How Do you Get an Income or Payment Statement as a Sole Trader?
Read Time – 5mins
How do you generate your own income or payment statement when you don’t work for an employer?
If you’re an independent NDIS support worker, provider or sole trader, you might be wondering:
“Where do I get my income statement or payment summary for tax time?”
It’s a common question, particularly if you’ve previously worked as an employee and are used to receiving a payment summary from your employer. The important thing to know is that being a sole trader is different.
You Don't Receive a Payment Summary as a Sole Trader – there is no employer
When you work for yourself under your own ABN, you’re running your own business. You don’t have an employer paying you a salary and issuing you with an income or payment statement at the end of the financial year.
Instead, you’re responsible for keeping track of your own business income and expenses and providing this information to your accountant or tax agent when it’s time to complete your tax return. Or if you do your own tax, you’ll need a list of all of these expenses and payments. This is where things can sometimes get a little confusing for independent providers.
If you’re providing services to clients, plan managers or other organisations, you may expect the organisation paying your invoices to provide you with a yearly payment summary. Generally, that’s not how sole trader income works. Your invoices and business records are what help show what you’ve earned.
So, How Do You Get an Income Statement?
If you’ve been keeping track of your invoices and expenses throughout the year, creating a report doesn’t have to be a big job.
Within a little app called Earni, you can generate an income statement from the information you’ve already recorded in the app. Your invoices show what’s coming into your business, while your recorded expenses show what’s going out.
Simply select the date range you need, generate your report, and you’ve got a clear summary of your business income and expenses ready to send to your accountant.
All done in 30 seconds!
No searching through old invoices.
No trying to find that missing expense receipt.
No adding everything up in a spreadsheet or word doc.
No trying to remember what you earned six months ago. 😮💨
Keep Your Records Updated Throughout the Year
The trick is not leaving everything until July.
If you record your invoices and expenses as you go, your financial information is already there when you need it. Earni does this for you. Everyday, as you go. One little intuitive app keeps everything together, so at the end of the financial year you can simply generate your report and send it straight to your accountant. Or use it yourself to manage your tax return super easy!
Because your expenses are already recorded, you can also get a clearer picture of your profit and loss throughout the year. It’s the easiest way to get your income or payment statement fast.
Less tax-time scrambling, more “I’ve Got This” 💜
