How this usually works
A good accountant for sole traders starts with a short review of your current position: ABN and registrations, turnover, software, bank feeds, invoices/receipts, and any ATO or deadline pressure.
From there, the work typically falls into three phases:
- Immediate triage: fix coding issues, bring books up to date, register for GST if required, and lodge any overdue BAS or returns.
- Process design: set up or streamline your software (Xero, MYOB, QuickBooks), automate bank feeds and receipt capture, and separate business from personal spending.
- Ongoing review: quarterly BAS, PAYG instalments, year‑end tax return and business schedule, plus advice on cash flow, pricing and deductions.
Australian context to keep in view
- GST registration is required once your GST turnover meets the ATO threshold within a 12‑month period. Ride‑sourcing/taxi services must register from the first dollar.
- BAS frequency is typically quarterly for sole traders; monthly if turnover or industry needs dictate. A registered BAS agent can lodge and often access extensions.
- PAYG instalments smooth tax across the year. Your accountant will help set an appropriate rate to avoid bill shock at year‑end.
- Personal Services Income (PSI) rules may limit certain deductions if income is mainly from your personal effort. Get a tax accountant to assess PSI and evidence.
- If you employ staff, you must run Single Touch Payroll (STP), withhold PAYG where required and pay super on time.
- Digital record‑keeping in bookkeeping software plus receipt capture makes BAS and tax faster and more accurate.
What to compare before you commit
Scope
Confirm it covers what a sole trader needs: bookkeeping, GST/BAS, PAYG instalments, deductions review, and the individual return with the business schedule.
Software fit
Choose someone fluent in your stack (Xero, MYOB, QuickBooks) who can explain how bank feeds, rules, receipt capture and reporting will work for you.
Turnaround and communication
Ask about response times, BAS and year‑end timelines, and how they handle urgent ATO requests during peak periods.
Commercial fit
Compare fixed fees vs hourly, inclusions/exclusions, meeting rhythm, and whether you want compliance only or ongoing advice.
Typical pricing for sole traders
Pricing depends on transaction volume, whether bookkeeping is included, and how much advice you want across the year.
- Annual tax return only (with business schedule): usually a few hundred dollars depending on complexity and record quality.
- Quarterly support (BAS plus light bookkeeping): often from around $150–$500+ per month.
- Full service (bookkeeping, BAS, year‑end, advice): scaled to volume, seasonality and add‑ons like payroll.
Ask for a written scope with clear inclusions so you know what’s covered and what triggers extra fees.
Common sole trader scenarios
- Just started trading and need ABN, GST guidance and software setup.
- Hit the GST threshold and need BAS put in place quickly.
- Catch‑up bookkeeping after months of spreadsheet or bank‑statement chaos.
- Contractor, tradie, rideshare/food delivery, consultant or creative with mixed income and expenses to apportion.
- Hiring first staff member and need STP payroll, PAYG withholding and super organised.
- Considering a move from sole trader to company and want a tax and risk comparison first.
Best next steps
Write down the exact outcome you want: get BAS up to date, set up Xero, prepare the tax return, claim the right deductions, start payroll, or model moving to a company.
Then shortlist providers against that outcome, not just the title. Use the service hubs and comparison pages to sanity‑check your choice:
- Small Business Accountant hub to see all pathways.
- Bookkeeping services if records need regular care.
- Tax accountant for deductions, PSI and year‑end strategy.
- BAS agent services for GST/BAS and ATO lodgements.
- Comparison pages to weigh options clearly.
Frequently asked questions
What does an accountant do for sole traders?
They set up or review bookkeeping, advise on GST registration, prepare and lodge BAS, manage PAYG instalments, maximise legal deductions, and complete your individual tax return with the business schedule. Many also help with cash flow, pricing and moving to a company when the time is right.
When should a sole trader register for GST?
Register when your GST turnover meets or is likely to meet the ATO threshold within a 12‑month period. Taxi and ride‑sourcing businesses must register from the first dollar. Once registered, you must lodge BAS and account for GST on your sales and purchases.
How much does an accountant cost for a sole trader?
Expect a few hundred dollars for an annual return only, through to ongoing packages from roughly $150–$500+ per month if you include bookkeeping, BAS and support. Get a written scope to make inclusions clear.
Do I need payroll as a sole trader?
If you pay yourself drawings only, you don’t run payroll. If you hire employees, you must run STP payroll, withhold PAYG where required and pay superannuation on time.
What records should I keep?
Keep tax invoices, bank statements, mileage/logbook if you claim vehicle expenses, asset purchase documents, and payroll records if you employ. Digital records in compliant software are best practice and speed up BAS and tax.
Should I stay a sole trader or set up a company?
Consider moving when profit and tax rise, you take on staff or higher risk, or contracts require a company. An accountant can compare tax, cost and risk so you decide with evidence.