Sorting Out Your Accounts

Factors To Consider When Choosing An Accounting Service

by Lydia Washington

Whether you are a business or an individual, there is a point when you will need an accounting service to handle your financial affairs. The task of finding a reliable accounting service can be daunting for a newbie. Here are some tips on choosing the right accounting service for your specific needs.


The first thing to do when looking for an accounting service is to review the qualifications of their accountants. Many accountants either have a finance-related bachelor's degree and a postgraduate degree. Additionally, you should choose an accounting service whose accountants belong to reputable accounting bodies. Examples of accounting bodies in Australia are the Institute of Chartered Accountants in Australia (ICA) and Australian Certified Practicing Accountants (CPA).

To be a member of these bodies, an accountant should either have a postgraduate or undergraduate degree. To gain membership, one should also undertake a course to prove their prowess. However, the certification process varies for each of these bodies. If you hire a commercial accounting service whose staff is in any of these bodies, you are guaranteed that in case of any problem, you can take your complaint to that body.

Tax Planning

You should hire an accounting service that will help you with tax planning. If you are an employee, look for an accounting service that will help you claim tax deductions and ensure your tax return is accurate. This mainly applies to employees with several sources of income and different investments.

If you run your own business or are a freelancer, look for a commercial accounting service that can help you with business activity statements and Pay as You Go (PAYG) instalments. The accounting firm will advise you on what deductions to claim and contributions to make. Apart from tax planning, ensure you choose an accountant that can help you with the end-of-year reports, finance applications, cash flow analysis and succession planning.

Technical Know-How

The demand for high technical knowledge in the accounting field has risen as traditional tasks like entering data into a ledger have been replaced with in-depth analysis and reporting. The ideal accounting service should be updated with the latest technology. They should know their way around a computer and be conversant with accounting software.

With the numerous accounting software packages in the market, any person would be confused about which one to choose for their business. A commercial accountant should have knowledge about different accounting software packages. They should be able to advise you about the best software package for your business or individual interests.