Getting Started
Do You Need an Accountant as a Freelancer?
An honest look at when hiring an accountant is worth it, when it's not, what they cost, and what you can handle yourself as an Australian freelancer.
When you were employed, you probably did your own tax return. Log into myTax, check the pre-filled fields, claim a laptop and some work clothes, lodge it. Twenty minutes, done.
Freelancing adds layers. Business income, business expenses, quarterly BAS, super contributions, deductions you didn't know existed. At some point someone tells you to "get an accountant," and you start wondering whether that's real advice or something people repeat without thinking about it.
The answer depends on how complicated your situation is and how comfortable you are with the tax side. Some freelancers need an accountant. Plenty don't. And a lot of people pay for one every year when a one-off consultation would have been enough.
What an accountant does (and doesn't do)
A registered tax agent prepares and lodges your tax return. They can also handle your BAS, advise on business structure (ABN vs Pty Ltd), and deal with the ATO on your behalf if something goes wrong.
What they won't do: sort your receipts, reconcile your bank accounts, or set up your bookkeeping. That's on you (or a bookkeeper, which is a separate cost). An accountant who receives a pile of unsorted receipts in October will either charge you extra or do a worse job with your deductions. Probably both.
The better prepared you are when you walk in, the less it costs and the more useful the appointment becomes.
When you probably don't need one
Your situation is straightforward. Sole trader, not registered for GST, income under $75K, standard deductions (home office, phone, laptop, software). myTax handles this well. The ATO pre-fills your income from clients who report payments, and the deduction categories are clearly laid out. Our tax return guide walks through the process step by step.
You're comfortable with numbers. Not accountant-level comfortable. But comfortable enough to track your income and expenses in a spreadsheet or accounting tool, and confident enough to claim the deductions you're entitled to without second-guessing yourself.
Your income is consistent. If you have one or two regular clients and predictable monthly revenue, there's not much an accountant can tell you that you can't work out yourself. The math doesn't get complicated until the income structure does.
Tip
myTax is free and more capable than most people expect. The sole trader section walks you through business income and expenses step by step. If your situation is straightforward, try it yourself before paying someone.
When you probably should get one
Your first year freelancing. Even if you plan to do your own returns after that, getting professional help for year one is worth it. They'll make sure your structure is right, identify deductions you'd miss, and catch mistakes that compound over time. Think of it as a one-off investment in getting the foundations set up correctly.
You earn over $120K. At this income level, structure decisions start to matter. Whether you should operate through a Pty Ltd, how much super to contribute, and whether your deduction strategy is optimal. The savings from getting this right usually outweigh the accountant's fee. Our ABN vs Pty Ltd guide covers the structure decision, but an accountant can run the numbers for your specific situation.
You're registered for GST. Quarterly BAS adds complexity. If you're not confident with GST reporting, an accountant or BAS agent can lodge for you and catch errors before the ATO does. Getting BAS wrong triggers penalties ($313 per 28-day period). Our first BAS guide walks through the process, but if you're not comfortable after reading it, that's a sign to get help.
You have investment property or shares. Capital gains, negative gearing, depreciation schedules. These interact with your freelance income in ways that aren't always obvious. The recent budget changes to CGT and negative gearing make professional advice more relevant here.
You're approaching the super contribution cap. If you're making voluntary super contributions near the $30,000 concessional cap, or you're using carry-forward rules from previous years, getting the numbers wrong is expensive. Excess contributions get taxed at your full marginal rate plus interest. An accountant can check your cap space and make sure your contributions land correctly.
Something went wrong. If you've received a letter from the ATO, missed a BAS deadline, or realised you've been doing something incorrectly for multiple years, get professional help before you try to fix it yourself. A registered tax agent can negotiate penalty remissions and sort things out properly.
The middle ground
You don't have to pick a side. There are a few approaches that sit between "DIY everything" and "pay an accountant every year."
