Tax Planning Tips for Startups from a Tax Accountant in Liverpool, Sydney NSW

Starting a new business is exciting—but when it comes to tax, many startups get caught off guard. From cash flow hiccups to missed deductions, poor tax planning can cost you big time.

If you're just getting started in Liverpool, Sydney NSW, here are some simple and smart tax tips to keep your startup on track—straight from the desk of a local accountant.

1. Set Up the Right Business Structure

Before you start selling or signing contracts, make sure you’re using the right business structure.

Should you operate as a sole trader, partnership, company, or trust? Each comes with different tax obligations, levels of risk, and paperwork.

Choosing the right structure early on can save you tax and headaches later.

2. Keep Business and Personal Expenses Separate

This one’s a biggie. Mixing your personal and business spending can lead to confusion—and worse, trouble with the ATO.

Set up a separate bank account for the business. Use it only for business expenses, and always keep receipts. This will make your life easier when it’s time to lodge your return.

3. Understand What You Can Claim

Startups often run lean, so it’s important to claim every legal deduction available.

Office rent, software subscriptions, internet, phone, marketing, and even travel costs—these might be deductible depending on how you use them.

A good business tax accountant in Liverpool can help you spot deductions you didn’t even know you were entitled to. They’ll also make sure everything is claimed properly.

4. Keep Your Records Up to Date

Waiting until the end of the financial year to organise your accounts? That’s a recipe for stress.

Track income, expenses, GST, and payroll (if any) regularly. Whether you use software or a spreadsheet, consistency is key.

It not only saves time but also ensures you don’t forget anything important come tax season.

5. Plan for Tax from Day One

A common mistake new businesses make is treating tax like an afterthought.

But the ATO doesn’t wait. You may need to register for GST, PAYG withholding, or BAS lodgements depending on your turnover and structure.

Set aside a portion of your income—ideally 20-30%—for taxes. That way, you’re not caught short when it’s time to pay.

6. Know Your Deadlines

Missing tax deadlines can lead to penalties and interest. Mark important dates on your calendar and set reminders well ahead of time.

If you’re working with an accountant, they’ll usually help you stay on top of it. But don’t leave it all to the last minute—ATO fines are no joke.

Final Thoughts

Running a startup is tough enough without tax stress. A little planning goes a long way in helping you avoid mistakes, save money, and focus on growing your business.

If you're unsure where to begin, get in touch with a local expert. A tax accountant in Liverpool, Sydney NSW can provide guidance tailored to your business—and help set you up for success.