What’s the Difference Between Accountants and Tax Agents?

What’s the Difference Between Accountants and Tax Agents?

Accountants and Tax Agents

Accountants and Tax Agents both fulfil particular financial needs that are not the same. You must select one of them based on your financial needs. To ensure efficient personal and corporate financial management, each of them has a specific function to play.

To make your choice, you must first understand the critical differences between them in their fields of expertise. In this post, we’ll go through the differences between them in detail so that you may make a decision.


Between Accountants and Tax Agents

The recording of transactions in books of accounts is referred to as accounting. This procedure will assist you in determining the proper profit or loss and the position of assets and liabilities on a specific day and at a particular time.

Businesses generally hire accountants to help them prepare financial statements that represent the company’s success. They are in charge of gathering, recording, analyzing, and visualizing a company’s financial operations.

Moreover, the accountant may have additional or fewer tasks depending on the size of the company. For example, Smaller businesses often outsource an accountant; larger enterprises, on the other hand, may hire a financial consultant or interpreter.

Accountants look into the future.

Your financial business strategist is your accountant. It is their job to assist you in obtaining the best possible return so that you pay the least amount of tax possible.

Accountants will evaluate historical data, but they will do so to help your company and its finances move forward. They’ll assist you in plugging any money leaks in your business.

They’ll suggest software that provides reports that track targets, profits, and losses automatically.

Specific tasks and duties performed by accountants.

  • Preparation of general-purpose financial.
  • Reports to help with your reporting requirements.
  • Get your financial information ready.
  • Data verification and analysis.
  • Revenue and expenses.
  • Providing data for projections, business.
  • Trends and growth opportunities.
  • Advice and planning on taxes.
  • Advice on financial management.
  • Business strategies, structures, and accounting.
  • Systems consultation.
  • Keeping track of cash flow.

Key Skills as an Accountant

  • Critical thinking
  • Mathematics
  • Reading and comprehension
  • Communication
  • Computer knowledge
  • Interpersonal skills

Tax Agents

Between Accountants and Tax Agents

Tax agent services relate to working out or advising about clients’ liabilities, obligations, or entitlements under a taxation law or representing entities in their dealings with the Commissioner of Taxation.

Tax accounting focuses on income, qualifying deductions, investment gains or losses, and other transactions that affect the individual’s tax burden. At the same time, an individual can use a tax agent. This limits the amount of information that is necessary for an individual to manage an annual tax return.

Meanwhile, a tax agent would be responsible for tracking any funds entering and exiting the person’s hands, regardless of their intended use, including personal expenses with no tax consequences.

The tax agent lives in the past

They work to verify that your income tax returns are compatible with ATO rules by looking at your previous returns. Most clients are recommended to them because they are well-versed in tax law.

Specific tasks and duties performed by Tax agent

  • Advisory on taxes 
  • Preparation of income tax returns for all income tax types
  • Managing your taxation obligations
  • Budgets must be created and maintained.
  • Financial statements should be prepared
  • Getting ready for audits by preparing business income
  • Tax forms and reports.
  • Advice on accounting systems, structures, and business planning is available.
  • Identifying places where you can save money on taxes
  • Keep track of tax trends and changes in the sector

Key Skills as a tax Agents

  • Critical thinking
  • Business Skill
  • Mathematics
  • Organization
  • Time management
  • Personable Skills
  • Interpersonal skills

To the untrained eye, both tax agent and accounting can appear to be the same occupation. Both tax agents and accountants use financial data. Essential accounting expertise is required for both jobs.

Suppose you’re the founder of a new business. In that situation, accountants are advised since they can assist you with practically every financial component of your business and tax planning and compliance guidance, which is typically necessary at this level.

MacBride Hinton & Co employs experienced Accountants and Tax Agents from Australia, Sydney to provide your business with the specific financial services it needs. 

Get in touch with MacBride Hinton & Co today to see how we can help you.


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