Do You Really Need an Accountant When Starting a Small Business in Australia?
- Prabashini Lohishwara
- Jul 18
- 5 min read
Table of contents
1. Introduction
Starting an Australian small business is exciting. You have an idea, you're motivated, and you want to get your first customers as quickly as possible. But before you've even earned your first dollar, you may already be facing a long list of expenses.
A website, business registration, branding, marketing, equipment, insurance, software, stock, uniforms... the costs can add up quickly.
Then comes another expense that many new business owners wonder about:
"Do I really need to pay for an accountant and bookkeeping from day one?
The honest answer is:
Not always.
If your business is still in the very early startup stage, your priority should usually be building a business that generates income. Once your business starts making consistent revenue, you can then invest more heavily in professional accounting services.
This guide explains how many Australian startups can manage their bookkeeping themselves in the early stages while still staying organised for tax time.
2. Your First Priority Is Building a Business
Every dollar matters when you're starting a business.
Instead of spending money on services you may not yet need, it's often better to invest in activities that help your business grow.
For example, if you're launching a clothing brand, your budget may be better spent on:
Purchasing quality stock
Product photography
Social media marketing
Online advertising
Building a professional website
These expenses are more likely to generate sales than paying for monthly bookkeeping before you've even made your first sale.
The goal is simple:
Focus first on generating revenue.
3. Most Australian Startup Businesses Are Financially Simple
Many new businesses have surprisingly straightforward transactions.
For example, if you're starting a gutter cleaning business, your expenses might include:
Ladders
Blowers
Safety harnesses
Safety glasses
White Card training
Work vehicle or van
Insurance
Website
Business cards
Fuel
Marketing
Then, once customers start contacting you:
You complete the job.
You send an invoice.
The customer pays you.
Bookkeeping is simply keeping a record of your business income and expenses.
When you spend money, keep:
Receipts
When you receive money, keep:
Customer invoices & Payment confirmations
That's all bookkeeping really is.
Money going out and money coming in.
4. Option One: Give Every receipt to an Accountant at Tax Time
The simplest approach is to collect:
Every receipt
Every invoice
Your business bank statements
Then hand everything to your accountant at the end of the financial year.
This works.
However, there's one downside.
The accountant now has to spend hours sorting through an entire year's worth of paperwork.
That extra work usually means a higher accounting fee.
This approach can still be a good option for many startup businesses. Rather than paying a monthly bookkeeping fee before your business is generating steady income, you can simply keep your records throughout the year and only pay for accounting services when you actually need them.
This allows you to invest your limited funds into growing your business first.
5. Option Two: Record Everything in Excel
A better approach is to keep a simple Excel spreadsheet throughout the year. Every time you spend money or receive money, record it in the spreadsheet.
For every expense, record:
Date
Supplier
Description
Receipt or invoice number
Amount
For every sale or in come received, record:
Date
Customer name
Description of the product or service
Invoice number
Amount received
For example:
Expenses
Date | Supplier | Description | Receipt or Invoice No. | Amount |
5 July 26 | Bunnings | Ladder | BN10235 | $320 |
12 July 26 | Officeworks | Printer Ink | OW54871 | $48 |
20 July 26 | Advertising | FB20418 | $120 |
Income
Date | Customer | Description | Invoice No. | Amount |
25 July 26 | John Smith | Gutter cleaning service | INV001 | $250 |
28 July 26 | ABC Property | Gutter cleaning service | INV002 | $420 |
Don't worry if you don't know whether a purchase should be treated as an expense or an asset for tax purposes. Simply record the transaction and keep the supporting receipt or invoice.
Your accountant can make the correct accounting and tax adjustments when preparing your financial statements and tax return at the end of financial year.
This simple habit will save time, keep your records organised, and often reduce your accounting costs at the end of the financial year.
6. Option Three: Accounting Software Makes It Even Easier
Another option is to use accounting software such as:
Xero
MYOB
QuickBooks
These platforms include many advanced features, but you can also use them just like an Excel spreadsheet to record your business transactions.
As your business grows, they can also help you by:
Importing bank transactions automatically
Storing receipts digitally
Creating invoices
Automated payment reminders
Generating financial reports
Although these platforms require a monthly subscription, they can save you time and often reduce the amount of work your accountant needs to do at the end of the financial year, which also help lower your accounting costs compared to above two options mentioned.
7. Some Simple Businesses Can Even Lodge Their Own Tax
For very small businesses with straightforward finances, it's possible to prepare parts of your tax information & lodge yourself using:
Your ATO Online Services account
There is a huge amount of free information available from the Australian Taxation Office & many more.
If your business only has simple income and expenses, you may be able to manage much of the bookkeeping yourself.
8. Final Thoughts
Starting an Australian small business doesn't always mean you need to pay for ongoing bookkeeping from day one.
In the early stages, your focus should usually be:
Winning customers
Growing revenue
Keeping every receipt
Recording your income and expenses
Staying organised
Whether you use a simple Excel spreadsheet or accounting software like Xero, MYOB, or QuickBooks, maintaining accurate records throughout the year will make tax time much easier and can reduce your accounting costs.
As your business grows, partnering with a qualified accountant becomes increasingly valuable not just for compliance, but for improving cash flow, reducing tax, and helping your business succeed.
Looking for an Approachable Accountant or Bookkeeper?
Team Rectitude supports Australian small businesses with bookkeeping, BAS and IAS lodgements, payroll, tax returns, business setup and ongoing accounting services.
We understand that new business owners often have many questions, particularly during the startup stage. Our aim is to provide clear, practical support and pricing that reflects the size and needs of your business.
Contact Team Rectitude to discuss your business and the support you require.
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