Data from SMB Navigator Report 2025 shows that hitting $100,000 in annual revenue marks a major inflection point in external accountant engagement. Not only income, but accounting support is also strongly correlated with organisational complexity, with trusts and listed companies among the most likely to rely on external firms.
This story breaks down how business structure and revenue shape demand for accounting services.
Key stats you need to know
- Accountant engagement jumps from 71% to 85% once a business surpasses $100,000 in annual revenue.
- 95% of trusts and 85% of publicly traded companies work with an external accounting firm.
- Sole traders remain the least likely to engage an accountant, with only 59% doing so in 2025.
Revenue growth drives demand for accounting support
- Businesses earning under $50,000 show the lowest engagement rates, at just 49% in 2025. Engagement increases to 71% for businesses with $50,001 to $100,000 in revenue.
- The steepest jump occurs at the $100,000 threshold, where engagement rises 14 percentage points.
- Businesses earning over $1 million report the highest engagement, at 87% in 2025.
Once revenue exceeds $100,000, the likelihood of working with an accountant reaches 85%. It appears to prompt a shift in financial management needs, possibly tied to more complex reporting, regulatory compliance or strategic planning requirements. Notably, across the different revenues, an increase in engagement from the previous year is observed.
“We consistently see $100K revenue as a tipping point where DIY accounting gives way to professional support. It’s a practical threshold, not just a psychological one,” said Michael Johnson, Director at Agile Market Intelligence.
Complex structures drive near-universal engagement
- Trusts report the highest level of engagement, with 95% using an accountant in 2025. Publicly traded companies also show strong demand, with 85% engagement.
- Privately held companies and partnerships maintain high engagement rates at 78% and 76%, respectively.
- Sole traders remain the outlier, with only 59% working with an accountant.
Entities with fiduciary obligations or regulatory oversight are far more likely to seek ongoing accounting support, underscoring the role of governance in shaping demand.
“Business structure is a strong predictor of accounting needs. Trusts and listed entities have too much at stake not to get expert advice,” said Michael Johnson.
Sole traders remain the largest under-served segment
- Just 59% of sole traders used an external accountant in 2025, despite a slight increase from 54% in 2024.
- This compares to 76% of partnerships and 78% of privately held companies in 2025.
- The 5-point year-on-year gain suggests slow adoption rather than rapid change. This group likely represents a major opportunity for accounting firms targeting growth.
Sole traders are the only group with less than 60% engagement. While overall accountant engagement rises with revenue and complexity, sole traders continue to be the least engaged organisation type. Lower perceived need, cost concerns or reliance on informal solutions may be contributing factors.
“Sole traders are a high-potential segment, but they’re harder to reach. It takes education, not just marketing, to shift behaviours in this group,” said Michael Johnson.
About the research
The SMB Navigator Report 2025 is based on quantitative research conducted by Agile Market Intelligence between December 2024 and January 2025 and was commissioned by Intuit QuickBooks. It includes responses from 506 Australian small businesses and 404 practising accountants. The business sample has been weighted to reflect the national distribution of business size and annual revenue, based on data from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO).
You can download the report here.
