Benefits of good business habits
Tax can be complicated and it's not the only thing to consider when running a business.
Findings from our small business random enquiry program show that the majority of small businesses are trying to report correctly, but now and then make mistakes.
Establishing good habits not only gives you the best chance of success but can also give you peace of mind and free up your time.
When we see businesses operating well, the common theme is getting the basics right.
- Using digital tools and business software can help you streamline processes, spend less time on administration and concentrate on areas that will improve your cash flow position.
- Keeping good records ensures you have the right information to meet your obligations, avoid mistakes, and better assess the financial health of your business.
- Getting advice from trusted sources, like your tax professional or the ATO website.
Adopting good business habits will help you:
- manage cash flow and meet your tax and super obligations
- accurately report business income in your tax return
- know which expenses you're entitled to claim, and correctly separate business and private expenses
- lodge and pay your business activity statements (BAS) correctly and on time
- know what you need to record and report for tax incentives your business receives
- understand the tax implications of your business decisions such as taking money out of your business for your own use
- manage your tax and super obligations and prove your claims.
Using digital tools
Using digital tools and business software can increase the efficiency of your business.
Digital tools can help:
- track and streamline processes
- manage customer data and employee records
- reduce overhead costs
- support business growth
- easily assess your financial position.
While some digital tools have an upfront or ongoing cost, you can generally claim a tax deduction for the cost of digital products used in running your business. You can only claim a deduction for the business portion of your expenses.
You can claim most operating expenses as a tax deduction in the year you incur them. You may also be able to claim an immediate deduction for depreciating assets under the simplified depreciation rules.
Online services
Most of your business reporting and transactions can be done through our online services.
Sole traders can use ATO online services to make payment arrangements and manage activity statements, PAYG instalments and accounts.
Small business owners can use Online services for business to prepare and lodge activity statements, annual reports, manage accounts and update registration details.
The ATO App allows individuals or sole traders to quickly access their personal tax and super information in one place. There are also several helpful features and tools you can use.
Good record keeping
Keeping accurate and complete records will help you meet your tax, super and employer obligations.
We have a range of free and helpful resources:
- Record keeping for business – how to stay on top of your tax, super and employer obligations
- Record keeping evaluation tool – a simple tool to help you assess how well you are keeping your business records
- Selling or closing your business – records – find out what you need to record when you sell or close your business.
- Essentials to strengthen your small business – Record keepingExternal Link – a self-paced course on record keeping.
- myDeductions – sole traders can use myDeductions, the record-keeping tool in the ATO app that makes it easier to keep records in one place.
Getting advice
Getting the right expertise and support will help you navigate change and uncertainty in your business lifecycle, such as:
- Supporting your small business – learning resources, tools and services.
- Tax support for small business – how to get help if you can't pay on time.
There are also organisations that provide information and services:
- Registered tax or BAS agentsExternal Link – check if your agent is registered or find a registered agent to help you with your tax and super affairs.
- Council of Small Business Organisations AustraliaExternal Link – represents the interests of small business.
- Support for businesses in AustraliaExternal Link – information, grants, services and support from across government to help your business succeed.
- Australian Small Business and Family Enterprise OmbudsmanExternal Link – helps small businesses and family enterprises grow and thrive, and provides the free My Business Health support tool.
- State Small Business Commissioners help small businesses deal with disputes in
Tools and resources to help you
We have a range of tools, resources and support services to make it easier for you to get your tax and super obligations right, such as:
- ATO Small business newsroom and newsletter – visit the small business newsroom for the latest updates about tax and super. You can also subscribe to our newsletter – 'Small business news' – to receive regular updates direct to your inbox.
- ATO CommunityExternal Link – get answers to your questions on our online community forum.
- Employee or contractor – find out if your worker is an employee or contractor.
- How to pay super – how to make super guarantee contributions for your employees.
- How much super to pay – work out how much super guarantee you must pay.
- Superannuation guarantee charge statement and calculator tool – work out how much super you need to pay if you haven't paid your super contributions on time.
- Calculators and tools – to help you run your business and save you time.
- Tax Time toolkit for small business – practical information and fact sheets to help your business throughout the year.
- Income and deductions for business – income you need to declare and deductions you can claim.
- Taking on an employee checklist – what to consider when you take on an employee.
- ABN LookupExternal Link – check that businesses you deal with have an active ABN and whether they're registered for GST.
- Contact us – for enquiries and options for managing your tax and super.
- External review of our decision – further information on the external court or tribunal avenues for appealing our actions or decisions.
Learning resources
See our range of learning resources to help you develop the right habits for running your business:
- Essentials to strengthen your small businessExternal Link – our online learning platform offers short courses to help you develop the skills and knowledge for your small business to thrive.
- atoTVExternal Link – watch a wide range of short videos about tax and super.
- PAYG withholding – find out if you need to register for PAYG withholding, what your withholding obligations are, how much tax to withhold, and more.
- PAYG instalments – find out if you can voluntarily enter PAYG instalments and reduce the tax you may need to pay at the end of the year.
- Super for employers – learn everything you need to know about paying super for your workers.
- Cash Flow KitExternal Link – a coaching resource to help guide conversations with your tax or business adviser about developing sustainable cash flow strategies.
- Small business showcaseExternal Link – resources on workplace laws and information for small business owners.
- Business.gov.auExternal Link – the government's one-stop shop, including how to plan, start and run your business, and support for businesses impacted by natural disasters.