Not all accountants are created equal. Some will genuinely help your business grow, while others might just tick boxes without offering any real value. The difference can come down to a few key traits and warning signs. If you’re hiring an accountant, either for yourself or your business, it’s worth taking the time to get it right.
Here’s what actually matters when choosing an accountant, and what should immediately raise a red flag.
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What a Good Accountant Should Offer
There are certain skills and characteristics that separate the good professionals from the truly great accountants in Penrith, NSW. You want someone who doesn’t just crunch numbers, but actually helps make sense of them. Here are some of the things you should look for:
1. Financial Knowledge That Goes Beyond Basics
A good accountant should absolutely know how to prepare a tax return. But if that’s all they offer, it’s not enough. They should be able to explain how different financial decisions affect your bottom line, give insights into your business structure, and help you understand the risks and rewards in plain terms.
They don’t need to act like your business partner, but they should make things clearer, not more confusing.
2. Clear, Honest Communication
Finance is full of technical language. You don’t want someone who hides behind jargon. Look for someone who explains things clearly, answers your questions directly, and doesn’t make you feel stupid for asking.
If you’re left unsure after a conversation with them, that’s a problem. Clear communication builds trust, and trust is essential.
3. Proactive Support
A strong accountant doesn’t just work at tax time. They help you plan ahead. That might mean flagging opportunities to save, helping you prepare for cash flow shifts, or showing you how to improve your processes.
If an accountant only speaks up when you reach out, it could be a sign they’re not invested in your long-term goals.
4. Experience That Matches Your Needs
Not every accountant has the same focus. Some work mainly with sole traders, others specialise in small businesses, and some deal with complex investment portfolios or international tax. Make sure they’ve worked with others in a similar situation to yours.
Experience in your industry can also be a big plus, especially if there are specific rules or reporting standards to deal with.
Signs That Should Make You Walk Away
Now for the other side of the coin. Even if someone has an impressive CV, there are warning signs that shouldn’t be ignored.
1. Vague or Overly Complicated Answers
If someone can’t clearly explain what they’re doing with your money, or constantly dodges questions, that’s a major red flag. You don’t need a lecture in accounting, but you do need to understand where things stand.
Avoid anyone who makes the process feel unnecessarily complicated. That’s often a cover for not really knowing what they’re doing.
2. Promises That Sound Too Good to Be True
Some accountants will talk about “guaranteed” savings or strategies that seem a bit too clever. That’s where you need to be careful. Creative accounting can quickly cross the line into illegal territory.
If they’re promising tax results that seem better than everyone else’s, press harder. If they can’t back it up with a solid explanation, don’t risk it.
3. Lack of Transparency About Fees
You shouldn’t have to chase down quotes or feel confused about what you’re being charged for. Good accountants are upfront about their pricing, and they’ll be clear about any extra costs.
If you’re constantly being hit with surprise invoices, or their fees don’t seem to match the work being done, it’s time to reconsider the relationship.
4. Poor Organisation or Missed Deadlines
This is non-negotiable. If your accountant is missing due dates, filing things late, or asking for the same documents multiple times, it’s a sign of deeper issues.
Late submissions can lead to fines or bigger tax bills. If they can’t manage their own workflow, how can they be trusted with yours?
Key Questions to Ask Before Hiring
Here are some helpful questions that can give you clarity during the hiring process:
What types of clients do you usually work with? – You want to hear that they’re experienced in situations similar to yours.
How do you usually communicate? – This helps set expectations. If they only work via email and you prefer phone calls, that could become a frustration.
Can you help with tax planning as well as preparation? – A good accountant will help you plan, not just report.
Do you offer fixed pricing or hourly rates? – Understanding their billing model helps avoid confusion later.
What happens if I get audited? – Even if you don’t expect it, it’s good to know whether they offer support in that situation.
Who will I actually be dealing with? – Sometimes you speak to one person but end up working with another. Be clear on who’s handling your finances.
The Right Fit Makes a Big Difference
Hiring an accountant isn’t just about compliance. It’s about getting the right support to grow, stay on top of obligations, and feel confident in your financial decisions. The right person will do more than balance your books. They’ll help you see the big picture and make smarter choices.
Don’t rush the decision. Ask the tough questions, watch for the signs, and trust your instincts. When you find the right match, it takes a huge weight off your shoulders.