DIY bookkeeping vs paying an accountant: where the break-even point is
How to work out whether doing your own books and BAS saves money once your time, error risk and clean-up fees are counted, with a break-even formula and worked examples.
Doing your own bookkeeping saves money when the hours you spend are worth less than the fees you avoid, and your books are accurate enough that the accountant does not bill you to fix them. Break-even is simple to work out: divide the yearly fee you would avoid by the hours the job takes you. If the result is above what your time is worth, DIY pays; if it is below, outsourcing pays. Error risk changes the answer: a few GST coding mistakes or a late BAS can wipe out a year of savings. Most small businesses end up with a split, doing routine coding themselves and paying a registered agent for BAS review and the tax return.
This guide is part of the checklist for choosing an accountant. Figures are illustrative.
The break-even formula
Break-even hourly value = fee avoided per year ÷ your hours per year
- Fee avoided: what a bookkeeper or agent would charge for the work you take on, minus any extra software cost you need for DIY.
- Your hours: realistic time including learning, fixing mistakes and the quarterly scramble.
Compare the result with the value of your time: what you could bill a client, what you pay staff to cover you, or simply what an evening is worth to you.
Worked example 1: a consultant
An illustrative IT consultant, sole trader, 15 transactions a month, quarterly BAS.
- A bookkeeper would charge 1 hour a month at $65 = $780 a year; a BAS agent would charge $120 per BAS = $480 a year.
- Fee avoided: $1,260.
- DIY time: 30 minutes a month for coding plus 1 hour per BAS = 10 hours a year.
- Break-even: $1,260 ÷ 10 = $126 an hour.
If the consultant bills $150 an hour and has spare billable work, outsourcing saves money. If the hours would otherwise be idle, DIY saves $1,260 in cash.
Worked example 2: a retail shop
An illustrative gift shop with 400 transactions a month, two casual staff, inventory.
- Bookkeeping: 6 hours a month × $65 = $4,680; BAS and payroll checks 4 × 2.5 hours × $110 = $1,100.
- Fee avoided: $5,780.
- DIY time for the owner, who is new to software: 10 hours a month plus 4 hours per BAS = 136 hours a year.
- Break-even: $5,780 ÷ 136 ≈ $42 an hour.
Here the owner's time is likely worth more than $42 an hour in the shop. In addition, payroll and super under Payday Super create compliance risk. Outsourcing at least payroll and BAS makes sense.
The hidden cost: clean-up and errors
Add an error allowance to the DIY column.
| Risk | How it costs you |
|---|---|
| Wrong GST codes | Overpaid or underpaid GST; amendment work; possible shortfall penalties |
| Late BAS | Failure to lodge on time penalty plus non-deductible interest on late payment |
| Unreconciled accounts | Accountant bills year-end clean-up at a senior rate |
| Missed deductions | Paying more tax than needed |
| Payroll errors | Underpaid super, superannuation guarantee charge, award underpayments |
If a firm bills 8 hours of clean-up at $180 at year end, that is $1,440, more than the fee avoided in example 1. See ATO penalties and interest and common accounting mistakes.
A practical split
| Task | DIY suits most owners | Usually outsource |
|---|---|---|
| Issuing invoices and chasing debtors | Yes | |
| Reconciling bank feeds weekly | Yes, with rules | If volume is high |
| Coding unusual transactions | Ask your agent | |
| BAS preparation | Possible if simple | If payroll, fuel tax credits or many transactions |
| Payroll and super | Usually, unless very simple | |
| Year-end adjustments and tax return | Yes, tax agent | |
| Tax planning | Yes, tax agent |
The bookkeeper vs BAS agent vs tax agent guide explains who may do which part for a fee.
Making DIY cheaper and safer
- Use software with bank feeds; set rules only for transactions that are always the same.
- Reconcile weekly, not quarterly.
- Ask your agent to review your chart of accounts and GST codes once, at the start.
- Keep receipts digitally the same day.
- Book a short mid-year review rather than a big year-end fix.
If you are considering software, run the numbers in the automation payback calculator and see the automation worked example. For the fees you will still pay, estimate a range with the fee estimator.
Signs DIY has stopped working
- You lodge BAS late, or only after reminders.
- Reconciliation is months behind.
- You are unsure whether you are paying super correctly each pay cycle.
- Your accountant's year-end fee keeps rising because of clean-up.
- You have started paying people as contractors without checking whether they are employees.
Frequently asked questions
Can I lodge my own BAS?
Yes, through Online services for business or SBR-enabled software. You do not need to be registered with the TPB to lodge your own BAS.
Is it worth learning bookkeeping?
For most owners, understanding enough to read a profit and loss report and reconcile a bank account is worth it, even if someone else does the rest.
Will the accountant charge less if I do the books?
Only if your books are accurate. Ask the firm what the fee would be if you deliver reconciled books by a set date.
What about my own tax return?
You can lodge it yourself, but a business schedule, asset write-offs and vehicle claims are where errors are common. Many owners keep the return with a tax agent.
Sources and where to check
- Australian Taxation Office — lodging BAS yourself, record keeping, GST coding guidance
- business.gov.au — bookkeeping and financial management basics
- Tax Practitioners Board — registered BAS and tax agents
- Fair Work Ombudsman — pay rates and employee vs contractor guidance
