If you’re going to be earning more than $50,000 per year you’re required by Australian law to add 10% GST to all fees you charge. You must also fill out a Business Activity Statement (BAS), either quarterly or yearly. If you register for GST you can claim the GST you pay on materials and services you buy for your business. GST and BAS are very complicated and you need to find a good accountant to help you with all your business tax and financial business. Ask your friends or associates if they know a good one. You must keep good financial and business records. This is essential for running a successful small business, and you don’t want the ATO asking you for information you don’t have. There’s no getting around it. Even if you can’t stand it, you have to do it and you have to do it well. Your accountant will require you to provide details of your income and expenses. The more structured you make that information the cheaper your accountant’s bill will be.

The second reason for keeping records is for your own information. In order to run your business you need to know how much money is owed to you or how much you owe, who hasn’t paid and how much money you really have in the bank. Reconcile your bank statements against your financial records to make sure there are no discrepancies. If you have no bookkeeping experience it is a good idea to take a course. Always keep receipts for any business expenses. These can be claimed on your tax return. If you use a car keep a car logbook. This can be in actual book or on computer. Record in the logbook details of both private and business journeys. Your accountant can then decide whether to claim a percentage of expenses or a kilometre rate as a tax deduction. Record dates, times, to and from destinations, and odometer readings at the start and end of each journey.