A practical guide to tax, compliance, and financial management for Australian small and medium businesses. No jargon, just clear advice to help you stay on top of your numbers.
Accounting for small business isn't as complicated as people make it sound. Here's what matters for Australian SMEs.
You don't need a degree to understand your business finances. The basics of tax, BAS, and compliance can be learned in an afternoon—this guide will show you exactly what you need to know.
Unlike bookkeeping (which is ongoing), most accounting tasks happen quarterly (BAS) or annually (tax returns). Plan for these deadlines and you'll stay stress-free all year.
If you've kept good bookkeeping records throughout the year, the accounting side becomes straightforward. It's all about having clean data when you need it.
Accounting is the process of preparing your financial information for tax authorities, lenders, and investors—and making sure you're compliant with Australian tax law. It goes beyond bookkeeping to include tax planning, financial reporting, and strategic advice.
The difference? Bookkeeping is recording transactions. Accounting is interpreting those transactions to minimize tax, ensure compliance, and guide business decisions.
Here's a complete breakdown of your accounting obligations as an Australian small or medium business. Understanding what's required is the first step to staying compliant.
Every business must lodge an annual tax return with the ATO. The type depends on your structure.
If you're registered for GST or have employees, you'll lodge a BAS every quarter.
You need accurate financial statements for decision-making, tax returns, and lenders.
Employers must pay super to employees earning over $450/month.
Real-time payroll reporting to the ATO every time you run payroll.
The ATO requires you to keep business records for 5 years.
Here's what your accounting year looks like. Understanding these deadlines helps you plan ahead and avoid last-minute stress.
New financial year begins, and you're wrapping up last year's tax obligations.
Tax return deadline for self-lodgers, plus planning for busy Christmas period.
Quieter period – good time to review performance and plan for EOFY.
Critical period for tax planning and ensuring everything is ready for June 30 close-off.
Understanding when you need professional help versus what you can handle yourself.
| Service | DIY | Bookkeeper | Accountant |
|---|---|---|---|
| Tax Return Preparation | |||
| BAS Lodgement | |||
| Tax Planning Advice | |||
| Financial Reporting | |||
| ATO Representation | |||
| Business Structure Advice | |||
| Audit Support | |||
| Strategic Planning |
You can do your own tax return if your affairs are simple (sole trader with no employees, basic income and expenses). But here's the reality:
An accountant typically saves you more than they cost through:
Most business owners find the peace of mind and tax savings make professional accounting well worth it.
Bookkeepers: Record transactions, reconcile accounts, prepare BAS, and produce basic financial reports. They handle the day-to-day data entry.
Accountants: Prepare tax returns, provide tax planning advice, handle ATO correspondence, advise on business structure, and offer strategic financial guidance.
In practice: Most small businesses need both. A bookkeeper keeps your records up to date throughout the year, while an accountant steps in for tax time and strategic decisions.
Think of it like a car: the bookkeeper does regular maintenance, the accountant handles major services and advises when to upgrade.
Accounting fees vary based on your business complexity, but here are typical Australian ranges:
What affects the price: Number of transactions, business structure complexity, industry, payroll requirements, and whether your books are well-maintained.
Money-saving tip: Keep good records throughout the year. Accountants charge more when they have to clean up messy books.
You should consider hiring an accountant when:
Even if you're not there yet, having an initial consultation with an accountant when starting out can save you thousands in restructuring costs later.
BAS stands for Business Activity Statement. It's how you report and pay GST, PAYG withholding, and other tax obligations to the ATO.
You need to lodge a BAS if:
Lodgement frequency:
Pro tip: If you have a registered BAS agent (like us), you get automatic lodgement extensions. This gives you breathing room and time to get everything right.
Yes, absolutely. This is one of the most common situations accountants deal with, and there's no judgment—we've seen it all.
Here's how we help:
Important: The longer you wait, the worse it gets. Penalties and interest compound, and the ATO gets less lenient. Getting help now is always better than waiting.
The ATO is surprisingly reasonable when you're proactive about fixing the problem. They'd rather work with you than chase you.
Here's the complete checklist of what your accountant needs:
Income documents:
Expense documents:
If you use Xero/MYOB/QuickBooks: Just give your accountant access and they'll extract what they need. Much easier!
Pro tip: The better organized you are, the less your accountant will charge. They bill by time, and sorting through shoe boxes is expensive.
Print this out and tick off each task every quarter. Staying on top of these items keeps you compliant and stress-free.
Download our comprehensive EOFY preparation checklist and quarterly compliance calendar to stay on top of every deadline.