Put tax aside every job, so tax time is not a shock

A lot of tradies have a great year and then a horrible tax bill. The money came in, it went into the everyday account, and it got spent on fuel, tools and life. Then the ATO wants its share and it is not there.

The fix is boring and it works: put tax aside every time you get paid.

Some of that money was never yours

If you are registered for GST, the GST part of every payment belongs to the ATO from the day you receive it. You are just holding it until your BAS is due. Income tax is the same idea, just paid later. Treat both as money you are minding, not money you earned.

Move a slice every time a job is paid

Each time an invoice is paid, move a set slice of it into a separate account. Do it on the day, not at the end of the month. Small amounts often are far easier than one big catch-up.

If you charge GST, at least move the GST portion across. Then add a slice for income tax on top.

Keep it in a separate account

A separate savings account, ideally at the same bank so transfers are instant, is all you need. Give it a name like "Tax, do not touch". If you cannot see it in your everyday balance, you will not spend it by accident.

Ask your accountant how much

How much to put aside depends on your income, your expenses, whether you are registered for GST, and whether you pay PAYG instalments. Your accountant can give you a percentage that fits your business. It is one of the most valuable five minute conversations you can have with them.

Then tax time is no shock

When the BAS or the tax bill arrives, the money is already sitting there. You pay it and get on with your week. Anything left over after your return is done is a bonus, not a debt.

How Its All Sorted helps

Its All Sorted shows you what has been paid and what is still owing as it happens, and keeps the GST on every quote and invoice clear. You always know what came in, so moving your tax slice across is a two minute job on the day.