Question about managing income and tax implications of being a contractor with my income coming from one business. What is the best method/software to track income and how much to put aside for tax?
Good luck with the new business.
Keeping track of your income and expenses would be easier if you used one bank account for all your business transactions. The bank statements will then serve as primary documentation and then there are a number of software programs that would be available to you. Xero is one. You can have a 30 day free trial of Xero and try it for yourself.
If you intend to invoice more than $75,000 per annum then you probably should be registered for GST.
I presume you're not registered for GST and therefore the amount you need to put aside is for income tax only. 20% will probably be close to sufficient if you have no other income.
Another item to consider is if you are contracting to one client and you are providing labour only services then you might not meet the 80/20 guidelines and potentially you may be deemed to be an employee. Without further information is difficult to comment one way or the other.