4 Tips from a Quickbooks accountant to better manage your business finances
Delivering delicious meals to people’s homes is a great way to make people happy and earn some money at the same time. The only downside is the admin, particularly when you’re just starting out –
Don’t worry – it’s easy when you know how so our friends at QuickBooks have put together a handy 4-step guide to ensuring you stay on top of your finances, expenses and taxes while riding with Deliveroo.
If you think you are going to be doing more than a couple of deliveries for Deliveroo the Australian Tax Office (ATO) will expect you to declare your income and pay tax on it. It’s a good idea to save about 30% of what you earn so you don’t get stuck with a tax bill you can’t pay at the end of the year, or you can pay some each month (PAYG).
As a rider you should already have an Australian Business Number – they are free from www.abr.gov.au – and if you’re new to working in Australia you have needed to get a tax file number too from the ATO. If you are a someone interested in riding with Deliveroo you will need to get these organised prior to onboarding.
Finally, if you deliver heaps of meals and earn over $75,000 per year, you need to start tracking GST (goods and services tax) and submit Business Activity Statements (BAS) every month or quarter. Check out QuickBook’s blog to learn more about BAS.
Tracking your expenses doesn’t sound like fun, but remember every business expense you include on your tax return
your taxable income – so don’t forget any! Eligible business expenses include fuel, maintenance and servicing costs, insurance, clothing and safety equipment used for making deliveries like helmets and gloves.
A great way to track your expenses is the QuickBooks Self-Employed app. You link it to your online banking account and can easily separate your business expenses from your personal transactions. Any receipts you get, just take a snap on your phone and the app automatically stores them against the right transaction. No need to keep a shoebox of receipts any more.
Did you know that every 1000km you drive for your business entitles you to $6,600 in tax deductions? Even better, it’s not just when you are delivering food – that distance includes the drive to the restaurant to pick up, and to get home again afterwards. The more you drive, the more you get back (up to 5,000km maximum).
You can keep a paper logbook to track all of your business mileage, but the QuickBooks Self-Employed app tracks all your trips automatically using your phone’s GPS. You just separate your business trips from your personal ones with a single swipe of the screen.
If you are making regular Deliveroo deliveries, you’ll see a steady income coming in and can track your income and expenses in real time on the QuickBooks Self-Employed app. You can even create reports to easily share with your accountant or BAS agent, so you can make tax time relax time.
Ready to start delivering and make some money? Click here to learn more about the Quickbooks app.