Tax time can come around quickly when you’re busy running a growing business, but a little preparation now can make a big difference later.

There are things you can do now to get ready and avoid last-minute mistakes.

Declare all business income

Missed income is a common issue at tax time. Make sure you declare all your business income, including cash payments and non-monetary benefits like goods or services you receive for your work.

Know your losses

Knowing whether your losses are business losses or non-commercial losses can change how you report and carry them forward at tax time.

Separate business from personal expenses

If you’ve used business money for personal expenses, keep good records. Separating business and personal spending now can help prevent issues later.

Nominate your tax professional

If you’re using a tax professional, nominate them in Online services for business so they can access your information and act on your behalf without delays.

Claiming deductions

When claiming deductions, remember these 3 golden rules:

1. The expense must relate to your business, and not private use.

2. If the expense is for a mix of business and private use, you can only claim the business portion.

3. You need records or receipts to prove it.

Remember, if you’ve incurred general interest charge (GIC) or shortfall interest charge (SIC) on or after 1 July 2025, you can’t claim these amounts as an income tax deduction in your 2025–26 or later tax returns.

Cash or accruals: choose the right method

All income you earn from running your small business will be assessable for tax purposes. The method you use to account for income affects what you report. For:

• cash basis, report income when you receive the payment, even if the work was done earlier
• accruals basis, report income when you earn it, even if you haven’t been paid yet.

Generally, you should only report on a cash basis if your business income is principally a result of your own labour.

Don’t miss out on deductions and concessions

Check if you’re eligible for any deductions or concessions such as:

• simplified depreciation rules
• immediate deductions for pre-paid expenses
• depreciation for instant asset write-off.

Tools and support for tax time

The ATO has a range of tools and resources, including their 2026 Tax Time toolkit for small business to help you get it right this tax time.

Contact Indigo Financial on (08) 8212 8585 if you need help with understanding your Income Tax obligations or any of your accounting, taxation and business development needs.