Common Mistakes Tax Agents Make
Table of Contents
Becoming a Tax Agent Is Just the Start
Thinking Compliance Is Just About Forms
Lacking Confidence in Their Own Knowledge
Struggling to Get Clients
Undercharging for Their Services
Not Keeping Up with Tax Law Changes
Bonus: Not Using the Right Tax Software
Final Thoughts
Becoming a Tax Agent Is Just the Start
So, you’ve got your tax agent licence (or you’re on the way there). Great! But here’s the thing—getting licenced is just step one. What really matters is what happens next.
Running a successful tax practice isn’t just about knowing how to lodge a return. It’s about understanding compliance, pricing your services properly, finding clients, and keeping up with tax law changes. And yet, so many new tax agents get caught out making the same mistakes—mistakes that can cost them time, money, and sometimes even their reputation.
Let’s talk about these common pitfalls and, more importantly, how you can avoid them.
Thinking Compliance Is Just About Forms
Most people assume tax compliance is just a matter of ticking boxes and lodging returns. It’s not. The real challenge is in interpreting tax law correctly and applying it properly.
Where Things Go Wrong:
New accountants often take a “fill in the blanks” approach—plugging in numbers without understanding the why behind them. Before they know it, the ATO is asking questions about an incorrectly claimed deduction, and suddenly they’re on the back foot.
How to Avoid It:
Come at tax from a problem solving mindset—do you research, even if you think you know it. Things change.
Make ATO guidelines and tax law interpretations your best friend—this is what separates amateurs from pros.
Use structured workpapers to justify deductions and tax positions (not just to cover yourself, but to create consistency).
Get practical compliance training through a Tax Agent Supervision Program—because theory isn’t enough.
Lacking Confidence in Their Own Knowledge
Some new tax agents second-guess every decision. Instead of trusting their research, they constantly ask for validation. Sound familiar?
Where Things Go Wrong:
They hesitate when clients ask a question.
They worry about making a mistake instead of learning to back themselves.
They spend more time seeking reassurance than solving problems.
How to Avoid It:
Learn how to find answers yourself—use ATO’s Legal Database, case law, and tax resources.
Accept that not everything in tax has a black-and-white answer—judgment calls are part of the job.
Check out our Mastering Tax Research Using ChatGPT webinar that helps you build your research skills and confidence instead of just giving you answers.
Struggling to Get Clients
You’ve got your shiny new tax agent licence. Now what? Where are the clients?
Where Things Go Wrong:
They assume clients will just show up (spoiler: they won’t).
They focus only on tax skills and ignore marketing and networking.
They don’t know how to explain their value (so potential clients just go to someone else).
How to Avoid It:
Start with your network. The easiest first clients come from people you already know.
Build a referral system. Even one happy client can bring in more business.
Learn how to market yourself. LinkedIn, local networking, and content marketing all help.
Undercharging for Their Services
Many new tax agents think that lower prices = more clients. Wrong. Cheap pricing attracts the wrong clients—ones who will haggle, demand more, use up all of your time and never truly value your work.
Where Things Go Wrong:
They undervalue their expertise.
They attract bargain hunters instead of serious business owners.
They struggle to make a sustainable income.
How to Avoid It:
Set a minimum price—if a client won’t pay it, they’re not the right fit.
Know your worth. You’re a tax agent, not a discount store. Your giving real advice that can make and save money for your clients.
Learn how to price your services properly in business training.
Not Keeping Up with Tax Law Changes
Some tax agents think that once they’re licenced, they’re set for life. Nope. Tax laws change constantly—if you’re not keeping up, you’re falling behind.
Where Things Go Wrong:
They don’t track legislative changes.
They miss new ATO rulings.
They rely on outdated knowledge, putting their clients (and themselves) at risk.
How to Avoid It:
Stay updated with ATO rulings, legislation, and tax law updates.
Keep up with your CPD (Continuing Professional Development) requirements.
Join tax communities, attend webinars, and never stop learning.
Bonus: Not Using the Right Tax Software
Tax software can make or break your workflow. The best tax agents don’t just use their software—they master it.
Where Things Go Wrong:
They waste hours on manual processes.
They don’t leverage automation tools.
They don’t have a structured workflow, leading to avoidable mistakes.
How to Avoid It:
Learn Xero Tax and other compliance tools inside out.
Use standardised workpapers and checklists.
Take real-world software training to boost efficiency.
Final Thoughts
Avoiding these mistakes isn’t just about staying out of trouble—it’s about setting yourself up for long-term success.
If you want to fast-track your confidence and avoid these pitfalls, check out our Tax Agent Supervision Program—a structured, practical pathway to building a profitable, successful tax practice.
Your future self will thank you for it.
