1. Get organised. Get all your paperwork together.

Make sure that you claim all the deductions that you’re entitled to.

You don’t need to spend money on software. If you can just manage the accounting using an excel spreadsheet, then do that.

2. Deduction rule of thumb:

Ask yourself: If I wasn’t running a business would I be spending this money? If the answer is no, then it is a business expense.
If you have an accountant, write a list of things you are unsure about.

Tip: If you are having an overnight stay somewhere, you can claim food. Hotel and airfares, of course. Wifi in hotels.

Keep your receipts. Bank statements are not enough because they’re not itemised.

Tip: Xero – you can take photos of your receipts with your phone and store them in the program.

3.  Home office: You can claim 0.45c per hour for home office running costs.
If you’re renting a coworking space or an office you can claim all of that.

4. Beware of Personal Services Income

When we work for ourselves we offer a service – charging for our energy and our time. Make sure the tax office sees you as someone who is running a business, not as an employee. If you only have one client, talk to your accountant about this.

Q. Invoices under a certain value don’t need a receipt. Is this a myth?
A. If you are registered for GST. You can claim the GST without a receipt if it is under $82.50. This is where the idea comes from.
But, income tax law has no such rule. Every dollar you claim on your tax return must have a receipt.

5. Budget and plan for the next financial year.

See if you can save money. You want to make sure that your business is profitable.
Map out a plan for next year and set some goals.
What does it cost you to run your business?


  • Set up Xero
  • If you don’t have an accountant, see Diana at Balance Tax.
Category: Money

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