end of a financial year.
- 1. Engage the new firm and sign their letter of engagement.
- 2. The new firm writes to your existing accountant requesting professional clearance and your records. You do not have to make that call yourself.
- 3. Records and prior year workpapers transfer. Outstanding fees owed to the previous firm can delay this, so settle them.
- 4. You authorise the new agent through the ATO's agent nomination process, and the software file is transferred or shared.
Mid-year changes are common and rarely cause problems, provided outstanding compliance is identified before the handover rather than after it.
Key takeaways
- Check the Tax Practitioners Board register before anything else. Only a registered tax agent can charge you to prepare and lodge a return.
- Ask which of their clients look like your business, and listen for specifics rather than reassurance.
- Get the scope in writing before you compare fees. Most quote differences are scope differences.
- Ask what you will hear during the year, not just after it. That answer separates compliance from advice.
- Never share your myGov login with anyone, including an accountant.
We meet clients at our Chadstone head office and at our Moorabbin office in the Morris Moor precinct.
Book an initial meeting
Bring the twelve questions. We will answer all of them, and tell you plainly if your business would be better served elsewhere.
Book a meetingDisclaimer: The information provided in this article is general in nature and does not constitute specific tax, legal, or financial advice. We recommend seeking professional advice tailored to your individual circumstances. 42 Advisory is a CPA firm and Registered Tax Agent.
Frequently asked questions
How do you know if an accountant is good?
A good accountant is registered with the Tax Practitioners Board, belongs to a professional body such as CPA Australia, gives you scope and fees in writing, has worked with businesses in your industry, and tells you things during the financial year rather than only reporting after it. Vague answers to direct questions about fees, people or industry experience are the clearest warning sign.
What type of accountant is best for a small business?
For most small businesses, a registered tax agent in a small or mid-sized public practice who works in your accounting software and has clients in your sector. What matters more than firm size is whether they handle your compliance and advisory work together, so structure, tax planning and cash flow are considered alongside the return rather than separately.
Do I really need an accountant for my small business?
Legally, no. You can prepare and lodge your own returns. In practice, once you operate through a company or trust, employ staff, or hold stock, the compliance obligations and the tax consequences of structural decisions usually justify the cost. Engaging a registered tax agent also gives you extended lodgement dates and safe harbour penalty protection that self-preparers do not receive.
How do I check if an accountant is registered in Australia?
Search the Tax Practitioners Board public register at tpb.gov.au by individual name, business name or registration number. The register shows registration type, status and any conditions. Separately, professional body membership can be confirmed through that body's own verification tool, such as CPA Australia's member verification service.
Can I change accountants in the middle of a financial year?
Yes. There is no requirement to wait for 30 June. The new firm requests professional clearance and your records from the outgoing accountant, you nominate the new agent through the ATO, and the accounting file is transferred. Settling any outstanding fees with the previous firm avoids the most common delay.
Framework Will Help You Grow Your Business With Little Effort.
Sergiy Kucherenko
Sergiy Kucherenko is the founder and director of 42 Advisory and a member of CPA Australia. His professional career has been built in public practice and business advisory — working alongside business owners to simplify financial complexity, strengthen structure, and support growth at every stage. Originally trained as an engineer with a background in computer science, Sergiy brings an analytical and systems-oriented mindset to accounting and advisory — one that translates directly into the practice's emphasis on automation, process design, and technology-driven client solutions. It is the foundation behind 42 Advisory's cloud-first operating model and its ability to serve technically complex businesses with precision. Throughout his advisory career, Sergiy has served clients across medical technology, telecommunications, SaaS and technology businesses, construction and trades, and healthcare — including general practice and dental groups. That depth of sector exposure informs advice that is commercially grounded, not generic — calibrated to the specific operating realities of each industry. He has supported businesses at every stage of the growth cycle — from incorporation and early-stage structuring through to acquisition, restructure, and exit — with particular depth in service trust structures for medical practices, SaaS revenue recognition, and construction industry cash-flow management.