How this usually works
Labels can blur what you really need. Clarify the job first, then choose the model that matches.
- Tax return service: Focused engagement to prepare and lodge an income tax return for an entity (individual, sole trader, company or trust). Usually a once‑a‑year service and limited to that year’s return, with optional add‑ons for schedules and reconciliations.
- Full service accountant: Ongoing support that links bookkeeping, BAS/GST, payroll and STP, tax, management reporting, ASIC compliance and advisory into one workflow.
Once the scope is clear, the decision is simpler. If you only need a clean, accurate return lodged on time, a tax return service can be ideal. If you want accurate books each month, proactive advice and no surprises at year end, a full service accountant is the better fit.
Australian context to keep in view
- TPB registration matters: Only registered tax agents can charge for tax return advice/lodgement. Only registered BAS agents can charge for BAS/GST lodgements and related advice.
- ATO and ASIC deadlines: Look for providers who manage lodgement calendars, STP submissions, superannuation due dates and company annual reviews.
- Software fit: Experience with Xero, MYOB or QuickBooks Online reduces rework and improves reporting quality.
- Communication rhythm: Quarterly or monthly check‑ins typical for full service; once‑off for tax return only.
If you are unsure which way to go, read Bookkeeper vs Accountant or compare DIY BAS vs BAS Agent for more context.
What to compare before you commit
Scope
Confirm exactly what’s included: tax return preparation and lodgement only, or also bookkeeping, BAS/GST, payroll/STP, year‑end accounts, tax planning, management reporting and ASIC agent services.
Software fit
Check real competence with your stack (Xero, MYOB, QuickBooks, add‑ons). Ask for their approach to reconciliations, bank rules, payroll audits and the ATO agent portal workflow.
Turnaround and communication
Agree on timelines, who chases what, and how queries are handled during peak periods. Look for clear escalation for ATO matters.
Commercial fit
Compare fixed‑fee vs hourly pricing, year‑round advisory availability, and how proactive the provider is with reminders and tax‑planning prompts.
Typical costs (guide only)
- Tax return service: individuals $150–$350; sole trader $400–$1,200; simple company/trust $1,200–$3,500+
- Full service accountant: from ~$300–$2,500+ per month depending on transaction volume, payroll, complexity and reporting needs
When to pick each option
- Pick a tax return service if you have tidy books, need a once‑off lodgement, or are a contractor/sole trader with straightforward income and deductions.
- Pick a full service accountant if you need regular bookkeeping, inventory/e‑commerce support, payroll and STP, group reporting, tax planning, R&D/FBT, or multi‑entity structuring.
- Growing businesses: Start with focused help, then transition to full service as transaction volume, headcount or compliance obligations expand.
Still unsure? Brief us on your situation and we’ll recommend the best‑fit pathway.
Frequently asked questions
What is the difference between tax return service vs full service accountant?
A tax return service prepares and lodges your annual income tax return for an entity and the specific year, often based on records you provide. A full service accountant manages the year‑round finance function—bookkeeping, BAS/GST, payroll/STP, year‑end accounts, tax planning and advisory—so compliance, cash flow and reporting stay aligned.
Which option is usually more cost effective?
For simple needs, a once‑off tax return is cheaper. Where you need ongoing bookkeeping, BAS, payroll, reporting or planning, a full service accountant is usually more cost‑effective over the year by preventing errors, penalties and rework—and by capturing tax planning opportunities early.
Does the best choice change as a business grows?
Yes. As revenue and payroll increase, and as you add inventory, contractors or multiple entities, the risk of a once‑a‑year approach rises. Most businesses shift to a full service accountant to keep books current, meet ATO/ASIC deadlines and enable better decisions.
What should I compare before choosing?
Confirm scope, TPB registration (tax or BAS), CA/CPA/IPA membership, software depth (Xero/MYOB/QBO), response times, who handles ATO contact, pricing method and whether you’ll receive proactive reminders and tax planning.