Key takeaways
- Keep business and personal finances separate.
- Reconcile at least monthly.
- Capture receipts as you go and set aside money for tax.
Most tax-time stress comes from records that have fallen behind. A few consistent habits throughout the year can make a significant difference.
1. Keep business and personal finances separate
A dedicated business bank account makes it far easier to identify business income and expenses, and reduces the time spent untangling mixed transactions.
2. Reconcile regularly
Reconciling your bank accounts at least monthly helps catch errors, missing invoices and duplicate payments while they're still easy to fix.
3. Capture receipts as you go
Most cloud accounting software lets you photograph and attach receipts on the spot. This avoids the end-of-quarter hunt for paperwork.
4. Set aside money for tax
Transferring GST collected and an estimate of income tax into a separate account means the funds are there when your BAS or tax bill falls due.
5. Review your reports
A quick monthly look at your profit and loss and outstanding invoices helps you spot trends early and make better decisions.
Official sources
General information only. This article doesn't take into account your personal circumstances and isn't a substitute for professional advice. Tax rules and thresholds change — check current details with the ATO or contact us for advice specific to you.
Published by
ANS Taxation & Accounting
Melbourne accounting and tax practice