Start with what you can check: registration
If you want someone to prepare or lodge your tax returns, notices or statements, or to give you tax advice, the Tax Practitioners Board (TPB) says you should make sure they are registered with it. The TPB registers tax agents and BAS agents, which it refers to together as tax practitioners.
You can check this yourself on the TPB Register, which is searchable on the TPB website. To see whether a practitioner is registered, enter their legal or registration name, their ASIC registered business name or their registration number.
The type of registration matters. The TPB says registered BAS agents can only provide some of the services tax agents are registered to provide, so check that the registration type fits the work you need done.
Some practitioners display the TPB's registered tax practitioner symbol. The TPB says the symbol includes the practitioner's registration type and TPB registration number, and you can search the register using that number.
According to the TPB, the details shown for a practitioner on the register include:
- whether they are registered as a tax agent or a BAS agent
- their registration status, such as registered, suspended or terminated
- the registration expiry date
- any conditions on the registration, which mean the practitioner is only allowed to provide certain types of services
- sanctions the TPB has imposed that are on the public record
Ask about professional body membership
Ask which professional accounting body the accountant belongs to, such as Chartered Accountants Australia and New Zealand, CPA Australia or the Institute of Public Accountants. The TPB publishes a list of the professional associations it has accredited as recognised associations, and all three are on it.
You do not have to take membership on trust. Where a practitioner has given the TPB their professional association details, the register shows them. The TPB notes that this information is provided by the practitioner and encourages you to make your own enquiries to verify it, for example by contacting the association.
For Chartered Accountants, the Chartered Accountants ANZ website has a Find a Chartered Accountant search. It can find members who hold a Certificate of Public Practice and have opted in. Chartered Accountants ANZ says the search is not an exhaustive list of its members and asks you to contact it to verify whether a person is a member.
Check the fit: software, industry and the work you need
Ask what accounting software the accountant works in and if you would have to change. An accountant who works in the system you already use can start from your existing records. If you would need to move to another system, ask who does the move and how long it takes.
Ask what experience they have with businesses like yours. A law firm with a trust account, a medical practice and an online retailer keep different records and need different reports. Ask for a plain description of the work they do for businesses in your industry; specific answers tell you more than general assurances.
Then list the work you need. Some firms do all of it and some concentrate on part of it. Either can suit you, as long as you know which you are getting and who covers the rest. The usual items are:
- bookkeeping and bank reconciliations
- payroll and superannuation
- BAS preparation and lodgement
- the business tax return and financial statements
- management reports through the year
- advice on planning and decisions
Get the scope and the fees in writing
The TPB recommends discussing some points with a registered tax or BAS agent so you both know what is expected. They include the details of the work to be done and when it needs to be done by, and how much the work will cost or general information about the practitioner's fee structure.
The TPB also notes that many registered tax practitioners will ask you to sign a letter of engagement, which sets out both parties' obligations in relation to the work to be done. Read it before you sign and ask about anything that is unclear.
When you compare proposals, look at the scope as well as the figure, because two proposals can cover different work. Ask how the fee is worked out: a fixed fee for a defined scope, a regular monthly amount or time spent. Useful questions to ask:
- What is included in the fee, and what is charged separately?
- How and when will we be billed?
- What do you need from us, and by when?
- How will you tell us if the work is going to cost more than expected?
Know who you will deal with
Ask who will do the work and who you will speak to when you have a question. In some firms the person you meet first handles your file all year. In others the work is shared across a team and you have one contact. Either can work well, provided you know your contact's name, how to reach them and how quickly to expect a reply.
Ask how often you will hear from them without having to chase: after each BAS, monthly, quarterly or only at year end. If you want reports you can act on during the year, say so at the start, because that is a different service from preparing a tax return.
Where OziDesktop fits
OziDesktop is based in Camberwell, Melbourne, and works with businesses and professional practices across Australia. We are a registered tax agent with the Tax Practitioners Board and a Xero Gold Partner, and our founder, Maple Ip, is a Chartered Accountant (Chartered Accountants ANZ). Ask us for our registration details and check them the same way you would for any accountant.
We keep books in Xero, MYOB and QuickBooks, so a business already using one of them does not need to change software to work with us. The bookkeeping page describes the day-to-day work and the accounting and tax page covers BAS and tax returns. If you want one team for both, see the growing businesses page.
If you are comparing accountants now, a free discovery call is a good place to ask the questions in this guide. Tell us about your business and how your books are kept today. We then review your records and agree a scope with you before any work starts.