How to hire your first employee at an accounting firm
A playbook for the owner of a one-person firm deciding on a first hire, from the full cost and break-even to the role, the pay range and the first 90 days. It sets out the employment basics in Australia, the UK and the US as at November 2026, from the Fair Work Ombudsman, ATO, HMRC, The Pensions Regulator, IRS and USCIS.
Step 1 of a playbook: How to hire your first employee at an accounting firm
Learning check · before you start
What do you already have in place?
A few quick questions, so you can skip the steps you have already done. Each one has a line explaining what it means. Not sure, or never heard of it? Choose “Not yet / not sure”: that is where most firms start, and the playbook walks you through it.
This playbook is for the owner of a one-person firm who is turning work away, or working nights to keep up. By the end you will know whether you can carry the cost and whether the work should go to an employee at all, and you will have a role scorecard, a pay range, the employment basics for your country and a 90-day plan. Steps 1 to 4 take about a week of evenings; Step 5 takes a few hours before day one. Rules are as at November 2026, for Australia, the UK and the US.
Step 1: Check you can carry the cost
Your task work out the full yearly cost of an employee, how much extra revenue (or how many extra clients) would cover it, and how many months you could carry any shortfall from savings.
You said you already have this covered. Skim this step, or skip to the next.
Most owners compare the salary with the work they turn away and stop there. Do the sum properly.
- The full cost of employment. Salary plus the employer’s super or pension contribution, payroll taxes and insurance where they apply, paid leave, software seats, equipment, training, and the hours you will spend recruiting and supervising.
- The capacity it frees. The hours a week the new person takes off you, and what you will do with them. Hours that go into new clients or advisory work earn money; hours that go into catching your breath do not pay the wage.
- The break-even. The extra revenue, or the number of extra clients at your average fee, that covers the full cost. Does that revenue already exist (the work you turn away) or does it have to be found?
Our first hire affordability calculator puts this on one sheet. If break-even depends on clients you do not have yet, decide how many months you can carry the gap from savings before you start.
Done when: you have a full annual cost, a break-even in revenue and clients, and a number of months you can carry the gap.
Learning check
What would you do? Pick one; every answer is explained.
Step 2: Decide whether to hire, outsource or offshore
Your task write down which work should go to an employee, which to an outside provider, and why.
You said you already have this covered. Skim this step, or skip to the next.
An employee is one of three ways to get capacity.
- Hire when the work needs judgment, client contact or knowledge of how your firm works, and you can keep someone busy most of the week.
- Outsource when the work is well defined, repeats and can be checked, or the volume is seasonal.
- Offshore when the volume is steady enough to train a remote team, and your clients and engagement letters allow their data to leave the country.
Whichever you choose, the obligations follow the work. You stay responsible for the advice, the lodgment, client confidentiality and checking what comes back. Outsourcing moves the hours, not the accountability. Our guide to accounting outsourcing covers the data, consent and review questions.
Done when: you have written down which work goes to an employee, which goes to a provider, and why.
Learning check
What would you do? Pick one; every answer is explained.
Step 3: Design the role around outcomes, and name the reviewer
Your task write three to five results the new person will be responsible for within a year, name who will review their work, and decide how often you will review it.
You said you already have this covered. Skim this step, or skip to the next.
“Graduate accountant” tells a candidate nothing about what a good month looks like. Write the role as three to five outcomes the person will own within a year, such as “Prepares individual returns to review standard for [number] clients a month” or “Runs month-end for [number] bookkeeping clients and flags anomalies by the 10th”.
Then name the reviewer. In a firm of one that is you, and your review time is the hidden cost in Step 1. Decide when you will review (daily for the first month, then weekly) and how you will give feedback.
Our first hire role scorecard holds the outcomes, the reviewer, the skills to test at interview and the 90-day plan from Step 6.
Done when: the scorecard has outcomes, a reviewer and a review rhythm, and you would show it to a candidate.
Learning check
What would you do? Pick one; every answer is explained.
Step 4: Set the pay range, then advertise
Your task set a pay range using at least two named salary sources, then advertise the role in at least two places.
You said you already have this covered. Skim this step, or skip to the next.
Set the range before you write the ad, from at least two sources: one official source for the shape of the market and one survey that matches the role and city. Our guide to how much accountants make shows figures by country and level, each sourced and dated, from the Bureau of Labor Statistics, the Office for National Statistics, Jobs and Skills Australia, CA ANZ and Robert Half. Check whether each figure includes super or pension, and how old it is. Then set your own range from your budget in Step 1, the role in Step 3 and your local market.
Check pay transparency rules where you hire: that guide notes several US states, including California, Colorado, New York and Washington, require pay ranges in job ads.
Advertise where accountants look: your own network first, then university careers services, professional body job boards, general job sites and The Firm’s board, where you can post a job to readers in practice. Put the scorecard outcomes in the ad.
Done when: you have a range with two named sources behind it, and the ad is live in at least two places.
Learning check
What would you do? Pick one; every answer is explained.
Step 5: Get the employment basics right for your country
Your task complete the employer registrations for your country, have the first-day forms ready, and make sure payroll can pay and report on the first payday.
You said you already have this covered. Skim this step, or skip to the next.
