Accountant for New Sole Traders

How an accountant helps new sole traders

A good accountant for new sole traders starts with a short discovery: what you sell, how you get paid, likely turnover, whether you’ll hire, and if GST applies. From there they:

• Register your ABN and business name (if trading under a name that isn’t your own).
• Assess GST: register now, later at the $75,000 threshold, or immediately for ride‑sourcing.
• Set up software (Xero, MYOB or QuickBooks Online), bank feeds and receipt capture.
• Design a simple month-end routine so BAS and your tax return are painless.
• Explain deductions, PSI rules and how to separate business and personal spending.
• Plan cash flow: how much to set aside for GST, income tax and super.

Australian context to keep in view

• ABN is required to invoice other businesses; apply before registering for GST.
• GST registration is compulsory at $75,000 GST turnover, and for taxi/ride‑sourcing regardless of turnover.
• If you don’t quote an ABN, payers may need to withhold 47% from payments to you.
• Hiring? You’ll need Single Touch Payroll, super guarantee, and PAYG withholding.
• Keep business and personal banking separate; retain records for 5 years.
• Tax return due 31 Oct if self-lodging, or later under a registered tax agent’s program.

Sole trader setup checklist (step‑by‑step)

1. Decide on your trading name and register it with ASIC if not using your own legal name.
2. Apply for an ABN and consider GST registration based on expected turnover and industry.
3. Open a business bank account; set up a tax savings account to hold GST and income tax.
4. Choose software and connect bank feeds; set up invoicing and receipt capture.
5. Create a simple chart of accounts and GST settings matched to what you sell.
6. Set your invoice template to include ABN, GST (if registered), and clear payment terms.
7. Establish a monthly bookkeeping routine and a quarterly BAS process (if registered).
8. Plan for super contributions and consider insurance (public liability, PI, income protection).
9. Review PSI, vehicle logbooks, home office method and asset write‑off rules.

What to compare before you commit

Deductions and record keeping for sole traders

• Keep receipts (digital is fine) and reconcile monthly to avoid year‑end catch‑ups.
• Motor vehicle: use logbook or cents‑per‑km; choose the method that fits usage and record quality.
• Home office: fixed rate or actual cost; track hours and eligible costs properly.
• Assets: understand instant asset write‑off and depreciation rules before you buy.
• PSI: if most income is for your personal efforts to one client, learn the PSI tests to avoid disallowed deductions.

Key dates and registrations

• BAS (if GST registered): generally quarterly, due 28 days after quarter end (agents may have concessions).
• Tax return: 31 Oct if self‑lodging; later via a registered tax agent’s lodgment program.
• STP and super: each pay run reported via STP; super due quarterly by the 28th of the following month.
• PAYG instalments: the ATO may start these once your business profit grows; adjust with your accountant if needed.

Best next steps

Write down your immediate outcome: for example “register ABN and GST and get Xero running,” “clear a BAS backlog,” or “prepare my first sole trader tax return.”

Shortlist providers who show clear process, transparent pricing, and practical examples with sole traders in your industry. Use the links below to move into ABN, GST, structure or cash‑flow topics as needed.