Home – New Forums Starting your journey Getting an ABN yourself?

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  • #990479
    Lorinda Moxham
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    Hi All,
    I am starting a biz and have enlisted a trusty accountant who is also setting up my ACN.
    They have quoted me about AUD500 to get the ABN on my behalf however it looks like I can do this myself at no cost. Is this something that is easy to do on your own or is it better to leave it to the experienced?

    Cheers

    #1177126
    bb1
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    If you are happy to pay them about $50.00 a minute for them to setup your ABN, go for it.

    But in reality it is a simple process,

    #1177127
    NickKaro
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    Hi Lorinda

    It is reasonably easy to obtain an ABN yourself, however I have a number of clients that prefer the comfort of having someone experienced go through the process. The fee stated is around 5-10 times more than what it should cost though.

    #1177128
    Alan Maddick
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    Hi Lorinda,

    Just a quick clarification – in your post you say and ABN and an ACN an ACN is an Australian Comany Number and means you woudl be registering a company – this is different than just getting an ABN

    If you are just getting an ABN yes $500 is a bit pricey – if a company it is very cheap.

    Either way i think using an Accountant is well worth while but then I am a bit biased ;)

    #1177129
    quickbas
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    Getting an ABN is simply a matter of filling out a form – your can request it for free from the Australian Business register.

    A $500 fee for just this is quite excessive. If there is a company set-up to do as well, then that usually runs into the $thousands.

    #1177130
    Lorinda Moxham
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    Thanks for all your responses

    #1177131
    bb1
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    SmallBusinessWorks, post: 206289 wrote:
    Hi Lorinda,

    Just a quick clarification – in your post you say and ABN and an ACN an ACN is an Australian Comany Number and means you woudl be registering a company – this is different than just getting an ABN

    If you are just getting an ABN yes $500 is a bit pricey – if a company it is very cheap.

    Either way i think using an Accountant is well worth while but then I am a bit biased ;)

    Alan, The request is quiet clear “They have quoted me about AUD500 to get the ABN on my behalf”. Thats a lot of dollars for a 10 minute job.

    Why do you beleive an accountant can get an ABN any better then we can. If you look at the questions, there is nothing difficult?

    What do you believe is a fair price for an accountant to get an ABN for you?

    #1177132
    NickKaro
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    It really depends on the person – I have had clients who really needed the assistance. The fee should be nominal though.

    #1177133
    Alan Maddick
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    bb1, post: 206334 wrote:
    Why do you beleive an accountant can get an ABN any better then we can. If you look at the questions, there is nothing difficult?

    Hi seeing as you are directly addressing me when I was just trying to clarify let me give you an example of why an Accountant can get an ABN better then some clients;

    Lets say a client goes into business for themselves and does as you say and registers an ABN themselves, during the process the government website asks about GST but the client either does not understand GST or perhaps finds the questions confusing (the website is quite confusing and seems to deliberately lead you away from registering for GST) so the person does not register for GST.

    They start their business and it is quite successful with sales in excess of $400,000 in their first year in business, excitedly they go and see an Accountant for the first time expecting congratulations for their great year a few months after end of the first year – lets say 6 months after the first year. The Accountant then has to break the news that the client now owes the ATO $60,000 in GST as despite not registering for GST they are well over the threshold and so have to pay GST. Of course they have not charged their clients GST and not collected it during the preceeding 18months.

    You may say or think “that would never happen” or similar but this is a real client story from my practice and this happens EVERY YEAR in my practice (someone registers their own ABN and it costs them a lot of money due to their own innocent mistake)

    I have not even discussed the issues with sole trader vs partnership vs company etc that should also be dealt with at the ABN registration stage. I am all for clients doing as much of the financial work of their business as possible and empowering them to know and understand their financials and tax situation but paying an Accountant a few hundred dollars to assist you in registering your business properly (and the associated advice that goes with it) can be worth it many many times over.

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