Manage the financial success of your business

Jack Staines • April 12, 2022

Start your business right

There’s a lot to know when you become self-employed. The best way to protect yourself from surprises is to plan ahead.

Setting yourself up properly — legally and financially — is key, leaving you to get on with your business.

Take your first business steps with handy checklists, registration links and useful tips –  use our First Business app.

Manage your cash flow

Many self-employed people earn a good living. But even if your overall annual income is strong, the flow of money is not always regular. It can be weeks or even months between pay cheques.

To help with your cash flow, only make larger purchases once you’ve paid yourself and covered regular bills. Keep some money aside for the unexpected.

Being self-employed means you won’t have the benefit of paid holidays or sick leave. It’s up to you to put money aside. Regularly saving a little extra will help you manage during quiet periods, as well as funding a well-deserved break.

See business.gov.au for tips on  managing your business finances.

Separate your wages and business money

Make a clear division between ‘your money’ and what belongs to the business. Pay yourself a wage, and keep separate bank accounts so that business spending doesn’t get mixed up with your own.

This makes it clear what the business has earned and paid out. It’s also easier to see the financial state (the ‘profit and loss’) of the business at any time. 

Think about tax early

It’s important to think about tax throughout the year, not only at tax time. Get advice from an accountant and plan for what’s coming. Call us on 07 4662 3722 if you need assistance.

Income tax

If you’re self-employed, you need to pay your own  income tax.

Put money aside as you earn it, rather than waiting to receive a big tax bill. Open a  savings account  and transfer a percentage each time you get paid. Make this account for tax payments only, and off limits for other spending.

If your business grows, the Australian Taxation Office may require you to pay income tax in quarterly instalments. This is known as pay as you go (PAYG). Get an idea of how much you might have to pay with their  PAYG instalment calculator.

Goods and services tax (GST)

Businesses that earn over $75,000 per year must register for GST. Once you’ve registered, you must lodge a regular Business Activity Statement (BAS) to report how much GST your business has collected and is claiming. This may be quarterly or annually.

Easily calculate the amount of GST you have to charge your customers or pay your suppliers –  use our GST calculator.

Tax deductions

You may be able to claim some of your business costs against your income, meaning you pay less tax. Speak to us, and keep all your receipts in case you need them.

Make your super count

Superannuation may not be at the top of your list when you’re starting out by yourself. But it’s important to think about it early. Super is a tax-efficient way of saving money to live on when you stop working.

Since you won’t get regular super contributions from an employer, it’s up to you to make them yourself. As well as investing for your future, adding to your super can reduce the tax on your current income. You may also be eligible for the government super co-contribution.

See  super for self-employed people  for more information.

Protect your income — and your business

Without sick leave, getting sick or injured can mean financial difficulties.  Income protection insurance  can help you pay your bills if you can’t work. If you have a super fund, find out whether they offer income protection insurance as part of the package.

If you’re moving from employee to self-employed, check if this affects the insurance cover through your super. Insurance terms and conditions vary from fund to fund.

Consider other types of insurance that can protect you and your business, such as public liability insurance and workers compensation insurance. See business.gov.au for information about  insurance for business  or call us on 07 4662 3722.

Case Study

Nathan stays on top of a variable income

Nathan runs his own business as a landscaper.

Nathan’s income and expenses go up and down through the year. At first, he found this hard to manage. So he added up his monthly expenses to work out an amount to pay himself each month.

Next, he worked out his monthly cash flow by looking at what he earned across the whole year, then dividing it by 12 to get a monthly average. This tells him whether he’s earned extra or not.

When Nathan earns more than usual, he now puts the extra into savings to get him through the leaner months. This means he has funds to cover unexpected business costs, such as an urgent repair.

If you need help managing your business’s finances, contact us today.

Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at  https://moneysmart.gov.au/self-employment

Important note: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  Past performance is not a reliable guide to future returns.

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Do you know how your super is performing?

