Can I Do My Own Bookkeeping, or Should I Hire a Bookkeeper? A Practical Decision Guide
Last updated: 25 October 2026.
You can do your own bookkeeping. Nothing in Australian law says a business must hire a bookkeeper. What the law does require is that your records are complete, accurate, kept for the right period and available when the ATO asks. The real question is whether doing it yourself is still the best use of your time and the safest way to meet those obligations.
This guide sets out what the rules require, when DIY works well, the warning signs it has stopped working, and the options in between. It is general information, checked against primary sources on 25 October 2026.
The short version: DIY can work for a very small, simple business with a disciplined routine. Consider hiring help when volumes grow, you employ staff, BAS deadlines cause stress, or the books are behind. The one thing you cannot do is skip the records.
What the rules require, whoever does the work
The ATO says you are legally required to keep records of all transactions relating to your tax, super and registration affairs. The records need to show enough to work out the essential features of each transaction: generally the date, amount and description, the GST information, and the purpose of the transaction. Most records must be kept for five years, must be in English or easily converted to English, and must be stored so that they are protected from being changed or damaged. You must be able to show them if the ATO asks.
business.gov.au adds that if the ATO finds errors in your records, you may have to pay financial penalties or complete a record-keeping course. It also says you can keep either digital or paper records, and that the ATO recommends digital where possible.
These rules apply whether you or a bookkeeper keeps the books. Hiring someone does not move the responsibility away from the business owner; it changes who does the work.
What DIY bookkeeping involves
- Recording income and expenses and keeping the supporting documents.
- Using a separate business bank account. The ATO says that if you operate through a partnership, company or trust you must have a separate bank account for the business. For a sole trader it is not compulsory, but the ATO says it is better, because it keeps business and personal transactions apart.
- Reconciling regularly. The ATO recommends regular reconciliation of your banking records so you know what money goes through your account and why.
- Getting GST right. If you are registered, you need to charge GST correctly, claim credits only with valid tax invoices for purchases over A$82.50 including GST, and use the right accounting method. See our guide on catching up on overdue bookkeeping and BAS if you have already fallen behind.
- Payroll, if you have staff. Pay runs, PAYG withholding, super and the related records.
- Lodging BAS on time. Even a nil BAS must be lodged by the due date.
When doing it yourself usually works
These are our general observations rather than rules, but DIY tends to work when:
- You have one or two bank accounts and a modest number of transactions a month.
- You have no employees, or very few and simple pay runs.
- You are comfortable with accounting software, and bank feeds are connected.
- You reconcile at a fixed time every week or fortnight and keep receipts as you go.
- You understand GST well enough to code purchases and sales correctly.
Business.gov.au points out that you can use accounting software, web-based systems or even spreadsheets, and that software helps you record transactions, calculate GST, prepare financial statements and generate invoices. For sole traders, the ATO’s myDeductions tool can record income, expenses and vehicle trips.
Warning signs it is time to hire help
Xero’s guide to hiring a bookkeeper (published 11 May 2026) lists signs such as spending several hours a week recording transactions and reconciling instead of running the business, errors creeping into your records, BAS deadlines causing stress because records are not ready, and avoiding the books because they feel overwhelming. In our experience these are also reliable triggers:
- Your bank reconciliations are more than a month behind.
- You are unsure whether GST has been coded correctly, or you keep fixing BAS mistakes.
- You have taken on employees and payroll and super are getting complicated.
- You are applying for finance and the lender wants clean, current reports.
- You are growing and need monthly profit and cash reports, not just compliance. Our guide on why a profitable business can run out of cash shows why timely numbers matter.
The real cost of DIY
DIY is not free. It costs your time, and your time has a price. A simple way to test it: estimate the hours you spend each month on bookkeeping, multiply by what an hour of your working time is worth, and compare with a fixed monthly quote. Xero’s guide gives typical market ranges of A$40 to A$120 per hour for bookkeepers and A$500 to A$2,500 per month for ongoing outsourced support, depending on volume and scope. These are published market ranges, not our quotes. Our guide to bookkeeping costs per month in Australia explains how to compare quotes.
Also weigh the risk side. Errors in GST credits, missed lodgments and incomplete records can lead to penalties and interest, and the ATO can adjust or deny claims that your records do not support.
The middle options
| Option | What you do | What the bookkeeper does | Suits |
|---|---|---|---|
| Full DIY | Everything | Nothing | Very small, simple businesses |
| DIY with a regular check | Day-to-day entry and receipts | Reviews and corrects before each BAS | Owners who like to stay hands-on |
| BAS only | Bookkeeping | Prepares and lodges BAS (must be a registered BAS agent) | Tidy books, nervous about lodgment |
| Split | Sales and invoicing | Bills, reconciliation, payroll, reports | Growing businesses |
| Fully outsourced | Approve and pay; answer questions | Everything, with monthly reports | Owners who want their time back |
If a provider will lodge your BAS, check that they are a registered BAS agent. The Tax Practitioners Board says that entities providing BAS services for a fee or other reward must be registered, and registrations appear on its public register. For a clear picture of the work involved, read what a bookkeeper does for a small business.
A quick decision checklist
- Are my books reconciled to the end of last month? If not, get help or block time now.
- Do I know which GST accounting method I use and why?
- Are my BAS lodged and paid on time, without a last-minute scramble?
- Do I get monthly reports I actually use?
- Could I explain every figure on my last BAS?
If you answered no to two or more, a conversation with a bookkeeper is likely to save you time and stress.
How we help
Whether you want full bookkeeping, a regular review of your own entries, or BAS lodgement only, we scope it with you in writing first. See our bookkeeping services and BAS agent services, or email info@guidancegrowth.com.au or use our get in touch page.
Frequently asked questions
Is it legal to do my own bookkeeping in Australia?
Yes. There is no legal requirement to hire a bookkeeper. You are legally required to keep records of all transactions relating to your tax, super and registration affairs, generally for five years, and to be able to show them to the ATO.
Do I need a separate business bank account?
If you operate through a partnership, company or trust, the ATO says you must have a separate bank account for the business. Sole traders do not have to, but the ATO says it is better to, so business and personal transactions stay separate.
Can I lodge my own BAS?
Yes. Most businesses that lodge their own BAS do so online. You can also lodge through a registered BAS agent, who may give you extra time to lodge and pay quarterly BAS.
What happens if my records are not good enough?
business.gov.au says that if the ATO finds an error in your records you may have to pay financial penalties or complete a record-keeping course. The ATO may also adjust or deny GST claims that your records do not support.
How much does it cost to hire a bookkeeper?
Xero’s guide gives typical ranges of A$40 to A$120 per hour and A$500 to A$2,500 per month for ongoing outsourced support, depending on volume and scope. These are published market ranges, not quotes.
Sources and further reading
- ATO: Overview of record-keeping rules for business (checked 25 October 2026)
- ATO: Banking records for business (checked 25 October 2026)
- ATO: GST records (checked 25 October 2026)
- ATO: BAS and GST tips (checked 25 October 2026)
- ATO: When you can claim a GST credit (checked 25 October 2026)
- business.gov.au: Record keeping (checked 25 October 2026)
- Xero AU: How to hire a bookkeeper (published 11 May 2026; checked 25 October 2026)
- Tax Practitioners Board: BAS services (checked 25 October 2026)
This article is general information, not personal advice. Rules and dates can change, so check ato.gov.au or acnc.gov.au for the latest, or speak to us about your situation.