Track your business expenses for your new business or side hustle

One of the questions I often get asked by people who, as a sole trader, have just set up a new ABN for their new business or side hustle, is, what is the best way to track your business expenses?

And I have a really simple and cheap solution.

Just open up a new bank account (and possibly new credit card) in your name, trading as your business name.  Deposit all the income from your new business into this account.  Make sure you pay all your business expenses from a debit card on this account, or the new credit card (not your personal credit card).

That way you can use your bank statements to track your business expenses (and your business income).   This way in October 2022 when you are preparing your tax return, you don’t have to remember what you spent on the business over a year ago in August 2021.

Then once your business is more established, and there is more money flowing, you can start to look at other options such as Rounded, QuikBooks, Xero or Myob.

So, a simple and cheap way to track your business expenses (and your business income) when you set up your sole trader or side hustle ABN is to just open a new bank account.

And this separate bank account helps you provide evidence for grants such as the NSW Govt’s Micro Business Grant.

A Bonus tip for newbies to the business world!

Once you start making money, you will want to transfer some money to your personal account to cover your living expenses.

But make sure you leave behind a percentage to cover the tax you will need to pay and some money for your super.  Depending on how much income you will earn, this could range from 20% to 30%.

This way once the tax bill arrives, and yes it will arrive one day, you actually have the cash to pay this.

Want some free Business Advice?

If your business is in NSW, you may be able to access free and subsidised business advice to help you start, run, adapt or grow your business under the NSW Government’s Business Connect program.

And as an accredited advisor under this program, I can help your start-up or business with:

• Business Performance Analysis
• Cashflow forecasting
• Tactical and strategic business planning
• Product and service profitability
• Understanding what grants may be available for you.

Simply click here to book a session with me.

Please note the team at Realise Business (a not for profit business) will need some information to confirm you are eligible for this free service, prior to confirming your booking.

Contact Wayne Wanders for your FREE Business Survival Session

To ensure I help your business specifically, the best approach I have found is to have an obligation free session with you.  In this session we will review your current business in a factual and objective manner, to better understand the challenges that you face.  And this session does not need to be face to face.

At the end of this session, you will have multiple ideas on how your business can survive and thrive in these uncertain times.

Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.

To get help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times, simply use the contact form on the left to email Wayne or call him on 0412 227 052.

Let Wayne Wanders, a fully qualified and experienced CFO, help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times.

Wayne Wanders, A Real CFO

wayne@aRealCFO.com.au