One-off structure review. Pay for a single consultation in your first year. Get your ABN or company set up correctly, understand your BAS and super obligations, confirm your deduction approach is sound. Then do your own returns going forward with that foundation. Cost: $200-400 for a consultation.
Accountant for the return, self-managed the rest. Track everything yourself during the year using Xero, MYOB, or a spreadsheet. Then hand the neat package to an accountant at tax time. Less work for them means lower cost for you, and they'll still catch things you missed.
DIY with a periodic check. Do your own return via myTax, but book an accountant review every two or three years to make sure you haven't drifted. Especially useful if your income has grown or your situation has changed since the last review.
What to look for in an accountant
Registered tax agent. Check the Tax Practitioners Board register. Anyone can call themselves a "tax consultant" or "financial adviser." Only registered agents can lodge returns on your behalf and give binding tax advice.
Upfront pricing. Ask what the fee will be before you commit. "It depends" is a reasonable first response, but you should get a written quote before they start working. If they won't give you a number, that's a red flag.
Small business experience. An accountant who mostly handles large corporations or PAYG employees won't know the freelancer-specific angles (home office methods, voluntary super strategies, mixed-income reporting). Ask whether they have sole trader and small business clients.
Someone who explains things. The best tax professionals don't just lodge your return and send an invoice. They tell you what they did and why, and they flag things you should be doing differently. You should leave the meeting understanding your tax position better than when you walked in.
What to prepare before you go
Walking in prepared saves you money and gets a better outcome. An accountant billing $250/hour who spends 30 minutes sorting your paperwork is $125 wasted.
If you use accounting software, give them read access directly. A clean Xero or MYOB file is worth more than a folder of PDFs.
Key takeaway
An accountant isn't mandatory for every freelancer. If your situation is straightforward and you're comfortable with numbers, myTax handles a sole trader return well. Where an accountant earns their fee is in year one (getting the setup right), at higher incomes (structure and strategy), and whenever something has gone wrong. For many freelancers, a one-off consultation at the start is worth more than paying someone annually to do something you could handle yourself.
Want the complete picture?
The Complete Guide to Freelancing in Australia covers this topic and 12 more chapters: tax, super, BAS, contracts, pricing, and more.
Free tools for Australian freelancers
See how much you could save with super, or find your minimum hourly rate.
Frequently asked questions
Tax agent vs accountant vs bookkeeper: what's the difference?
A bookkeeper records your transactions, reconciles your accounts, and keeps your financial records in order during the year. A tax agent (often called an accountant) prepares and lodges your tax return and provides tax advice. They're registered with the Tax Practitioners Board. A BAS agent is specifically registered to lodge BAS. Some practices offer all three services, but they're separate roles. Most freelancers do their own bookkeeping (or use software) and decide separately whether they need a tax agent for the return.
Can I switch from doing my own return to using an accountant?
At any point. You don't need to have used one from the start. Bring your prior year returns so they have context on what you've been claiming. If you've been doing your own returns and want a second opinion, a one-off review is a good way to test the relationship before committing to annual fees.
What if I made a mistake on a previous return?
You can amend returns going back several years. A tax agent can lodge amendments on your behalf. It's better to correct mistakes voluntarily than wait for the ATO to find them during an audit. Voluntary disclosures are treated more favourably, often with reduced or waived penalties.
Is the accountant's fee tax deductible?
Yes. The cost of having your tax return prepared by a registered tax agent is a deductible expense. You claim it in the following year's return (the year you actually paid the fee).
How do I find one who understands freelancers?
Ask in local freelancer networks or Facebook groups for recommendations. When you call, ask specifically whether they have sole trader clients in your industry. A good sign is if they ask about your business structure and income sources before quoting a fee, rather than just giving a flat rate for "individual returns."
Related articles
Want the complete picture?
The complete guide to freelancing in Australia. Tax, super, BAS, contracts, and pricing, explained step by step.