Who Is Qualified to Prepare Company Annual Returns in Australia?

 

Who Is Qualified to Prepare Company Annual Returns in Australia?

Running a company in Australia comes with its fair share of responsibilities. Among them, preparing and lodging company annual returns is one that many business owners find confusing and stressful. I’ve been helping business owners with compliance matters for over 35 years, and I can honestly say: having the right professional by your side makes all the difference.

In this guide, I’ll explain who is qualified to prepare company annual returns in Australia, why it’s important to hire a professional, and how to choose someone who can keep your company compliant while giving you peace of mind.

What Is a Company Annual Return?

Before we dive into qualifications, let’s clarify what a company annual return is.

A company annual return is a report that companies must submit to the Australian Securities and Investments Commission (ASIC) each year. It confirms your company’s details, including:

• Company name and ACN (Australian Company Number)

• Registered office and principal place of business

• Directors and company secretary details

• Share structure and shareholder information

• Annual review fee payment

Submitting this return on time is essential. Late lodgement can lead to penalties from ASIC, and errors can trigger compliance issues with the ATO.

If managing your books is taking up too much of your time, let Globus Prosourcing take the stress off your plate. As a trusted bookkeeping services provider, we ensure your financial records are accurate, up-to-date, and compliant. Focus on growing your business while we take care of the numbers behind the scenes.

Why It’s Important to Hire a Qualified Professional

You might be thinking, “Can’t I just fill out the form myself?” Technically, yes. But here’s why hiring a professional is a much better idea:

• Avoid mistakes: Incorrect or missing information can lead to penalties from ASIC or the ATO.

• Save time: Preparing and lodging an annual return, and making sure your ATO obligations are met, can be confusing and time-consuming.

• Peace of mind: You know the return is correct, submitted on time, and compliant with ASIC and ATO requirements.

• Additional advice: Accountants can also advise on tax planning, shareholder structures, and company growth strategies, while keeping your ATO obligations in check.

I’ve seen business owners try to do it themselves only to make small mistakes that later cost hundreds in fines from the ATO or ASIC. When you hire a qualified accountant, you eliminate that risk.

Who Is Qualified to Prepare Company Annual Returns?

Not every accountant or bookkeeper can prepare a company annual return professionally. Here’s a breakdown of who is qualified in Australia:

1. Registered Company Accountants

These accountants specialise in company compliance and financial reporting. They are familiar with ASIC requirements, company structures, and reporting deadlines. They can prepare and submit annual returns accurately and efficiently.

2. Certified Practising Accountants (CPA)

CPAs are accountants who have met strict professional standards in Australia. Many CPAs work with companies of all sizes, helping business owners prepare annual returns, lodge BAS, and manage ATO obligations.

3. Chartered Accountants (CA)

Chartered Accountants have extensive training in taxation, accounting, and corporate compliance. They often handle larger or more complex companies but are also well-equipped to assist small businesses with annual returns and related ATO filings.

4. Registered Tax Agents

Some accountants are also registered tax agents with the ATO, which allows them to prepare and lodge tax returns alongside annual company returns. This dual expertise ensures both ASIC and ATO requirements are met seamlessly.

5. Bookkeepers (with Supervision)

Bookkeepers can prepare basic company information for annual returns, but they cannot provide official advice or lodge returns independently unless supervised by a registered accountant or tax agent. If you use a bookkeeper, always ensure a qualified professional reviews the submission.

How a Qualified Professional Prepares Annual Returns

Hiring a professional takes the burden off your shoulders. Here’s a step-by-step overview of what they do:

1. Verify Company Details
   The accountant checks your company name, ACN, director and shareholder information, and registered office address to ensure everything matches ASIC’s records.

2. Review Financial Statements
   For some companies, financial statements may be required. The accountant ensures they are accurate and comply with accounting standards.

3. Calculate Fees
   Annual returns come with a fee based on your company type. The accountant ensures the correct payment is included with the lodgement.

4. Submit to ASIC
   The professional lodges the annual return online through ASIC’s system. After submission, you’ll receive confirmation that your company is compliant for the year.

5. Coordinate with the ATO
   If there are any tax implications or reporting requirements linked to your company, a qualified accountant ensures your ATO obligations are met as well.

How to Choose the Right Professional

Not all accountants are the same. Here’s what I recommend when choosing someone to prepare your company annual return:

1. Check Credentials
   Make sure they are a CPA, Chartered Accountant, or registered tax agent. This ensures they are legally qualified to handle your return.

2. Experience with Companies
   Choose someone who has experience preparing company annual returns specifically. It’s different from personal tax returns.

3. Knowledge of ASIC and ATO Requirements
   Your accountant should understand both ASIC reporting obligations and ATO compliance requirements to ensure everything is accurate and timely.

4. Clear Communication
   You want someone who explains things in simple terms. Taxes and compliance are already complicated—your accountant should make it easy to understand.

5. Reliability
   Annual returns have strict deadlines. Pick someone who consistently lodges on time.

6. Transparent Fees
   Ask upfront how much they charge and what services are included. This avoids surprises later.

A Story from My Experience

Let me share a story from my 35 years in the field.

I once worked with a small business owner named Tom. He had just started a consulting company and was overwhelmed by compliance tasks. He tried preparing his annual return himself but made a few errors, and ASIC sent him a notice of non-compliance. He was stressed and didn’t know where to turn.

When he came to me, we reviewed all his company details, ensured his financial statements were accurate, and lodged his annual return correctly. We also checked that his ATO obligations were met. The relief on his face was unforgettable—he could finally focus on growing his business without worrying about fines or penalties.

Benefits of Hiring a Qualified Accountant

When you hire a professional, you’re not just ticking a box—you’re gaining:

• Reduced stress: No more worrying about deadlines or mistakes.

• Time savings: You can focus on running your business instead of paperwork.

• Compliance assurance: Your company meets both ASIC and ATO requirements.

• Additional guidance: From tax planning to business growth strategies, your accountant can advise on more than just the annual return.

Tips for Working with Your Accountant

To get the most out of your professional, keep these tips in mind:

• Organise your records: Keep your financial documents and company details up to date.

• Communicate openly: Ask questions whenever something is unclear.

• Plan ahead: Don’t wait until the last minute to start your annual return.

• Use their expertise: Ask for advice on tax planning, shareholder structures, and growth strategies.

Final Thoughts

Preparing a company annual return in Australia is more than just filling out a form. It requires accuracy, attention to detail, and an understanding of both ASIC and ATO requirements. The right accountant can save you time, reduce stress, and ensure your company stays compliant.

After helping business owners for over 35 years, I can confidently say: hiring a qualified professional is not an expense—it’s an investment in your company’s peace of mind and long-term success.

So if you’re asking, “Who is qualified to prepare company annual returns in Australia?” remember this: look for a CPA, Chartered Accountant, registered tax agent, or experienced company accountant. With the right person by your side, you’ll never worry about compliance again.