The financial sector contains many roles – the most common of which are accountants and tax agents. Although these terms are often used interchangeably, they are not the same. So what is the difference between tax accountants and tax agents? Here we provide you with a brief summary of the similarities and differences between these two professional services and their key roles in business.
There are many different areas of expertise in the accounting profession and accountants can have more than one qualification or speciality depending on the work environment. Areas of expertise can range from in-house company accountancy, management accountancy, financial planning accountancy, cost accountancy, and tax accountancy.
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Important Duties Performed by Tax Accountants
Tax Accountants are usually employed by small business owners to assist with the preparation of financial statements that reflect business performance. Whereas small companies often outsource their accounting needs larger companies usually hire an in-house accountant to collect, record, analyse, and visualise the financial operations of their business operations. Not only do they interpret financial information, but they can also assist management in the greater decision-making processes within their business. Some of the specific tasks performed by tax accountants are:
- Examining the income and expenditure of the business or organisation
- Create and maintain budgets
- Prepare financial statements
- Establish bank accounts, funds, and trusts
- Manage cash flow
- Provide advice on accounting systems, structures, and business plans
- Conduct financial investigations, undertake audits and manage insolvency
- Prepare reports that reflect regulatory requirements and business compliance
- Create accounting policies in alignment with regulatory requirements in consultation with senior management
Tax Agents, also known as Public Accountants specialise in tax accounting. In addition to all the duties of an accountant, they have the authority to represent taxpayers and act on behalf of businesses and organisations in dealing with tax authorities like the ATO. They are specialist accountants who have further qualifications that specifically qualify them to deal with business tax law and tax compliance. Tax agents are professionals registered with the TPB (Tax Practitioners Board) and licensed to provide the public with professional tax services. Tax agents can assist businesses in all matters relating to tax including advice on any issues related to tax returns and payments.
Important Duties Performed by a Tax Agent
Some of the key roles and responsibilities performed by registered tax agents include the following:
- Ascertaining and advising senior stakeholders in a business or organisation regarding the liabilities, entitlements, and obligations of entities under Australian Taxation Law.
- Representing clients in dealings with the Commissioner of Taxation in relation to taxation law.
- Formulate statements and assist in tax obligation calculations that reflect the liabilities of a business.
- Helps save money by effectively and legally reducing tax liabilities.
Whether you require the services of a tax accountant or a tax agent, Perth Mobile Tax can help you with smart accounting solutions to ensure the future financial stability of your business. If you need more than just simple annual tax compliance, our expert team of skilled and experienced accountants is highly educated in current tax law and policies that enable them to help you avoid tax obstacles and plan for the future. Contact us today to chat with one of our experts.