You might have heard about tax agents and accountants. Most often, these two terms are used interchangeably when discussing financial matters and ensuring you are meeting your tax duties. However, the duties and tasks of these two professionals differ. Business owners and individual taxpayers must understand the difference between these two professionals. Both of these professionals are important to ensuring that you meet your tax requirements and maintain accurate financial records. In this blog post, we’ll discuss the difference between a tax agent and an accountant.

What is an accountant responsible for?

A wide range of financial services, including bookkeeping, tax preparation, financial planning, and more, can be completed by accountants in Melbourne, who are professionally trained experts. If you are looking for more detailed financial support, their expertise will help you.

When should you see an accountant?

If you’re spending too much time on daily business finances—like payments, budgeting, financial reporting, and expenses—rather than focusing on growing your business, it may be wise to hire an accountant to handle those accounting tasks.

What is a tax agent responsible for?

Tax preparation and lodgment are their primary areas of expertise. Tax agents are licenced specialists in this niche. They can help you stay on top of tax rules and regulations because they work with small enterprises and individuals. Make sure to choose a tax agent who is registered with the Tax Practitioners Board.

When should you get a tax agent?

It can be helpful to use a tax agent when filing your tax returns for the first time to ensure everything is done correctly. Additionally, a tax agent can help you maximise your allowable deductions. There may be deductions you overlook while preparing your return, but a tax agent is likely to catch those.

Difference between a tax agent and an accountant

Accountants and tax agents serve different responsibilities. Many individuals get confused when choosing between an accountant and a tax agent. Accountants manage more complex tasks such as providing strategic financial advice and preparing financial statements. Tax agents specialise in dealing with tax-related matters, including providing tax guidance and lodging tax returns. The following are some differences between a tax agent and an accountant:

  • Area of expertise

Tax agents can prepare and lodge tax returns for both individuals and companies, advising clients on their tax matters and compliance. On the other hand, in addition to tax compliance, accountants can also help with financial reporting, financial analysis, and budgeting. Moreover, if you want an accountant near your area, you can search for ‘accountant for small business near me’.

  • Roles and responsibilities

Tax agents are responsible for both individuals and corporations in preparing and lodging their tax returns to the ATO. Because of their expertise in tax law, they may suggest clients on complex tax matters, including offsets and deductions. On the other hand, accountants are responsible for offering financial services. They can provide assistance with business models and help with financial planning, budgeting, and auditing for both individuals and companies. To help their clients in improving their financial performance, accountants also provide advisory services.

  • Specialisation

Tax agent focuses on a specific aspect of tax law, such as retirement savings or GST. Accountants focus on auditing, accounting management, and financial planning. Despite this, if you want someone to manage your business books, send invoices, and reconcile bank accounts, then you can seek help from a bookkeeper in Melbourne.

Understanding the differences between accountants and tax agents is crucial for making informed choices regarding your business’s financial requirements. Accountants provide strategic guidance and tax agents focus on the intricacies of tax regulations. Selecting the right professional for your business will help you effectively manage your financial operations, allowing you to focus on growth and success.

Conclusion

Whether you need the service of a tax accountant or a tax agent, Reliable Melbourne Accountants are here to help you with smart accounting services to ensure the financial stability of your business. You can get in touch with us to receive reliable accounting solutions for your company.