Which best describes your accounting needs?
If you’re a sole trader in Australia, having the right accountant is not just helpful—it can be a major advantage. From tax minimisation to BAS lodgements and long-term planning, a good accountant helps sole traders stay compliant, reduce stress, and focus on running their business.
This guide explains what an accountant does for sole traders, what you should look for, what they can and can’t do under Australian law, and why many sole traders trust firms like Latitude Accountants to keep their finances on track.
What is a sole trader?
A sole trader is the simplest business structure in Australia. You’re legally responsible for all aspects of the business, including tax obligations, super contributions (if applicable), and debts. You report your business income as part of your personal tax return.
Do sole traders need an accountant?
It’s not legally required—but it’s almost always worth it.
An accountant can:
- Ensure you claim every legal deduction
- Lodge your BAS (if you’re registered for GST)
- Prepare your income tax return correctly
- Help you separate business and personal finances
- Assist with business planning, budgeting, and forecasting
- Keep you compliant with ATO obligations and deadlines
- Handle communication with the ATO if issues arise
Even if your business is small or part-time, using an accountant can save you time, reduce your tax, and prevent costly mistakes.
What does an accountant do for sole traders?
Here’s a breakdown of typical services for sole traders:
| Service | Description |
| Tax Return Preparation | Reporting income, deductions, and business-related offsets under your personal ABN |
| BAS Lodgement | If you’re GST registered, your accountant prepares and lodges quarterly or monthly Business Activity Statements |
| Bookkeeping | Some accountants offer bookkeeping or work with a bookkeeper to keep records accurate and up to date |
| Tax Planning | Helping you time expenses, restructure operations or prepay costs to minimise tax |
| Super Contributions Advice | Guidance on how to make personal super contributions and claim deductions |
| Cash Flow Support | Creating projections so you can manage income and expenses effectively |
| ATO Liaison | Responding to ATO letters, payment plans, and compliance notices on your behalf |
What deductions can sole traders claim?
An accountant helps you correctly claim business-related deductions such as:
- Tools, equipment and supplies
- Business-related travel and vehicle expenses
- Home office usage (electricity, internet, etc.)
- Mobile phone and software
- Professional memberships or insurance
- Marketing, website costs, and domain renewals
- Super contributions (up to concessional cap)
They also ensure you meet the substantiation requirements under ATO guidelines—keeping records for five years and separating personal and business use.
What to look for in a sole trader accountant
Choose someone who:
- Is a registered tax agent (check the Tax Practitioners Board)
- Has experience working with sole traders and small businesses
- Offers clear communication and explains things in plain language
- Uses cloud-based accounting tools like Xero or QuickBooks
- Provides fixed-fee pricing so you’re not hit with surprise bills
- Understands your industry (trades, creatives, consultants, etc.)
FAQs
Do I need to register as a business if I’m a sole trader?
Yes. You’ll need an ABN (Australian Business Number) and, depending on your turnover, may need to register for GST.
Can my accountant help me register for GST?
Yes, most accountants can assist with GST registration and advise on whether you need it (compulsory if turnover exceeds $75,000 per year).
Can I still do my own bookkeeping?
Yes. But your accountant can help you set up a system or software that makes BAS and tax return time easier.
Can an accountant help me transition from sole trader to company?
Yes, if you outgrow your current structure, an accountant can explain the pros, cons, and tax implications of moving to a company or trust.
Summary
Sole traders wear many hats—but managing your tax and compliance doesn’t have to be one of them. The right accountant helps you claim more, stay compliant, avoid penalties and focus on your business, not your paperwork.
Looking for an accountant who understands sole traders?
Contact Latitude Accountants for a confidential chat about your obligations and options.
📞 Contact Latitude Accountants
📧 info@latitudeaccountants.com.au
🌐 www.latitudeaccountants.com.au
Disclaimer
This information is general in nature and does not constitute financial or tax advice. Legislation and policies may change and individual circumstances vary. Always consult a registered tax agent or the ATO for advice specific to your situation.
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