Organise your finances

When starting a business and organising your business finances, there are some things you’ll need to consider.

A business bank account

If you operate as a sole trader you aren’t legally required to have a separate bank account for your business, you can use your personal account. However, for easy tracking of business income and expenses, you may consider opening a separate account for your business.

Have a look at the Australian Taxation Offices (ATO) Separate business and personal expenses information on how to use a single bank account for both your personal and business finances.

If your business operates as a partnership, company or trust then you must have a separate business bank account for tax purposes.

Set-up a bookkeeping system

There are a large of number of manual and electronic bookkeeping products available that could suit your business needs. If you’ve employed a financial professional, have a chat to them about the products that will best integrate with their systems.

Prepare a budget

Preparing a budget outlining your forecasted income and expenses can help you better manage your cash flow when starting and running your business.

Payment types and invoicing templates

When starting your business, you'll need to decide on the payment terms and payment types you will accept from your customers. You may also need to set up an invoicing template and receipts that you will give customers when selling goods and services.

It’s important to send correctly formatted invoices for the goods and services you provide. Make sure to include a clear due date and follow up on payments that fall behind. If your business provides subscriptions or memberships, you may wish to consider setting up an automatic payment system or direct debit to save yourself the hassle of having to chase payments.

Manage your cash flow

Keep track of the money that’s coming in and going out of your business. An easy way to do this is to use a cash flow statement. A cash flow statement will allow you track your income and plan your expenses, so that you can plan ahead and feel comfortable in the knowledge that you’ll have the money to pay your bills.

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