Are you in business – or just earning extra income? At Cotchy, we regularly hear from people who are selling products, offering services, or taking on freelance work. Many ask: “Do I need to register for GST?” or “Should I get a bookkeeper?”
What the ATO Considers a Business
According to the ATO, you’re generally considered in business if you:
- Intend to make a profit (not just cover costs)
- Operate regularly and consistently
- Have systems or processes in place (e.g. software, invoicing, ABN, website)
- Promote your offerings like a business would such as paid advertising
But even if you meet these criteria, that doesn’t automatically mean you need a bookkeeper.
BAS and Bookkeeping – What’s the Threshold?
To keep things simple:
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If your turnover is under $75,000/year:
You’re not required to register for GST or lodge BAS. In this case you don’t need monthly bookkeeping services.
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If you’re earning over $200,000/year:
You should already be GST-registered and actively lodging BAS. At this level, a bookkeeper becomes important for managing reconciliations, cash flow, reporting, and compliance.
Even if you think you are in business, the ATO’s turnover thresholds determine your reporting obligations.
Who Cotchy Works Best With
At Cotchy, we focus on supporting businesses that are established or scaling fast. Typically, our clients are:
- Earning over $200k+ annually or forecast this annual turnover in the first year.
- Already registered for ABN, GST, and PAYG
- Looking to scale with strong financial systems and compliance
We may not be the right fit if:
- Your turnover is under $75,000/year
- You’re still testing the waters or haven’t registered your business
- Your venture is more of a hobby or casual side income
If you’re in the early stages, it’s likely that you wouldn’t see the value in engaging a bookkeeper for monthly bookkeeping services just yet – and that’s completely okay. We encourage you to focus on growing your business first. Once you’re ready, we’ll be here to help take your finances to the next level.
Starting Up and Scaling Fast? Let’s Talk
If you’re launching a new venture with serious growth plans, we’d love to chat. Cotchy can help you get started the right way – from choosing the most effective business structure to registering with ASIC, and ensuring your financial systems are ready to scale.
The sooner your books are in order, the smoother your growth journey will be – and the easier it is to stay compliant, confident, and focused on building your business.
When You’re Ready to Level Up Your Business
So, are you in business? If you’re still under the BAS threshold or testing the waters – no pressure. Keep learning, stay compliant, and reach out when you’re ready to grow.