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Lys B.
Lys B.
Bairnsdale, VIC
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Hi, I recently have started my own business, and I run out of an appointment book. Receive cash and eftpos transactions. When it comes to tax time, how do I show my earnings? Do I deposit the cash into a seperate account into my bank? Or is it ok to deposit and transfer into my house deposit savings account and description it as Business earnings?

6 years ago

Responses

Hi There,

OK are you a Sole Trader? or a Company?

Assuming you are a sole trader it is ok for you to deposit the money into your own bank account because at the end of the day you will be assessed on your total income.

However, for practical purposes it would be better to segregate your work and personal life. Have one account for the business and pay all bills from that account. Deposit all monies into that account. If you need to pay yourself a "wage" take a predetermined amount each month.

Try not to pay for personal expenses here and there from the business or with business cash. It will get confusing and it will end up costing you more for the accountant.

Hope that Helps


AJ

What happens to the cash and EFT deposits is your business .........once you receive the money. The issue is making sure that you correctly record ALL the income and ALL the expenses in a way that your bean counter can rely on when preparing your tax return.
there are a multitude of online accounting package providers who offer cloud-based packages aimed directly at small businesses like yours. Look at the likes of MYOB Essentials, Xero and Reckon....they all pretty much do the same thing and all pretty much cost similar amounts.
And what Andrew has said about keeping the business stuff in a "business account" is spot on!!! it will make your life a LOT easier if you have one bank account to go through.
cheers
Brendan

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