How To Find A Great Tax Agent (And Save on Tax!)

Is your tax agent costing you thousands in Excess Taxes?

Tired of paying more tax than you should? Your tax agent might be the reason why.

Tax agents can miss tax deductions, concessions, and incentives—which could lead to you paying thousands in excess taxes without you even knowing it.

Taxes are often the death of small businesses.

You’ve got income tax, company tax, GST, payroll tax, super, stamp duty—the list goes on.

It’s hard for businesses to thrive in a high-tax environment.

You need a tax agent who can work taxes in your favour. Someone who can create a tax-effective setup to run your business. Someone who knows your industry.

So, if you feel like your tax agent is holding you back, charging exhorbitant fees, and not answering your emails fast enough? Then it’s time to find a new one.

I’ll show you what to look out for, red flags, and how to find a winning tax agent to help grow your business.

How to Find the Right Tax Agent for Your Business

With tax law constantly evolving and increasing, you need a tax expert on your side to make sure your business stays compliant. You want someone who can help you minimise unnecessary taxes.

Not all tax agents are created equal.

In fact, some are fraudulent, some are terrible, and some will miss important deductions, resulting in more tax paid.

Nobody wants that.

The good news is there are amazing tax agents out there who are highly proactive, knowledgeable, and respond to your emails straightaway. They use Xero and have cloud accounting tricks up their sleeve.

These tax agents look at your business holistically, not just from a tax perspective. They might be experts in financial reporting or virtual CFO. They can help with cash flow projections and staffing issues.

The best tax agents become your trusted advisor for everything business-related.

So, how do you find the right tax agent for your business? By finding someone who is highly qualified, passionate about taxes, and experienced in your industry.

What is a Tax Agent?

A tax agent is a highly qualified and registered tax professional who specialises in a wide range of tax services, including income tax, GST, tax planning, superannuation, and other financial services like cash flow, forecasts, and budgets.

Unlike BAS agents, tax agents offer a full suite of tax compliance and advisory services for individuals, small businesses, and companies.

Tax agents must be registered with the Tax Practitioners Board (TPB), and have advanced qualifications and experience in tax law, accounting, and financial management.

A great tax agent will be equipped to handle complex tax matters, audits, strategic planning and asset protection.

Key Services Provided by a Tax Agent

A tax agent can assist with:

• Income Tax Returns: Preparing and lodging returns for both businesses and individuals.
• Tax Planning and Structuring: Offering strategies to minimise tax through careful planning and structuring.
• Capital Gains Tax (CGT): Advising on CGT requirements, exemptions, and strategies for asset protection.
• BAS and GST Compliance: While BAS agents also focus on this, tax agents can handle BAS and GST requirements.
• Audit and Dispute Management: Representing you in audits and resolving disputes with the Australian Taxation Office (ATO).

A good tax agent provides more than tax and compliance support—they act as a business partner, helping you cut costs, reduce taxes, and minimise financial risks.

How A Tax Agent Can Help Your Business

While BAS agents are invaluable for day-to-day GST and payroll compliance, a tax agent’s expertise is broader and more strategic.

A tax agent can benefit your business in the following ways:

1. Holistic Tax Strategy

• Tax agents handle more than BAS and GST; they look at your overall tax situation and long-term financial health. They can provide insights into how to reduce your tax liabilities across different areas of your business, not just GST.

2. Compliance and Minimised Risk

• With the ATO consistently updating compliance requirements, a tax agent ensures your business adheres to all regulations, avoiding costly penalties and interest. They’ll keep your records accurate, up-to-date, and ready for audit.

3. Financial Efficiency

• A tax agent with expertise in your industry can suggest deductions, structures, and strategies specific to your business. Their guidance can optimise your tax positioning, improve cash flow, and boost profitability.

4. Asset Protection

• A tax agent can assist with asset protection strategies if you’re a high-income earner. They can help with structuring your business for maximum protection, whether you’re operating through a company, holding company, partnership, or trust structure.

What’s the Difference Between a BAS Agent and a Tax Agent?

Both BAS agents and tax agents are essential for financial compliance, but their roles and qualifications differ significantly. Here’s a quick comparison:

1. Scope of Services

• BAS Agents: BAS agents focus on GST and BAS-related tasks. They focus on regular compliance duties, such as payroll, PAYG withholding, superannuation, and BAS preparation.
• Tax Agents: Tax agents go beyond BAS services, tackling complex tax issues like income tax returns, tax planning, CGT, fringe benefits tax, and audit support. They review your business’s tax needs, offering high-level guidance and structuring advice.

2. Qualifications and Registration

• BAS Agents: Registered with the TPB and required to complete CPE specific to BAS services. They typically hold a bookkeeping or basic accounting certification.
• Tax Agents: Registered with the TPB but require advanced qualifications, often a degree in accounting or finance. They must demonstrate a thorough understanding of tax law, and usually have extensive experience working with business clients.

3. Pricing

• BAS Agents: Often charge hourly rates of $60-100 or retainers of $400-800/month. They do routine bookkeeping and compliance work, which makes them cost-effective for small to medium-sized businesses focused on day-to-day operations.
• Tax Agents: Due to the complexity of their services, tax agents charge higher rates, usually $200-450/hour, or project rates for tasks like tax returns, audits, or structuring advice, ranging from $3,000-6,000+.

4. Which Do You Need?

• BAS Agent: If you’re a small business focused on regular GST and BAS compliance, a BAS agent may be best. They can look after your payroll, super, and bookkeeping needs.
• Tax Agent: If you want long-term tax planning, strategic structuring, or advanced tax advice, a tax agent is the better choice. For complex tax scenarios, their expertise can result in significant tax savings (if you hire the right one).

