0468 055 582 See if we fit

Guides · 12 October 2026

Cash flow and BAS habits that stop tax time hurting

Most tax stress isn’t about the tax. It’s about the money not being there when the bill arrives. A few boring habits fix most of it.

Why the bank balance lies

At $500k to $2M turnover, a healthy-looking bank balance often includes money that isn’t yours. There’s GST you’ve collected, PAYG you’ve withheld from staff wages, super you owe, and income tax that will arrive later. If the business is growing, the gap between “cash in the bank” and “cash we can spend” gets wider, not narrower.

Habit 1: a separate tax account

Open a second account and call it “Not ours”. Each week or month, move in:

  • the GST you’ve collected (less the GST you can claim),
  • PAYG withheld from wages, and
  • a percentage of profit for income tax.

When the BAS or tax bill arrives, you pay it from that account and the operating account doesn’t notice. The business tax health check gives a rough monthly set-aside figure to start from. Your accountant can fine-tune the percentage.

Habit 2: know your dates

The ATO’s BAS due dates for quarterly reporters are:

  • July to September: 28 October
  • October to December: 28 February
  • January to March: 28 April
  • April to June: 28 July

The ATO says lodging online can give you an extra two weeks for some quarters, and registered tax or BAS agents may get more time. The October to December quarter doesn’t get the extension, because 28 February already includes one. If a date falls on a weekend or public holiday, you can lodge and pay on the next business day. Put every date in the calendar with a reminder two weeks before.

A reminder on GST: the ATO generally requires GST registration once your GST turnover reaches $75,000.

Habit 3: reconcile, at least monthly

The ATO’s BAS and GST tips include reconciling sales with bank statements and using a digital record-keeping system suited to your business. In practice that means matching bank feeds in your accounting software every week or two. It takes ten minutes when it’s current and a weekend when it isn’t.

Habit 4: keep records like someone will ask

The ATO says most business records need to be kept for five years, generally from when the record was prepared or obtained or the transaction was completed, whichever is later. Photograph receipts when you get them, keep invoices in the software, and keep business and personal spending in separate accounts.

Habit 5: a one-page monthly check

Once a month, look at four numbers: profit for the month, cash in both accounts, what customers owe you and what you owe suppliers. If profit is up but cash is down, that’s worth a conversation before it becomes a problem.

A ten-minute weekly routine

  • Monday: match last week’s bank feed transactions in your accounting software.
  • Move the GST, PAYG and tax percentage into the tax account.
  • Send any invoices that haven’t gone out, and chase anything more than 30 days overdue.
  • Snap and upload any receipts still in your wallet or car.

It sounds small, and that’s the point. Owners who keep this routine tend to find BAS takes an hour instead of a weekend, and their accountant spends less time (and charges less) tidying up at year end.

If you’re already behind

It happens, especially in a growth year. The ATO’s advice is to contact them as soon as possible if you’re finding it hard to lodge or pay on time. You should still lodge on time even if you can’t pay in full. Ignoring it is usually the most expensive option.

Where PRM fits

These habits work whoever runs them: you, your bookkeeper or your accountant. If you’d like a team to set them up and keep them running while you get on with the work, join the PRM Rising waitlist. We take on a small number of new businesses each month, so we can give each one proper attention.

Where does your business sit?

Take the free 2-minute business tax health check, then join the PRM Rising waitlist or book a call with Shay.

Take the health checkJoin the waitlist

Sources

General information only. This doesn’t take your circumstances into account and isn’t tax, financial or legal advice. Talk to your accountant or registered tax agent before acting. PRM is not a registered tax agent; tax agent services are provided by Australian Tax & Super Pty Ltd (TPB 25291395).