Managing GST and Cash Flow for Growing Trade Businesses

As your trade business expands, managing your GST liabilities can become complex. It is not just about collecting the extra 10% from customers; it is about ensuring that money stays in your account until the ATO asks for it.

Common GST Traps for Tradies

• Spending GST collected from invoices on day-to-day overheads
• Failing to reconcile bank feeds to capture all deductible business expenses
• Ignoring the difference between cash and accrual accounting methods
• Mixing personal spending with business bank accounts

1. Open a high-interest savings account dedicated solely to your tax and GST liabilities
2. Transfer 10% of every customer payment into this account immediately
3. Review your bank balance every Friday to ensure you are meeting your obligations
4. Set up automatic reminders for your upcoming BAS due dates