By Nikki Ashurst • November 2, 2026
Many Australians don't know how their super fund has performed or what it invests in. Are you one of them? Here's what to check and why it matters. Do you know how your super fund performed over the last two years? Many Australians don’t and are working towards their financial future without fully understanding one of their most important assets and without a clear plan for how their super may support them in retirement. That's not surprising, as many people view super as something that should run quietly in the background while they're busy with careers, families and everything else that life throws at them. But when you’re not sure what’s happening behind your balance, it’s harder to know whether you’re on track, whether your current approach reflects your goals or what opportunities might be available to help you make the most of what you’ve built so far. Your super isn't sitting in an account, it's invested Super is invested by a fund on your behalf across a mix of assets, with those investments working to grow your balance over time. Those include: Shares Ownership in Australian and international publicly listed companies. Their value can rise and fall, sometimes substantially over short periods but shares can provide capital growth over the long term. Property and infrastructure Real assets like office buildings, shopping centres, airports and energy networks. They can produce income and don't always behave in the same way as share markets, helping diversify investment holdings. Fixed interest and bonds Lending to governments and companies in return for interest. They can provide regular income and be steadier than shares, although returns and risk vary depending on the investment. Cash Generally, the most stable and lowest risk investment type. It can provide stability and faster access to money but typically offers lower longer term return potential. The investment option you choose determines the mix of assets held in your super based on your risk appetite. Most super funds offer options from conservative to high growth. If you’re young, a growth option with a higher exposure to growth assets like shares could offer higher returns over time – but it also comes with higher risk. As retirement nears, you might want to consider a more conservative approach with more defensive assets, like bonds for example to protect your savings. If you've never made a choice, you're probably in your fund's default option, which is designed to suit a broad membership. It’s worth knowing whether the mix you're in matches your circumstances and goals, including how far you are from retirement. Why performance alone is not a true comparison If you're thinking about how your super compares, returns are often where people start. The trouble is that a return figure means nothing without context: What it's being compared to Growth and conservative options invest differently and with different levels of risk. Compare like with like or the comparison may not be genuine. The comparison period A single year can be heavily influenced by short term market conditions. Super is measured in decades, so five, seven and ten year returns tell you far more about whether a fund is consistently doing its job, albeit not a predictor of future performance. Fees and tax Published returns should reflect investment fees, costs and tax but administration fees may be charged separately from your balance. Two funds quoting the same return can leave you in meaningfully different places once all fees are accounted for. Then there are the things that returns can't show you at all. For example, what insurance is attached to your account and what it's costing you, whether the fund offers guidance, tools and advice or simply sends a statement once a year. Another consideration maybe the level of support available when you need it. When comparing funds, it's worth looking at the full picture, including performance, fees, investment options, retirement support and member benefits. What today’s decisions mean tomorrow To understand how your super stacks up, start here: Find your investment option It's on your annual statement and in your online account. Look at what's in it Your fund publishes the asset allocation (shares, cash etc.) for each investment option. Check the long-term return for that option Focus on five and ten year returns, not just last year and compare them with equivalent options. Understand the total cost Add together administration fees, investment fees and insurance premiums as an annual dollar figure. Comparing super is about working out which option will perform best for you. Before you jump in, it’s worth understanding what's behind the numbers so you can make decisions based on more than a headline return. Knowing where you stand is the first step A super balance tells you where you are today. Understanding how your super is invested, how it compares and whether it's aligned with your goals helps show whether you're heading in the right direction. Source: MLC The information in this article does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Capstone Financial Planning nor their directors, employees or authorised representatives gives any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document. Principal Wealth Management Pty Ltd trading as BMO Financial Solutions ABN 53 109 336 601 is a Corporate Authorised Representative (CAR 277821) of Capstone Financial Planning Pty Ltd ABN 24 093 733 969 Australian Financial Services Licence (AFSL) No. 223135.

The SMSF landscape is changing

By Jude Schofield • October 7, 2026
More Australians are choosing to take direct control of their retirement savings by establishing a self-managed super fund (SMSF) and according to the SMSF Association, Aussies now see their super as an important part of building and managing their overall wealth.