Income and deductions for small business

Accounting methods

The amounts you include as assessable income in any income year depend on how you account for your taxable income, as shown in the following table.

Accounting method	What to include in your assessable income
Cash basis	Only income you received during that income year.
Non-cash (accruals) basis	Include all amounts you have issued an invoice for during the income year, even if you haven't received the payment. For example, if you sent out an invoice for $724 in June but were not paid by the end of the income year, you must include the $724 (less any GST) in your assessable income for that year.

Sections within Working out your assessable income

• What to include in your assessable income
• What not to include in your assessable income
• Small business concessions
• Trading stock
• Separating your business and personal income
• Accounting methods
• Contractors and consultants
• Capital gains
• Primary producer or special professional income
• Income you earned from outside Australia
• Example: working out assessable income