How this usually works for family businesses
We begin with a short diagnostic: structure (company, trust, partnership or sole trader), who works in the business, software stack, current BAS/GST position, payroll settings, loan accounts, vehicles/FBT, and any deadlines already in motion.
Then the work moves in three passes:
1) Triage and compliance reset. Bring bookkeeping current, reconcile bank/loan accounts, fix STP/payroll categories for family members, review superannuation and PAYG, clear BAS backlogs, check trust minutes and Division 7A exposure.
2) Process and reporting design. Lock a monthly close, map how money moves between entities, document drawings vs wages, standardise invoices/receipts, and set up management reports that show cash, margins and drawings vs salary.
3) Ongoing review and planning. Quarterly tax planning, annual structure review, funding and equipment decisions, and scheduling succession or exit discussions so they actually happen.
Australian context to keep in view
- GST and BAS: Accurate coding and proofs are essential; missed fuel tax credits and incorrect mixed‑use car expenses are common fixes.
- Payroll and STP: Family members on wages must be processed through Single Touch Payroll with superannuation and PAYG withheld when required.
- Trusts and companies: Timely distribution minutes and Division 7A compliance prevent nasty year‑end surprises.
- FBT: Private use of vehicles and benefits for family employees can trigger Fringe Benefits Tax if not documented and substantiated.
- Small business CGT concessions: Critical for succession, sale or restructure—eligibility should be tested well before a transaction.
Common scenarios we solve
- Switching from drawings to wages for a director or spouse and aligning awards, STP and super.
- Cleaning up shareholder/beneficiary loan accounts and documenting Division 7A loan agreements.
- Preparing valid family trust distribution resolutions and mapping tax across adult beneficiaries.
- Consolidating multi‑entity bookkeeping and inter‑entity charges with clear month‑end reconciliations.
- Designing simple KPI dashboards that the whole family can agree on: cash, margin, break‑even and owner pay.
- Planning a staged handover to the next generation and testing finance options for a buy‑in or buy‑out.
What to compare before you commit
Scope
Ensure the proposal covers family‑specific issues: trust/company compliance, payroll for family members, BAS/GST, loan accounts, Division 7A, FBT, and management reporting—not just year‑end tax.
Software fit
Look for confidence in Xero or QuickBooks Online plus add‑ons you actually use (Hubdoc/Dext, POS, inventory, job costing). Ask them to explain the month‑end workflow.
Turnaround and communication
Confirm your month‑end close date, BAS review timing, how urgent items are escalated, and who attends meetings when family decisions are needed.
Commercial fit
Compare fixed vs monthly fees, inclusions, meeting rhythm, tax planning cadence and whether advisory is proactive or reactive.
Succession and exit planning
Succession is not a single meeting—it is a timetable. Start with valuations and affordability, map funding (profits, bank, vendor finance), confirm tax (CGT concessions, small business rollover), and document roles. Your accountant should coordinate with your lawyer on shareholder or unitholder agreements and estate planning so the paperwork matches the plan.
Software that works for family businesses
Keep your stack lean. Most family businesses do well with Xero or QuickBooks Online plus a receipts tool (Dext/Hubdoc), payroll with STP and super clearing, and a simple dashboard. Add inventory, job costing or POS only when they save time or improve decisions.
- Xero or QuickBooks Online set up for clean GST and payroll categories.
- Receipt capture for source documents and faster BAS review.
- Standard reports: cashflow, P&L by month, balance sheet with loan accounts, owner pay summary.
Best next steps
Write down exactly what you want from an accountant: e.g. “bring BAS current”, “put my spouse on payroll properly”, “clean up trust minutes and loan accounts”, “prepare for a handover in 18 months”.
Shortlist providers against that outcome, not just their title. The right accountant explains the path, sets dates, and shows you how the family’s goals translate to numbers.
Use the related pages to explore adjacent topics and choose the right level of help next.
Frequently asked questions
What does a small business accountant do for family businesses?
They connect your structure and family roles to clean books and compliant tax. Typical work: bookkeeping and BAS, STP payroll for family members, trust distribution minutes, Division 7A loan agreements, FBT checks on vehicles, and simple monthly reporting the family can use.
Should my spouse or adult children be on payroll?
If they work in the business, payroll with STP, super and PAYG is usually required in a company. In trusts and partnerships, drawings during the year and distributions at year‑end are common. The right approach depends on structure, hours, award coverage and roles—get it mapped and documented.
How do we avoid Division 7A issues?
Do not treat the company as a family bank. If shareholders or associates use company funds, ensure proper dividends, wages, or Division 7A loan agreements with minimum yearly repayments. Keep good documentation and reconcile loan accounts monthly.
When should we start succession planning?
Earlier than you think—ideally 18–36 months before a handover or sale. This gives time to optimise structure, confirm CGT small business concessions, align funding, and prepare the next generation to step in without risking operations.