Small Business Start Up Finances Guide

Step 10 – Put All Income and Eligible expenses Through the Bank Account

This is REALLY important because what it does is to put all business expenses in one place which makes life really easy later on.

Regarding any expenses that were incurred before you opened the account, take each one out individually and title the entry showing the expense, eg ‘Mobile phone’, ‘petrol’ etc.

Of course, its like reimbursing yourself but the benefit of this is that it is going through the business account and providing a permanent record.

The Tax Office says that in order for you to claim these expenses as tax deductions, you must keep appropriate records:
http://www.ato.gov.au/Business/Deductions-for-business/Keeping-good-records/?anchor=P23_3078#P23_3078

Back to Full List