Last Updated: December 2025
Fintech companies in Australia continue to drive innovation in payments, lending, wealth management, and digital assets, but they operate under one of the most rigorous regulatory frameworks globally. Bookkeeping plays a critical role in ensuring accurate revenue recognition under AASB 15, correct GST treatment for mixed input-taxed and taxable supplies, and ongoing compliance with financial resource requirements for AFSL or ACL holders.
ASIC's heightened focus on fintech governance includes scrutiny of revenue practices, fee transparency, and (where applicable) customer money handling. Growth-stage fintechs frequently encounter issues where rapid increases in transaction volumes, subscriptions, or lending portfolios expose weaknesses in financial controls, leading to misstated profits, GST errors, or regulatory breaches.
This comprehensive guide explains how to manage bookkeeping for fintech companies in Australia, covering specialised chart of accounts setup, detailed revenue recognition by business model with extended examples, GST treatment including apportionment methodologies and reduced credit acquisitions, in-depth financial statement analysis, common mistakes with risk levels, and expanded FAQs addressing real-world scenarios.
Fintech companies require a specialised chart of accounts that segregates revenue streams, tracks direct and indirect costs precisely, and generates the investor and regulatory metrics needed for valuation and compliance.
Fintech expense profiles are often technology-heavy:
Direct costs include processing fees, fraud losses/provisions, KYC/AML verification, and banking partner charges. Mature models target gross margins of 60% to 75%, with early-stage fintechs often lower due to upfront scaling costs.
Under AASB 15, fintechs must identify contracts, performance obligations, transaction price (including estimates of variable consideration), allocate prices, and recognise revenue as obligations satisfy – either over time or at a point in time.
Recognition occurs when the transaction processes and the platform delivers the service.
Extended Example: A payments fintech charges 1.4% + $0.35 per transaction. Monthly volume reaches $4,200,000 across 105,000 transactions.
If historical data shows 0.28% chargeback/refund rate ($11,760 expected reversals), constrain revenue and provision accordingly. Reassess monthly based on actuals.
Recognition ratably over the term, deferring upfront payments.
Extended Example: $48,000 two-year enterprise subscription paid upfront on 1 January.
For monthly billing at $4,999, recognise full amount in the service month. Prorate partial months and handle upgrades/downgrades prospectively.
Recognition upon scheme settlement confirmation (typically 1-3 days lag).
Extended Example: Card issuer processes $22,000,000 monthly volume at blended 0.68% interchange = $149,600. Confirm daily settlements and reconcile against platform ledger to catch discrepancies.
Accrue daily or monthly using effective interest method.
Extended Example: Average daily reserves $12,000,000 at 5.2% annual yield = approximately $50,400 monthly ($12m × 5.2% / 12). Track separately if customer-entitled under terms.
Interest over term; defer fees and amortise.
Extended Example: $250,000 BNPL loan at 24% over 36 months with $1,500 establishment fee.
Core financial supplies remain input-taxed (no GST charged, limited credits); non-financial services taxable.
Use revenue-based, direct attribution, or hybrid methods; document for ATO.
Extended Example: 68% input-taxed, 32% taxable revenue. Annual mixed expenses $330,000 inc $30,000 GST.
Monitor Financial Acquisitions Threshold ($150,000 GST on input-taxed related purchases) to avoid full credit denial.
Disaggregate revenue for stakeholder clarity.
Example Monthly P&L:
$450,000–$520,000 typical, yielding 65%–70% margins.
Growth fintechs show high intangibles and receivables.
Extended Example:
Extended Example:
AFSL holders calculate NTA (equity minus intangibles/excluded assets) monthly; thresholds vary ($50,000 basic to $5m+ for custody/digital assets).
What licences do Australian fintechs typically require?
AFSL for financial product advice/dealing/custody (payments, lending, crypto). ACL for credit. AUSTRAC for designated services (remittance, crypto). Exemptions/sandbox available for testing.
How should transaction revenue with variables be recognised under AASB 15?
Estimate expected value, constrain for uncertainty (chargebacks). Reassess periodically with adjustments.
Can fintechs claim full GST credits on all expenses?
No for input-taxed. Apportion mixed; use fair methodology and document.
What net tangible assets must AFSL holders maintain?
Varies by authorisation ($50,000+ basic; $5m+ custody/digital assets). Monitor monthly.
How to account for interest on reserves or floats?
Accrue if retainable; disclose and segregate if customer-entitled.
What software works best for fintech bookkeeping?
Xero/NetSuite with integrations (Stripe, Adyen) for automation.
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