7 Small Habits That Make Tax Time Easy for Sole Traders
Read Time – 6mins
How do You Keep Tax Time Easy All Year Round For Your Business?
As a small business owner in the NDIS, aged care or health industry, tax time can either feel like a quick admin task you tick off your list… or a week spent digging through receipts, bank statements and old emails, trying to find ‘what is what’. 😮💨
The good news? It usually comes down to the habits you build throughout the year. Small things can make a big difference over time.
We have put together our favourite simple and effective habits that can make tax time easy, and much less stressful.
Habit #1 - Record Your Expenses As You Go
Don’t wait until the end of next June to work out what you’ve spent.
Whether it’s fuel, equipment, subscriptions or training, recording your NDIS and Non-NDIS business expenses as they happen means you’ll always know where your money is going, and you’ll be much less likely to miss legitimate tax deductions (which give you back money!).
Habit #2 - Throw Away Paper Receipts
We’ve all done it…
A handful of receipts in the car.
An envelope in the kitchen drawer.
A shoebox that somehow becomes overflowing.
The problem? Receipts fade, get crumpled, or disappear altogether. And you forget what’s on them over the year. Your life is busy!
Instead, keep digital copies so they’re safe, organised and easy to find when you need them. Using a simple tool like Earni app means you can take photos of receipts, upload and throw them away >>> see it in action here
Habit #3 - Set Aside Tax Every Time You Get Paid
One of the biggest causes of tax time stress is realising you owe more than you expected. Or you haven’t paid any tax all year!
Putting aside a percentage of your payments each week or month throughout the year can make a huge difference, and help you avoid a nasty surprise when your tax bill arrives. If you don’t want to pay it as you go, set up a separate savings account, and transfer a little each month – then forget about it. Pretend it’s not there, it’s been accounted for. If you use Earni app, you can transfer straight from your earnings into a bank account, and manage your tax really easy as you go.
Habit #4 - Check Your Numbers – Weekly or Monthly
You don’t need to be an accountant. Simply taking 5-10 minutes a week to review your income, expenses and profit helps you understand how your business is performing. It gives you confidence that you’re on track. If you use Earni, you can see your profit and expenses at a glance on the dashboard on your phone – everyday. You can mark off invoices as they are paid and keep track of all your finances in one place.
Habit #5 - Keep Business and Personal Spending Separate
Using a separate bank account for your business makes it much easier to track your income and expenses.
It also saves a lot of time when preparing information for your accountant, or getting organised if you’re doing your own tax return. It doesn’t have to be a ‘business bank account’ if you’re a sole trader, just have a separate account you use in your own name for business purposes.
Habit #6 - Stop Chasing Your Admin
When your invoices are in one place, receipts somewhere else, and client information spread across different apps, programs or notebooks, admin quickly becomes overwhelming.
Keeping everything together in one place makes running your business and preparing for tax time much simpler. Less chaos. More calm.
Habit #7 - Use Tools That Save You Time
Good systems save you time, energy and stress. Good systems create good habits.
Instead of relying on spreadsheets, word documents, notepads or trying to remember where you’ve saved everything, a simple software like Earni helps you manage your clients, invoices, appointments, quotes, service agreements and business expenses all in one place, all on your phone. Use on the go. No need to wait until you get home.
You can also export a Profit & Loss Statement for your chosen date range whenever you need it. That means when your accountant asks for your financials, they’re ready in just a few finger taps. Done, simple, no fuss.
Tax Time Doesn't Have to Be Stressful
Running an NDIS business already keeps you busy supporting your clients. Tax time shouldn’t add unnecessary pressure.
By building a few simple habits throughout the year, you’ll spend less time chasing paperwork and more time focusing on what matters most – your clients, your business, and yourself. It’s time to make tax time easy.
