Do you keep track of any business income in your private accounts so that you can report it correctly in your business tax return?
We have no concerns with business owners banking their business takings or other sales in private accounts. However, it becomes an issue when this income isn't reported.
A good way to avoid this problem is to establish a separate business bank account and only deposit your sales and other business income into this account. This can help you with record keeping and monitoring your business’s cash flow.
Remember, your business income includes all sales, whether they're cash or electronic (for example, internet sales). These are all assessable income sources and must be reported on your business’s tax return. You also need to report earnings for services your business provides.
The ATO uses many tools to identify income earned and to check if it matches income reported.
If you are unsure about what income you need to declare, check our online resources or consult with a tax professional for advice. Your tax professional can help you record and report your business income correctly.Don’t forget to declare all your income.