When Should You Hire An Accountant For Your Small Business?

Knowing when to hire an accountant in Mackay can save your small business time, money and unnecessary tax headaches. For Mackay business owners, the right time is often when you're setting up, approaching the GST threshold, hiring staff or planning to grow.

You don't need an accountant managing every transaction from day one. However, professional advice at key stages can help you avoid costly mistakes and stay on top of your obligations.

Do You Need an Accountant When You're Just Starting Out?

If you're a new sole trader or small business owner, you might be asking: do I need an accountant for my small business if I'm not earning much yet? You may not need ongoing accounting services straight away, but an initial consultation can help you establish good financial habits.

An accountant can help you understand:

• How much to set aside for income tax.
• Which business expenses you can claim.
• How to separate personal and business finances.
• Whether your bookkeeping systems are suitable.

For example, a newly self-employed electrician in Mackay might manage invoicing independently but benefit from accounting advice before purchasing a work vehicle or accepting a large contract.

The earlier you understand your financial responsibilities, the easier they become to manage.

When You're Registering Your Business & Setting Up Your Records

Starting a business involves more than obtaining an ABN. The decisions you make during setup can affect your tax obligations, record-keeping and future growth.

Before registering, consider speaking with an accountant about your business structure, accounting software and financial reporting requirements. Operating as a sole trader or company involves different tax treatments, costs and legal responsibilities, so it's worth understanding which structure suits your circumstances.

According to the Australian Business Register, eligible businesses can register for an ABN free through the official government service. You'll also need bookkeeping processes to track income, expenses and receipts.

A bookkeeper in Mackay can help maintain your everyday records, while an accountant can provide guidance on taxation, reporting and financial decisions. Getting these systems right early can help prevent unnecessary administrative work later.

When Your Turnover Is Approaching the GST Threshold

If your business turnover is approaching $75,000, it's time to review your GST registration obligations.

Under current Australian Taxation Office (ATO) guidance, most businesses must register for GST when their GST turnover reaches or is expected to reach $75,000. Importantly, GST turnover generally relates to relevant business sales, not profit.

Once required to register, you generally have 21 days to complete your registration.

What Changes When You Register for GST?

You'll generally need to:

• Charge GST on taxable sales.
• Issue compliant tax invoices when required.
• Track GST collected and eligible GST credits.
• Lodge Business Activity Statements (BAS).
• Pay any net GST owing to the ATO.

For example, a Mackay landscaping contractor who secures several ongoing contracts may approach the threshold faster than expected. Without reviewing their pricing and invoicing, GST obligations could affect their profit margins.

Speaking with accountants in Mackay before reaching the threshold can help you prepare your systems and understand your responsibilities. You can also review the ATO's GST registration guidance.

When You're Hiring Your First Employee

Hiring your first employee is another important time to seek accounting advice. Whether you're employing an apprentice, tradesperson or administration assistant, you'll have additional payroll, tax and superannuation responsibilities. These generally include:

• Registering for PAYG withholding when required.
• Withholding tax from employee wages.
• Reporting payroll through Single Touch Payroll (STP).
• Paying superannuation for eligible employees.
• Maintaining accurate payroll records.

Since 1 July 2026, Payday Super rules generally require qualifying superannuation contributions to reach employees' super funds within seven business days of payday, subject to applicable exceptions.

An accountant can help you understand your payroll tax and reporting obligations before your first employee starts. For further information, refer to the ATO's employer guidance.

When You're Applying for Finance or Planning to Grow

Business growth creates opportunities, but it also introduces financial commitments. If you're applying for a business loan, purchasing equipment or expanding your team, an accountant can help assess whether your business is financially prepared.

What Should You Review Before Expanding?

Important considerations include:

• Cash flow: Can you cover expenses while waiting for customer payments?
• Profitability: Are your jobs generating enough profit after expenses?
• Equipment costs: Can you afford repayments, insurance and maintenance?
• Staffing: Will additional revenue support wages and superannuation?
• Forecasting: How will growth affect your future financial position?

For example, a Mackay plumbing business considering a second vehicle and another employee should assess the full ongoing costs before committing. Professional business advice in Mackay can help you evaluate these decisions using reliable financial information.

The Cost of Waiting Too Long to Get an Accountant

Waiting until tax time or a financial problem arises can make accounting issues harder to resolve.

Common warning signs include:

• You're regularly short of money for tax bills.
• You don't know whether your business is profitable.
• Your BAS or tax returns are overdue.
• Your financial records are disorganised.
• You're falling behind on payroll or superannuation.
• You're making large purchases without understanding your cash flow.

For example, a sole trader who doesn't set aside money for income tax may face a substantial bill without enough cash available to pay it. Late reporting or payments can also result in interest or penalties, depending on the circumstances.

An accountant can help identify problems, improve your financial processes and establish a clearer picture of your obligations.

How to Get Started With Accountants in Mackay

If your business is approaching any of these milestones, arranging an initial accounting consultation is a practical next step.

You don't need perfectly organised records before seeking help. Bring whatever financial information you have available, such as your ABN details, income and expense records, previous tax returns, BAS statements or bookkeeping reports. Explain your current business situation and any upcoming decisions. This helps your accountant identify where support would be most valuable.

If you've been searching for an accountant, our guide on how to choose the right tax accountant in Mackay explains what to consider.

The best time to engage an accountant is before a major financial decision or compliance obligation becomes a problem. Whether you're starting out, registering for GST, employing staff or expanding, early advice can help you move forward with confidence.

Whitson Dawson Accountants supports small businesses across Mackay and surrounding areas. Contact our team of tax accountants Mackay business owners can rely on for practical guidance with taxation, accounting and business obligations.

Frequently Asked Questions

Do I need an accountant if I'm a sole trader?

You aren't generally required to hire an accountant simply because you're a sole trader. However, professional advice can help with tax deductions, GST obligations and financial planning.

When should a small business hire an accountant?

Consider hiring an accountant when setting up your business, approaching the GST threshold, employing staff, applying for finance or planning significant growth.

Can I do my own bookkeeping and still use an accountant?

Yes. Many small business owners manage everyday invoicing and expenses themselves while using an accountant for tax returns, BAS advice and financial planning.

Do I need to register for GST if I earn less than $75,000?

Most businesses below the $75,000 GST turnover threshold don't need to register solely because of their turnover. However, different rules apply to certain activities, and voluntary registration is generally available.

Should I get an accountant before hiring my first employee?

Yes. An accountant can help you understand PAYG withholding, Single Touch Payroll, superannuation and payroll reporting requirements before your employee starts.

How much does a small business accountant cost in Mackay?

Fees vary depending on your business complexity and the services required. Ask for a clear fee estimate covering the specific accounting or advisory support you need.