These are the registrations and forms a first employer usually needs, checked against official guidance as at November 2026. They are not the whole list: state and local rules add more.
Australia
- Award coverageThe Fair Work Ombudsman says accountants working for an accounting firm are not covered by an award; they get the national minimum wage and the National Employment Standards. Clerical staff in an accounting firm are covered by the Clerks Award, and a bookkeeper may be too if the work is mainly clerical.
- Fair Work Information StatementGive it to every new employee before, or as soon as possible after, they start. Casuals also get the Casual Employment Information Statement.
- SuperThe ATO’s super guarantee rate has been 12% since 1 July 2025. Under Payday Super, from 1 July 2026, super is paid with each pay run and must reach the fund within seven business days, with some exceptions for new employees.
- Single Touch PayrollReport each pay run to the ATO on or before payday. Keep the employee’s tax file number declaration on your own records.
United Kingdom
- PAYERegister as an employer with HMRC before the first payday, and no more than two months before you start paying people.
- Right to workCheck it before you employ someone. GOV.UK warns of a civil penalty if you employ an illegal worker without a correct check.
- Workplace pensionAutomatic enrolment duties start with your first employee. Staff aged 22 to State Pension age earning at least £10,000 a year must be enrolled; The Pensions Regulator’s online tool sets out what to do and when.
United States
- Form W-4The employee completes it so you withhold the correct federal income tax. Many states have their own form too.
- Form I-9USCIS says the employee completes Section 1 by the first day of employment, and you complete Section 2 within three business days after it.
- New-hire reportingReport new hires to the state where the employee works within 20 days of hire under federal law; some states set a shorter deadline.
Payroll software handles most of the reporting; Employment Hero Payroll in our directory is one example. The sources of truth are the Fair Work Ombudsman and the ATO, HMRC and The Pensions Regulator, and the IRS, USCIS and your state agencies. This is general information, not legal or employment advice; have an employment lawyer or your professional body check the contract.
Done when: every registration is done, the forms are ready for day one, and payroll can pay and report on the first payday.
Learning check
What would you do? Pick one; every answer is explained.
Step 6: Plan the first 90 days
Your task write a 90-day plan before the new person starts, book the 30, 60 and 90-day reviews in both your diaries, and give them the plan on their first morning.
You said you already have this covered. Skim this step, or skip to the next.
Write the plan before day one and give it to the new starter on their first morning.
- OnboardingLogins ready before they arrive, a written guide to how your firm runs a job, and client notes.
- Review cadenceA short daily check-in for two weeks, then a weekly one-to-one, with formal reviews at 30, 60 and 90 days against the scorecard.
- OwnershipEach 30 days hands over more, so by day 90 they own real work and you only review it.
90-day plan outline. Replace the brackets with your own work and clients.
- Before day 1. Contract signed, registrations done, logins and equipment ready, first week’s work chosen. [Reviewer] blocks review time.
- Days 1 to 30: learn the firm. Shadow [owner] on [number] jobs. Prepare [simple job type] for [number] clients, every one reviewed. Learn the [practice management system] workflow. Day-30 review.
- Days 31 to 60: own the routine. Prepare [job type] for [number] clients to review standard. Answer routine client emails on [topics], copying [reviewer]. Day-60 review: accuracy, speed, training gaps.
- Days 61 to 90: own a client group. Run [number] clients end to end, reviewed before lodgment. Sit in on one client meeting. Day-90 review: confirm the role, set goals for months four to twelve.
- Notes. Line up any probation period with the day-90 review, and write down feedback at every review.
Whatever runs your jobs (Kloud Connect, FYI, AccountKit, Xero Practice Manager or a spreadsheet), give the new starter a view of their own work and deadlines from day one.
Done when: the plan is written, the three reviews are in both diaries, and the starter has seen it.
Learning check
What would you do? Pick one; every answer is explained.
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Where we could be wrong
The assumption most likely to be wrong is that your first hire should be an accountant. For some firms the better first hire is an administrator who takes scheduling, document chasing and invoicing off the owner, and that changes the award position in Australia, the pay range and the scorecard. We checked national rules only: US state rules, Australian payroll tax and workers’ compensation, and Western Australia’s state award system are not covered. Award coverage turns on the duties of the role, so a mixed bookkeeping and admin role needs checking with the Fair Work Ombudsman.
Frequently asked questions
Should my first hire be a graduate or someone experienced?
A graduate costs less but needs more review time, which is the scarce thing in a one-person firm. If you cannot review daily for the first month, an experienced hire may be cheaper overall.
Can I hire part-time first?
Yes. It lowers the cost and the risk, but someone in two days a week takes longer to learn the firm, so stretch the 90-day plan to match.
Is a contractor safer than an employee?
Only if they really are a contractor. Australia, the UK and the US each test whether someone is an employee in substance, and the label does not decide it. If you control their hours and methods, plan on employing them.
How long should hiring take?
Plan for weeks between the ad and the start date, longer if the candidate has notice to give. Start before tax season, not during it.
What if it does not work out?
The 30, 60 and 90-day reviews surface problems early and in writing. Follow your contract and the rules for your country, and take advice before ending an employment.
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