Running a small business in hospitality is fast-paced, people-focused and often unpredictable. Between managing rosters, customer expectations, suppliers and cash flow, tax and compliance can easily slip down the priority list. Yet for cafés, restaurants, bars and accommodation providers, few things have a bigger impact on profitability and peace of mind than getting tax and staff management right.
This is where the right accountant becomes more than a number-cruncher — they become a strategic partner in your business.
Tax in Hospitality: More Than Just Lodging a Return
Hospitality businesses face unique tax challenges. Cash flow fluctuates, margins are tight and compliance obligations can change quickly. GST, PAYG withholding, superannuation, payroll tax and BAS reporting all need to be handled accurately and on time.
One of the most common mistakes hospitality owners make is treating tax as a once-a-year exercise. In reality, tax planning should be ongoing. Understanding your GST position, setting aside the right amounts for BAS, and forecasting tax liabilities throughout the year can prevent nasty surprises and reduce stress.
An experienced accountant can help you structure your business properly, identify allowable deductions, manage depreciation on fit-outs and equipment, and ensure you’re not paying more tax than necessary — or exposing yourself to penalties.
Staff Management: Compliance Is Critical
Staff are the backbone of any hospitality business, but they also bring complexity. Award rates, penalty rates, overtime, superannuation, leave entitlements and payroll compliance must all be handled correctly. With casual and part-time work common across the industry, even small errors can add up quickly.
Recent changes and increased enforcement around wage underpayments mean hospitality businesses are under greater scrutiny than ever before. Misclassifying employees, using incorrect award rates or failing to keep accurate records can result in fines, back-payments and reputational damage.
Accountants who specialise in hospitality understand these pressures. They can help you implement compliant payroll systems, ensure super is calculated correctly, and align your rostering decisions with your labour cost targets.
Cash Flow, Rosters and Profitability
Labour is often the single biggest expense for hospitality businesses. Knowing when to roster up, when to scale back, and how to manage seasonal demand is critical to maintaining profitability.
Your accountant can help analyse staff costs as a percentage of revenue, track trends, and identify areas where efficiency can be improved without compromising service. This type of insight turns accounting from a compliance function into a decision-making tool.
Why Accountant Advice Matters
Many hospitality business owners try to handle tax and payroll themselves to save money. In practice, this often costs more in the long run. Mistakes, missed opportunities and reactive decisions can erode profits and increase stress.
A good accountant provides clarity. They help you understand your numbers, plan ahead and make informed decisions. They act as an early warning system, flagging issues before they become problems.
More importantly, they free you up to focus on what you do best — running your venue, leading your team and delivering great customer experiences.
A Smarter Way to Run Your Business
Hospitality is demanding, and there are enough variables outside your control. Tax and staff management don’t need to be among them.
By working with an accountant who understands the hospitality industry, you gain more than compliance support. You gain confidence, better visibility over your business, and a trusted adviser who helps you build something sustainable — not just busy.
In an industry where margins matter and mistakes are costly, the right advice isn’t an expense. It’s an investment in the long-term success of your business.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Please consider whether the information is appropriate to your circumstance before acting on it and, where appropriate, seek professional advice.