Have you ever considered how nice it would be if someone could help you with your personal finances? Someone to make things easier, take the stress out of planning and ease the load of arduous tasks like tax preparation? If you have, you might be ready to engage a personal accountant.

Personal accountants bring in-depth knowledge on a range of financial areas from budgeting and taxation to retirement and self-managed super funds. They can take the complexity out of making detailed financial decisions and contribute to helping you achieve your best life; whatever that looks like for you.

Whether your goals are more money, more time, more stability, or more freedom, here’s all you need to know about personal accountants and if it’s time for you to get one for yourself!

Who needs a personal accountant?

There’s lots of different reasons for engaging a personal accountant including efficient tax management, time-saving and stress reduction. 

Ultimately an accountant brings expertise and personalised attention to your unique financial situation, so anyone can benefit but particularly if you:

• Are looking for help with household budgeting 
• Have multiple income streams or investments, or are looking to invest
• Are coming up to retirement
• Are about to make a big financial decision like buying or selling your house, starting a business, or giving a financial gift
• Are struggling to keep up with managing your finances and tax obligations
• Are wanting to achieve a long term goal but don’t know how to get there

How a personal accountant can help

Here are some of the things a personal accountant can help with:

Bookkeeping

Bookkeeping is an important aspect of personal finances. Keeping a record of transactions such as utility bills, personal loans, credit cards, mortgage payments, and other daily transactions, is undertaken by a professional bookkeeper, ensuring accuracy and compliance with financial regulations when it comes time for personal reviewing of finances or submitting your BAS return.

Handling taxes

Effective handling of taxes is essential yet often burdensome. Entrusting the responsibility of filling out tax forms and filing returns to a personal accountant not only alleviates stress but also ensures timely preparation and submission of documents to avoid penalties.

Financial management and planning

Sometimes, unplanned purchases affect our ability to pay essential bills like mortgages or utilities. A personal accountant will create a daily, weekly, or monthly budget to avoid unnecessary expenses. 

Sound advice

Things pop up all the time, forcing you to pivot and adapt accordingly. Having access to professional advice when you need it is invaluable, and can be another stress reliever when an answer is just an email away.

Household Budgeting

Household budgeting is a fundamental practice for managing monthly expenses, preparing for unforeseen events, and facilitating the acquisition of significant assets without incurring debt. With the expertise of a personal accountant, individuals gain greater control over their finances through meticulous tracking of income and expenses.

Dealing with an inheritance

Large inherited estate often results in significant property taxes. If you have a personal accountant, they will advise what to do to avoid overpaying.

Preparing important documents

Before applying for loan capital, the accountant may prepare and organise all the necessary data to make financial calculations, which increases your chances of obtaining a loan.

Buy or sell your house

Want to buy or sell your house but don’t know how that will affect your financial position? An accountant and advisor can help you understand what the impact is in the long run. This will put you in a good place to buy or sell with confidence.

Help reach long term goals

Having a plan for reaching your goals is the key to long term success. An accountant can help you plan for the future with assistance in budgeting and tax planning. Whether you’re wanting to save for a holiday, start a business, or retire, an accountant will help you get there.

Structuring income

Have you got investments, a side-hustle, or multiple jobs? An accountant will help you structure your income to maximise your earning potential and minimise tax.

Self-Managed Super Funds

Self-Managed Super Funds (SMSF) is an area where professional expertise is indispensable. An accountant plays a crucial role in guiding individuals offering strategic advice and ensuring compliance with regulatory requirements.

Should I hire an accountant or do it myself?

Option 1: Use an expert

Bookkeeper

A dedicated personal bookkeeper is a financial expert tasked with balancing your bank accounts, loan accounts, and credit Cards.  Typically, a bookkeeper will handle various responsibilities such as reconciling bank accounts, preparing BAS reports and ensuring the accuracy of account statements.

Accountant

An accountant’s role is a little broader, encompassing strategic advice and financial management along with tasks like preparing and lodging tax returns. Accountants are equipped to help with everything from the nitty-gritty details like producing loan applications, through to setting up and managing self-managed super funds.

Benefits of using an expert

Managing personal budgets and finances can be time-consuming and stressful, especially for those unfamiliar with financial management. A personal accountant takes over this burden, enabling you to focus on other aspects of life while enjoying peace of mind knowing your finances are in good hands.

Drawbacks of using an expert

It can be expensive, but it really depends on what you’re using an expert for. Usually the reward of investing in an expert far outweighs the initial cost.

Option 2: Do-it-yourself

Still keen to manage your finances on your own?

Use software

If you’re going to tackle your finances solo, you will benefit from setting up with some accounting software.

There are several accounting software options available for personal finances that individuals can use to streamline financial management, set financial goals, budget well, track and categorise transactions and monitor spending patterns and progress.

Benefits

You will save money on accountant fees. In some cases handling your own finances can lead to greater autonomy and financial literacy, however this can be further enhanced with more of a collaborative approach between you and your accountant.

Drawbacks

Although you will save money in accountant fees, there is a high chance that you will actually lose money by missing tax saving opportunities, or getting caught out without proper future planning. Managing your accounting and taxes also takes up significant time.

Option 3: Combine your efforts

You can work with a professional bookkeeper or accountant to help you get started with your personal accounting. Look for someone knowledgeable in the software you plan to use. The bookkeeper can set up accounts that you place your information in. The bookkeeper can also review your work periodically (e.g., quarterly) to make sure you’re recording your income and expenses properly and reconciling your bank statement correctly.

Summary

There are many way to approach your personal finances and in most cases it’s worth asking an accountant to see where your personal finances present opportunities or risks.