Tax agent vs. DIY: What's best for your small business?

Understanding the basics

All Australian businesses must file tax returns annually, with deadlines varying based on business structure. Sole traders, partnerships, and trusts must lodge by 31 October unless using a tax agent, which extends the deadline. Companies generally have until 28 February. Accurate record-keeping is essential, with all income and expenses documented and stored for at least five years.

When DIY tax might work

If your business is simple—such as a sole trader with minimal deductions—DIY tax filing using the ATO’s myTAX platform might be a cost-effective option. The ATO also offers Tax Help, a free program for individuals with straightforward tax affairs, though it excludes business owners.

However, tax laws change frequently, and mistakes can lead to audits or penalties. Even if the ATO processes your return without issue, it doesn’t guarantee accuracy—errors may surface later, potentially costing you more. Additionally, self-lodging means missing out on potential tax savings that an expert might identify.

This is where Thriday can help. Thriday’s automated financial management system simplifies tax time by categorising expenses, tracking GST, and ensuring your records are always up to date. If you want even more peace of mind, Thriday’s done-for-you tax services include BAS and tax lodgment, so you can focus on growing your business while professionals handle the paperwork. With Thriday, you get the best of both worlds—DIY efficiency with expert-backed security.

When you need a tax agent

For businesses with complex structures, significant assets, or irregular financial events, hiring a tax agent is often the best move. Professional tax help is particularly beneficial for:

• Businesses operating as partnerships, trusts, or companies with different tax obligations.
• Handling capital gains tax on asset sales, investments, or rental properties.
• Managing international income, requiring expertise in Australian and foreign tax laws.
• Growing businesses nearing key tax thresholds, such as the $2 million turnover mark, where strategic tax planning can save money.
• Businesses needing BAS and GST support, ensuring compliance with reporting obligations.

The value of professional tax services

While hiring a tax agent costs money, their services are tax-deductible and can often pay for themselves through legitimate tax savings. A professional can help you:

• Identify deductions you might have missed.
• Ensure compliance with changing tax regulations.
• Save time by handling paperwork so you can focus on running your business.
• Plan ahead with tax strategies that optimise your long-term position.

Choosing the right tax professional

If you decide to go with a tax agent, ensure they are registered with the Australian Tax Practitioners Board. Look for a professional with experience in your industry and ask about their fees, approach to deductions, and availability during tax time.

Please check for reviews and testimonials of any professional service before you engage them. The number of people who come to Thriday after their tax agent overcharged them, forgot to lodge their BAS or simply provided incorrect advice is truly shocking.

The bottom line

DIY tax might suit businesses with straightforward finances, but as complexity grows, so do the risks. A tax agent not only ensures compliance but can also save you time, reduce stress, and improve your financial outcomes. Think of it as an investment in your business’s success!

If you’re looking for a hassle-free way to manage business finances, Thriday automates bookkeeping, tax calculations, and reporting—giving you more time to focus on what you do best. With Thriday’s done-for-you tax services, including BAS and tax lodgment, you can enjoy peace of mind knowing your financials are in expert hands. Find out how we can help today!

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