Calculating the cost of your financial admin
How much is all that admin really costing you?
Most sole traders don't think about the full cost of sorting out their financial admin. Our financial admin calculator can help.
A lot of people assume the cost is simply the price of hiring an accountant, but there's a lot more to it than that. Here are the key areas of cost when it comes to your financial admin.
The main costs of financial admin
Accountant's fees
A traditional accountant or bookkeeper will usually cost upwards of $2,000 per year for income tax and GST calculations and lodgements, and making the payments is still down to you.
Accounting software
If you work with a traditional accountant, paid accounting software is all but mandatory. Subscriptions commonly run up to $50 a month and beyond.
Spreadsheets & office software
Sometimes you'll need a licence for spreadsheets or other tools just to track your income and expenses through the year.
Invoicing & expense apps
Third-party apps for sending invoices or storing receipts almost always carry their own monthly or annual fee.
Your own time
This is the big one. Manual bank payments, reconciling software, chasing receipts and filing returns burn hours every month, time far better spent with clients, friends or family.
“But won't the interest on my tax savings offset all that?”
Not really. With the ATO and Medicare expecting payments every couple of months, the days of storing tax funds for long stretches are gone, so the ‘bonus interest’ you might earn is minimal. The calculator below lets you add a generous interest rate so you can see for yourself just how small that offset is.
Ready to find out how much your admin is costing you? Use the calculator below to get the REAL totals 👇
Your details
Adjust the figures to match your situation. Everything updates instantly.
What you pay for
The cost of your time
Interest offset
The real cost of your financial admin
$7,520/ year
From $100/mo, capped at $160+GST/mo. Everything included.
You could save about $6,320 a year plus all those hours back, by letting Ledgix handle the lot.
Estimates only. Ledgix's fee is a deductible business expense.
Once you've seen the true cost of your financial admin, it can be hard to forget. That's exactly why we built Ledgix, to take care of all the financial admin for sole traders, so they can spend their time and money on far more useful things.
If you'd like to see how Ledgix could save you money, hassle and time, get started below.
DISCLAIMER:The information on this page is for general educational purposes only. It doesn't cover all situations and circumstances, and shouldn't be taken as direct tax or financial advice. If you're looking for help specific to your circumstances, join Ledgix and our team can assist you based on your business needs.