The ABCs Of Sole Trader Tax Compliance

Too many sole traders run their businesses into the ground through poor tax compliance. They don’t do their bookkeeping regularly, complete their tax returns and BAS late, and land unexpected debts come tax time. But tax compliance can be easy… if you know how to do it right. Here we’re going to show you how you can earn money and succeed in business as a sole trader while keeping everything to the letter of the law.

Records

A successful businessman takes perfect records. That means collecting receipts, doing your bookkeeping regularly and keeping these records safe and secure for five years. You also need do your BAS regularly and on time to avoid penalties which can quickly add up and contribute to your debts. Sound like hard work? You’re right. This is the job of a full-time accountant. As a sole trader, you needn’t do all this yourself, nor do you have to fork out hefty fees for a traditional accountant. Choose an affordable tool like Just Done to do it all for you.

To be tax compliant you need to keep the following records:

• Business transactions
• Expenses
• Bank records: statements and loans
• Wages, allowances and super for yourself and your contractors

Tax

There’s a secret to managing your compliance, avoiding surprises at tax time and the debts that come with late repayment. Few people know that they can pay their tax to the ATO at absolutely any time. Pay a percentage of your income to the ATO weekly, and you’ll always be happy in regards to compliance. Don’t worry about inaccuracies, they’ll be balanced out when you do your BAS quarterly.

To be tax compliant you need to:

• Pay yourself a weekly wage from your income
• Pay tax weekly
• Pay a percentage into your ATO running account
• Balance your finances with BAS

If you’re still feeling a little lost when it comes to all things tax, why not consider signing up to Just Done. Find out more today.