How to Find the Best Tax Agent for Your Business

The right tax agent can make your life a lot easier. They provide valuable insights, keep you compliant with the ATO, and help you avoid tax pitfalls.

1. Verify Their Registration and Qualifications

• Registered with the TPB: Make sure any tax agent you consider is registered with the TPB (so you know they’re qualified, experienced, and insured in case anything goes wrong).
• Qualifications and Experience: Look for a tax agent with a degree in accounting or tax law, and substantial experience with business clients in your industry. Tax agents with additional certifications (CPA or CA) are even better positioned to provide advanced tax advice.

2. Look for Industry-Specific Experience

• Specialised Knowledge: A tax agent with experience in your industry will know which deductions, structures, and regulations apply. For instance, real estate, healthcare, and e-commerce each have unique tax challenges.
• Ask for References: Getting a reference from businesses in your industry can give you confidence in their ability to handle your specific needs.

3. Do They Use Software And Technology?

• Use of Cloud-Based Tools: Modern tax agents should be comfortable with cloud-based software like Xero, MYOB, or QuickBooks. If you’re in ecommerce, they should use A2X. If you need payroll, make sure they know about Employment Hero or CloudPayroll.
• Automation Expertise: Ask if they use automation for reporting, tracking, and filing, which can enhance efficiency and reduce manual errors. A tech-savvy tax agent can integrate your accounting software with payroll, inventory, and even CRM systems for a seamless experience.

4. Evaluate Their Pricing Structure

• Upfront Fees and Transparency: Tax agents should be clear about their rates—whether hourly, project-based, or on retainer. Discuss fees for specific tasks (tax returns, audits, or planning) to ensure there are no surprise costs.
• Flexible Options: Many tax agents offer fixed monthly for specific services, which can help you manage costs. If possible, get a detailed proposal outlining all charges upfront.

5. Personalised Advice

• Tailored Tax Strategy: Look for a tax agent who offers specific advice for your business’s goals, not just standard tax advice. They should suggest strategies to improve cash flow, reduce tax, and optimise your business structure.
• Ongoing Support: An excellent tax agent will proactively keep you updated on tax law changes that affect your business and will notify you of upcoming deadlines. Their advice should go beyond compliance, offering valuable financial insights and ways to save.

6. Compliance Background

• Accuracy and Diligence: Choose a tax agent with a reputation for precision and attention to detail. The smallest error can lead to penalties or compliance issues with the ATO.
• Deadline Reliability: A tax agent who meets all ATO deadlines and handles lodgements on time shows professionalism and reliability—and keeps your business compliant.

7. Compatibility and Trust

• Aligned Values: Your tax agent should reflect your values of honesty, integrity, and accountability. Trustworthiness is crucial when someone is handling your finances.
• Trust Your Gut: If you feel uncomfortable or sense any red flags in your initial meetings, keep searching. A good tax agent should be someone you feel confident working with for the long haul.

The Risks of Hiring the Wrong Tax Agent

The wrong tax agent can negatively impact your business (and cost you thousands of dollars).

Whether it’s missed deductions, ATO penalties, cash flow problems, lack of business growth, or fraud — the wrong tax agent can cost your business in excess taxes, expenses, and lost opportunities.

1. Missed Tax Deductions

• Overpaying on Taxes: A tax agent who isn’t reading about the latest tax laws or doesn’t understand the specific needs of your industry can easily overlook deductions and incentives. These missed opportunities add up fast, potentially costing your business thousands of dollars each year.
• Poor Tax Strategy: The wrong tax agent may not have the strategic insight to help you optimise your business structure for tax efficiency, meaning you might be paying more than you need to. Effective tax agents find ways to minimise your tax bill within legal boundaries, but a less experienced agent might not go beyond the basics (or get too caught up in technicalities).

2. ATO Penalties & Audits

• Errors in Compliance: Tax regulations are complex and constantly updated. A tax agent who isn’t always updating their knowledge can make mistakes on filings, opening your business up to scrutiny, audits, and potential penalties from the Australian Tax Office (ATO).
• Costly Penalties: Incorrect lodgements or missed deadlines can quickly lead to interest charges and penalties, affecting your profitability and standing with the ATO.

3. Cash Flow Problems

• Inaccurate Forecasting: The wrong tax agent may lack the foresight to help you manage your cash flow effectively, leaving you unprepared for major tax payments. This can lead to cash shortages that hurt day-to-day operations.
• No Tax Payment Planning: A great tax agent will help you set aside funds for taxes throughout the year. Without this proactive planning, you might face sudden tax liabilities that take you by surprise.

4. Lack of Business Growth Support

• Missed Opportunities for Expansion: Tax agents aren’t just there to file taxes—they can be valuable partners in your business growth. Some agents lack the skills to advise on tax strategies for expansion, mergers, or new investments. Without their guidance, you could be missing out on strategic moves that could save money and promote growth.

5. Added Stress and Lost Time

• Constant Follow-Ups: An unreliable tax agent who is slow to respond or prone to errors will have you constantly chasing them down, creating unnecessary stress and taking valuable time away from running your business.
• Unpredictable Fees: Agents who aren’t transparent about their pricing can leave you with unexpected bills and additional costs. In contrast, a skilled and upfront tax agent offers clear pricing, so you know exactly what to expect and can budget effectively.

6. Potential for Fraud

• Insufficient Oversight: Entrusting the wrong person with sensitive financial data can put your business at risk of fraud or mismanagement. Make sure you find someone trustworthy, and review their work, checking what they’ve done.

Want To Know More?

Thinking of hiring a tax agent but still have questions? Want to outsource your business finances to an expert team of accountants who can help your business grow? To find out more, book a free call with me here.

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