Managing Cash Flow: Tips to Keep Your Small Business on Track

Whether you're a sole trader, a growing business, or managing staff, planning ahead makes a big difference.

What Is a Tax Debt?

A tax debt occurs when you owe tax and miss the due date.
If this happens, the ATO may apply general interest charges, increasing the total amount payable over time.

How to Avoid Tax Debt

Small and simple habits can make managing tax easier. Consider:

• Using digital accounting software to track income, expenses and GST
• Setting aside tax and super contributions — ideally in a separate bank account
• Creating a cash flow forecast so you know what’s coming in and going out
• Paying on time — from 1 July 2025, interest on unpaid tax is not tax-deductible
• Choosing monthly BAS reporting if it aligns better with revenue cycles
• Keeping accurate records and backing them up
• Getting support from a registered tax professional when needed

A proactive approach now can prevent surprise tax bills later.

Budgeting for Tax as an Individual

If you earn income outside regular wages — such as:

• Contracting or freelancing
• Rental income
• Cryptocurrency
• Capital gains from shares

…it’s important to budget for tax throughout the year.

The ATO’s online tax estimator can help you work out how much to set aside.

Paying Early & PAYG Instalments

You can make voluntary tax payments at any time. If paid more than 14 days before the due date, you may even earn interest.

If eligible, the ATO may place you into — or you may request — PAYG instalments, which spread tax payments across the year and avoid one large bill at lodgement time.

Need to Fix a Payment?

If you’ve paid the wrong ATO account — for example, paying income tax into your BAS account — a transfer can be requested using ATO online services or through your tax agent.

How TaxAssist Accountants Can Help

We support small business owners by helping you stay organised, compliant and confident.

We can assist with:

• Cash flow and budgeting systems
• BAS, GST and PAYG instalments
• Xero setup and automation
• Improving record-keeping and reporting
• Ongoing business and tax planning

Book a FREE Initial Consultation

Whether you’re starting out or improving existing systems, we’re here to help.

Book your free consultation with your local TaxAssist Accountant today by calling 1300 513 332 or send us a online inquiry on our website. 

We’ll help you plan ahead, reduce risk and build long-term financial stability.

Published 27 Nov 2025

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.