Published: June 2025
Running a small business in Australia is an exciting journey, but as your business grows, managing finances can become a time-consuming burden for owners. Deciding when to hire your first accounts person—whether a finance admin, bookkeeper, or accountant—can significantly impact your efficiency and profitability. This decision isn't just about numbers; it's about freeing up your time to focus on growth while ensuring compliance and financial accuracy. In this guide, we'll explore the key indicators that signal it's time to bring on an accounts professional, backed by data and real-world insights, and provide practical examples to help you make an informed choice.
Small business owners often wear multiple hats, with financial management being one of the most critical. According to the Australian Taxation Office (ATO), small businesses (those with an annual turnover of less than $10 million) make up 97% of all businesses in Australia, and many initially manage their own bookkeeping and tax obligations. However, as revenue grows or operations become more complex, manual financial management can lead to errors, missed opportunities, and burnout. A dedicated accounts person can streamline processes, ensure compliance with ATO regulations, and save you time.
A 2023 survey by Xero found that 62% of Australian small business owners spend over 10 hours per week on financial tasks, such as invoicing, payroll, and tax preparation. Hiring an accounts professional can reduce this time significantly, allowing you to focus on strategic tasks like acquiring new clients or expanding your product line.
Here are the primary signs that your Australian business is ready for its first accounts hire, along with detailed explanations and examples:
When your business starts generating consistent revenue or a high volume of transactions, manual bookkeeping becomes unsustainable. According to MYOB’s 2024 Business Monitor, 45% of small businesses reported increased revenue in the past year, but 30% struggled with cash flow due to inefficient financial tracking.
Example: Imagine you run a Sydney-based café, "Brew & Bite," with an annual turnover of $500,000. Initially, you managed invoicing, supplier payments, and GST calculations using spreadsheets. As your café expands to a second location, your weekly transactions double from 200 to 400, and you’re spending 15 hours a week reconciling accounts. Hiring a part-time bookkeeper could reduce this to 2-3 hours, ensuring accurate records and freeing you to focus on marketing or staff training.
Actionable Tip: If your turnover exceeds $250,000 annually or you’re processing over 100 transactions weekly, consider a part-time finance admin to handle invoicing, reconciliations, and basic reporting.
If financial admin is eating into your core business activities, it’s a clear sign you need help. Small business owners often spend 20+ hours weekly on tasks like accounts payable (AP), accounts receivable (AR), and payroll, especially when they lack accounting software expertise. Hiring a finance admin can reclaim this time.
Example: Sarah owns a Melbourne-based e-commerce store selling eco-friendly home goods. She spends 12 hours a week chasing late payments, updating ledgers, and preparing BAS statements. By hiring a finance admin for 10 hours a week at $35/hour, she saves $18,200 annually in lost productivity (assuming her time is worth $100/hour) and reduces errors in her financial records.
Actionable Tip: Calculate the hours you spend on financial tasks. If it exceeds 10 hours weekly, a finance admin or bookkeeper can save you money and stress.
The ATO requires businesses to lodge Business Activity Statements (BAS) quarterly or monthly, depending on turnover, and maintain accurate records for GST, PAYG withholding, and superannuation. Errors can lead to penalties, with the ATO issuing over $1.2 billion in fines to small businesses in 2023 for non-compliance.
Example: Tom runs a Brisbane-based construction company with five employees. He struggles to track superannuation contributions and GST for his subcontractors, leading to a $5,000 ATO penalty for late BAS lodgement. Hiring a part-time accountant ensures compliance, prepares BAS accurately, and advises on tax deductions, saving Tom from future fines.
Actionable Tip: If you’re unsure about ATO compliance or have received a notice, hire an accountant to review your processes and set up automated systems like Xero or MYOB.
If you’re preparing to expand or seek investment, accurate financial records are critical. A 2024 report by CPA Australia noted that 68% of small businesses seeking loans were rejected due to poor financial documentation. An accounts person can prepare balance sheets, profit and loss statements, and cash flow forecasts to support your growth plans.
Example: Lisa, who runs a Perth-based tech startup, wants to pitch to investors for $500,000 in funding. Her financial records are disorganised, with incomplete expense tracking. She hires a finance admin to clean up her books and produce professional reports, increasing her chances of securing investment.
Actionable Tip: If you’re planning to scale or seek funding within 6-12 months, hire an accounts person to ensure your financials are investor-ready.
Depending on your needs, you might hire a bookkeeper, finance admin, or accountant. Here’s a breakdown:
Scale Suite can straddle over all of these areas at an affordable rate.
Hiring your first accounts person is a strategic move to save time, ensure compliance, and support growth. Monitor your revenue, time spent on financial tasks, compliance needs, and growth plans to determine the right time. By acting proactively, you’ll transform financial management from a burden into a competitive advantage.
Review your weekly hours spent on financial tasks. If it’s over 10 hours or your turnover exceeds $250,000, start thinking about exploring hiring options. Your business deserves it.
Scale Suite provides scalable finance and HR solutions designed to fuel the growth of your Australian businesses. Offering customised packages tailored to your unique needs, our flexible solutions seamlessly integrate with your internal team, complementing in-house staff and tax accountants, while saving your time on unwanted tasks and reducing salary costs.
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