New Business Accounting Checklist

Your new business accounting checklist (step-by-step)

Work through these steps in order. If you get stuck, use the buttons to ask for help.

• Choose a structure and governance
  • Decide on sole trader, company, partnership or trust. See Business Structure Advice.
  • If setting up a company, obtain a Director ID and complete company registration. See Company Set Up Accountant.
• Get an ABN (and TFN if required). See ABN Registration Help.
• Register your business name with ASIC (if trading under a name as a sole trader/partnership).
• Decide on GST and BAS
  • Register for GST when turnover reaches $75,000 ($150,000 for NFP) or earlier to claim input credits.
  • Pick cash or accrual reporting and monthly or quarterly BAS.
• Set up PAYG withholding if you will have employees or relevant contractors.
• Set up superannuation and Single Touch Payroll (STP)
  • Configure super guarantee (currently 11.5%) and choose a clearing house.
  • Enable STP in your payroll software before the first pay run.
• Register for workers’ compensation/WorkCover in your state or territory (if applicable).
• Open a dedicated business bank account and merchant/online payment facility.
• Select accounting software (Xero, MYOB, QuickBooks Online) and:
  • Set up your chart of accounts aligned to your industry.
  • Connect bank feeds and enable invoice/expense capture.
  • Turn on e‑invoicing if your customers support it.
• Configure payroll
  • Add employees, tax scales, super funds and leave accruals.
  • Validate TFNs and complete STP pay event testing.
• Implement record keeping
  • Use a receipt capture tool, store readable digital copies and keep records for at least 5 years.
  • Maintain logbooks where needed (e.g. motor vehicle).
• Connect to ATO Online Services for Business via myGovID and authorise in RAM.
• Set payment terms and collections workflow to protect cash flow.
• Build a simple budget and 13‑week cash flow forecast. See New Business Cash Flow Set Up.
• Create a compliance calendar
  • BAS due dates, super payment due dates (generally the 28th after quarter‑end), payroll tax (if applicable), TPAR (certain industries), income tax and ASIC annual review for companies.

How this usually works

A good accounting checklist process starts with a quick discovery of your structure, deadlines and software, then moves through three layers:

1) Immediate triage: fix urgent items such as ABN/GST registration, STP activation, super clearing house access, late BAS or bank feed gaps.

2) Process design: configure your chart of accounts, bank rules, receipt capture, payroll settings and month‑end close so information is accurate and repeatable.

3) Ongoing review: set a simple monthly cadence—reconcile, review, BAS if due, and a quick performance check so issues are caught early.

Expected timings: triage in days, setup in 1–2 weeks for a simple file, and steady‑state in the first month. More complex situations (inventory, multi‑entity, clean‑ups) take longer.

Australian context to keep in view

• An ABN is required before GST registration and to avoid no‑ABN withholding (47% in many cases).
• GST registration is mandatory from $75,000 turnover ($150,000 for NFP). Choose cash or accruals based on invoicing and cash flow.
• STP is compulsory for employees; super guarantee is currently 11.5% and must be paid on time to avoid penalties.
• Companies require a Director ID and have ASIC annual review obligations in addition to ATO lodgements.
• Keep readable records for at least 5 years; digital storage is acceptable.

What to compare before you commit

Typical costs and timelines

• Software: approximately $25–$80 per month depending on features and payroll headcount.
• Initial file and payroll setup: approximately $300–$1,200+ depending on complexity and imports.
• Catch‑up or clean‑up: varies by volume and data quality.
• Ongoing bookkeeping: starts from a few hundred dollars per month based on transactions and payroll.

Use these as directional guides. A proper scoping call will give firmer numbers for your situation.

Common mistakes to avoid

• Leaving STP and super setup until after the first pay run.
• Using a personal bank account for business income and expenses.
• Choosing accrual GST when cash basis would smooth cash flow.
• Running with the default chart of accounts instead of tailoring to the business model.
• Skipping a monthly close and only reconciling at BAS or year‑end.

Best next steps

Write down the outcome you want—clean file, first BAS lodged, payroll running, or management reports you can trust. Then align providers to that outcome, not just a title.

Use these pages to go deeper before you engage:

• New Business Accountant
• ABN Registration Help
• Business Name and Tax Set Up
• Business Structure Advice
• Company Set Up Accountant
• Bookkeeping services, BAS agent services, Payroll services, Tax accountant