Running a business in Australia comes with many financial responsibilities, from managing taxes to planning long-term growth. One of the biggest questions entrepreneurs face is: “Should I hire an accountant or a financial planner?” The answer depends on your business needs, goals, and stage of growth. In this comprehensive guide, we’ll break down the differences for accountant vs financial planner who to hire for your business, responsibilities, credentials, real-world examples, and tips to help you make an informed decision.
What is an Accountant?
An accountant is a professional responsible for tracking, recording, and reporting financial transactions. Their role is primarily focused on historical data and ensuring that your business complies with Australian tax laws and accounting standards.
Core Functions of an Accountant in Australia
- Bookkeeping: Recording every financial transaction.
- Financial Statements: Preparing profit and loss statements, balance sheets, and cash flow statements.
- Tax Compliance: Calculating and filing Business Activity Statements (BAS), GST, corporate taxes, and payroll taxes.
- Audits and Compliance: Ensuring your business meets Australian Taxation Office (ATO) requirements.
- Budgeting and Cost Analysis: Helping optimise expenses and forecast cash flow.
Example:
Suppose your Sydney-based café earns $500,000 per year and spends $300,000 on salaries, rent, and other costs. An accountant will prepare your financial statements and calculate tax obligations according to Australian tax laws.
What is a Financial Planner?
A financial planner focuses on future financial strategy, helping businesses and individuals achieve long-term financial goals. They analyse your current financial situation and advise on investments, growth strategies, and risk management.
Core Functions of a Financial Planner
- Investment Planning: Advising on how to allocate profits into shares, superannuation, or property.
- Retirement Planning: Helping business owners plan personal retirement and succession strategies.
- Risk Management: Insurance, liability planning, and emergency funds.
- Growth Strategy: Identifying opportunities to expand the business or invest in new projects.
- Cash Flow and Profit Optimisation: Strategically planning how to reinvest profits.
Example:
Your café earns $500,000 per year with a net profit of $100,000. A financial planner may suggest reinvesting $50,000 into expanding to a second location, calculate expected ROI, and adjust your long-term growth plan.
Key Differences Between: Accountant vs Financial Planner Who to Hire for Your Business
| Aspect | Accountant | Financial Planner |
| Focus | Historical data | Future strategy |
| Core Role | Tax compliance, financial statements | Investment, growth, risk management |
| Certification | CPA, CA | CFP, FPA (Financial Planning Association of Australia) |
| Tax Advice | Yes | Limited or coordinates with accountant |
| Financial Strategy | Limited | Extensive |
| Reporting | Required by law | Advisory only |
| Typical Client Use | Businesses needing compliance | Business owners planning growth or personal wealth |
Tip: Think of accountants as the rearview mirror — they show you where you’ve been. Financial planners are the windshield — they show where you’re going.
When Should You Hire an Accountant?
Every business in Australia, from sole traders to large companies, benefits from hiring an accountant. Some scenarios include:
- Compliance with ATO: To avoid penalties on BAS, GST, or payroll taxes.
- Financial Statements: For banks or investors if you need funding.
- Payroll Management: Ensuring employees are paid correctly with tax obligations met.
- Tax Optimisation: Using deductions, offsets, and depreciation rules.
- Audits: Representing your business during ATO audits.
Example Calculation:
If your business revenue is $500,000 and your deductible expenses are $350,000:
- Taxable income = $500,000 – $350,000 = $150,000
- Corporate tax rate (2025–26) = 25% (for base rate entities)
- Tax payable = $150,000 × 25% = $37,500
An accountant ensures this is calculated correctly, minimising errors and penalties.
When Should You Hire a Financial Planner?
A financial planner is critical when you want to grow your business strategically or secure your long-term wealth. Scenarios include:
- Planning for business expansion or new investments.
- Succession planning for family-owned businesses.
- Optimising cash flow and profits for reinvestment.
- Managing personal wealth, superannuation, or retirement as a business owner.
- Assessing risk and insurance needs.
Example Calculation:
Your café has $100,000 net profit and you plan to invest in a new branch costing $60,000, expecting annual additional profit of $40,000:
- ROI = $40,000 ÷ $60,000 × 100 = 66.7%
- Payback period = $60,000 ÷ $40,000 = 1.5 years
A financial planner analyses this scenario, calculates ROI, and advises if the expansion aligns with your long-term goals.
Certification and Credentials in Australia
Accountants
- CPA (Certified Practising Accountant)
- CA (Chartered Accountant)
- Membership in CPA Australia or Chartered Accountants Australia and New Zealand (CA ANZ) is mandatory for certain services.
Financial Planners
- CFP (Certified Financial Planner)
- Membership in the Financial Planning Association of Australia (FPA)
- Must follow ASIC regulations and act in a fiduciary capacity, putting your interests first.
Tip: Always verify credentials and check whether the professional is registered with the relevant regulatory body in Australia.
Real-World Example: Using Both Professionals Together
Suppose you run a manufacturing business in Melbourne. Here’s how an accountant and financial planner can collaborate:
- Accountant Role:
- Prepares financial statements showing $450,000 profit before tax.
- Calculates corporate tax: $450,000 × 25% = $112,500
- Net profit after tax: $337,500
- Financial Planner Role:
- Plans to reinvest $150,000 in new equipment.
- Expected additional annual revenue: $100,000
- Additional expenses: $20,000
- Incremental profit = $80,000 → ROI = 80,000 ÷ 150,000 = 53.3%
- Payback period ≈ 1.88 years
- Collaboration Outcome:
- Accountant ensures tax deductions on new equipment are maximised.
- Planner ensures reinvestment aligns with long-term business goals.
- Business grows strategically, maintains compliance, and improves profitability.
Common Pitfalls When Hiring
For Accountants
- Choosing a general bookkeeper over a CPA/CA for complex businesses.
- Not verifying experience in your industry.
- Focusing only on compliance, ignoring strategic advice.
For Financial Planners
- Paying high fees without clear deliverables.
- Hiring advisors without fiduciary duty.
- Lack of coordination with your accountant, leading to conflicting advice.
Tips to Make Them Work Together
- Define Responsibilities: Accountants handle compliance and reporting; planners handle strategy and investments.
- Regular Meetings: Quarterly meetings with both can align past performance with future strategy.
- Shared Access: Financial statements prepared by accountants should feed into the planner’s projections.
- Scenario Planning: Planners propose growth scenarios, accountants assess cash flow and tax implications.
- KPIs and Reporting: Use metrics like net profit margin, ROI, and cash reserves to measure performance.
Also Check: The Pros and Cons of Hiring a Financial Planner
Final Recommendations
- Small businesses: Start with an accountant to ensure compliance. Hire a financial planner when you have profits to reinvest or personal wealth planning needs.
- Growing businesses: Use both to optimise compliance and strategic growth.
- Entrepreneurs: If your personal wealth is tied to business, a financial planner helps plan succession, superannuation, and risk management.
Key Takeaway:
Accountants and financial planners serve different but complementary roles. For Australian businesses, leveraging both professionals ensures compliance today and growth tomorrow.
