Article Summary: In 2025, Australian small business owners face a pivotal decision: Should you manage bookkeeping yourself or hire a professional team? This article compares the pros and cons of both options, provides statistics and trends relevant to Australian businesses, and highlights how Cosca can support your financial journey. Key topics include strategic growth, technology in accounting, and insights on when to consider professional services. 

What is DIY Bookkeeping? 

DIY bookkeeping involves managing your business finances on your own, using tools like Xero, MYOB, or QuickBooks. It lets you track income, expenses, and invoices while preparing reports for tax compliance. 

Benefits of DIY Bookkeeping: 
  • Cost-Effective: Avoiding professional fees makes this a budget-friendly option for sole traders or businesses with simple financials. Be mindful though of the cost of mistakes and forgone earnings on the time you’ve spent doing your books.  
  • Full Financial Control: Hands-on management gives you direct oversight of your financial data. 
Challenges of DIY Bookkeeping: 
  • Time-Consuming: Managing bookkeeping can detract from other business priorities. 
  • Prone to Errors: Mistakes in tax reporting or financial management can result in penalties. 
  • Limited Financial Insights: DIY bookkeeping focuses on compliance rather than strategic growth. 
  • Forgone Earnings: With the time you spend on your books – could you sell another piece of equipment or see another client?  

Who should consider DIY bookkeeping? 

DIY bookkeeping suits sole traders, freelancers, or micro-businesses with straightforward financials. However, as businesses grow, engaging a professional team becomes essential to manage complexity and compliance. 

What Does an Accountant Do for Small Businesses? 

  1. An accountant provides expert services beyond day-to-day bookkeeping. For example at Cosca the Bookkeeping and Accounting team assist with tax planning, financial strategy, cash flow management, and ensuring your business complies with Australian regulations and more.  

If you consider that you are doing a personal tax return at the end of every year wouldn’t you enjoy the peace of mind knowing your business and personal bookkeeper and accountant are on the same team? 

Key Accountant Services: 
  • Tax Planning: Accountants identify eligible deductions and ensure your business complies with ATO guidelines. 
  • Financial Analysis: They provide insights to help improve profitability and track financial health. 
  • Compliance Support: Accountants manage GST registration, BAS reporting, and payroll compliance. 
  • Strategic Growth Planning: They offer advice on scaling, investments, and preparing for business expansions. 

According to the Australian Taxation Office (ATO), businesses working with accountants reduce compliance errors and lower their audit risks, highlighting the value of professional financial guidance. 

How do I find the best accountant for my business? 

Start by researching accountants with experience in your industry and membership in professional bodies like CPA Australia or CA ANZ. Look for firms like Cosca, which specialise in small business accounting, tax planning and business advisory tailored to Australian businesses. 

DIY Bookkeeping vs Hiring an Accountant: A Comparison 

DIY Bookkeeping 

Best for: Sole traders or businesses with simple financial needs. 

  • Tools: Xero, MYOB, QuickBooks. 
  • Challenges: Time-consuming and lacks strategic insights. 
Hiring an Accountant 

Best for: Start-ups looking to set up their finances correctly from the beginning, growing businesses navigating increased complexity, or established companies managing employees, inventory, or multiple revenue streams. 

  • Services: Tax optimisation, compliance, financial strategy, and business advisory. 
  • Challenges: Higher upfront cost compared to DIY. 

Which approach is better for Australian businesses? 

While DIY bookkeeping might be sufficient for simple setups, hiring an accountant ensures accuracy, saves time, and provides strategic advice. Many businesses opt for a hybrid approach, using tools like Xero for daily tasks and consulting an accountant for high-level guidance. 

What is Business Advisory, and How Does It Differ from Accounting? 

Business advisory focuses on providing strategic advice to improve operations, optimise profitability, and plan for growth. Unlike bookkeeping, which tracks daily transactions, business advisory takes a proactive role in shaping your business’s future. 

How does business advisory help Australian businesses grow? 

Advisors analyse financial performance, identify opportunities, and create customised strategies. A study by CPA Australia found that businesses leveraging advisory services experience up to 20% higher profitability compared to those relying solely on compliance-based accounting. 

At Cosca, our business advisory services help businesses across Australia navigate challenges, maximise growth opportunities, and stay ahead of financial trends. 

How Do I Decide Between DIY Bookkeeping and Hiring an Accountant? 

Choose DIY Bookkeeping if: 
  • You have a simple financial structure (e.g., sole trader or freelancer). 
  • You’re comfortable using accounting software like Xero. 
  • You want to minimise costs and have time to manage finances yourself. 
Choose Hiring an Accountant if: 
  • Your business is growing and requires professional financial guidance. 
  • You’re managing employees, inventory, or multiple income streams. 
  • You want to optimise tax deductions, improve cash flow, or prepare for audits. 

Is a hybrid approach right for your business? 

A hybrid model—managing day-to-day bookkeeping yourself while engaging an accountant for BAS lodgements and tax planning—is an excellent middle ground for many Australian businesses. 

1. How do I choose between bookkeeping and accounting? 

 Bookkeeping handles daily transactions, while accounting provides financial analysis and strategic advice. Learn more in our blog “Bookkeeping vs Accounting – What’s the Difference?”


2. How much does an accountant cost in Australia? 

 Costs vary depending on the complexity of your needs but typically range from $1,000 to $15,000 per year for small to medium sized businesses. At Cosca we provide quotes upfront so there aren’t any surprises.  


3. How do I manage my taxes better in 2025? 

 Staying informed about ATO tax bracket changes and deductions is crucial. Read our blog “2024 Australian Tax Bracket Changes” for actionable advice. 


4. Can I start with DIY bookkeeping and switch to an accountant later? 

 Yes, many businesses begin with DIY bookkeeping and transition to professional services as they grow. 


5. How do I find the right accountant for my business? 

 Look for accountants experienced in your industry, with qualifications like CPA or CA membership. At Cosca, we specialise in helping Australian small businesses thrive with tailored accounting solutions. 


At Cosca, we offer a full range of services to support Australian businesses, including: 

  • Bookkeeping for Small Businesses: Simplifying financial management with cloud-based solutions. 
  • Business Advisory Services: Providing expert guidance to drive growth and profitability. 
  • Accounting and Tax Compliance: Ensuring compliance with ATO regulations and optimising your tax position. 

With a deep understanding of the unique challenges Australian businesses face, our team delivers customised solutions to help you succeed. 

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