Running a small business in Australia? You're likely juggling sales, staff, social media — and somewhere in the mix, accounting. But even the savviest business owner can fall into a few financial traps that cost more than just a headache.
Here are five common accounting mistakes Australian small businesses make — and how to dodge them like a true blue boss.
1. Mixing Business and Personal Finances
The Mistake:
Using one bank account for both your business and your weekend wine habit is a recipe for disaster. It muddles your bookkeeping, confuses the Tax Account and just makes Business reporting harder.
The Fix:
Open a dedicated business bank account and get a separate card for expenses. Use accounting software (like Xero, MYOB, or QuickBooks)because they all have bank feeds so your bookkeeper bookkeeper will thank you. And you can start using the parts of your software you may be unaware of
2. DIY Accounting Without the Know-How
The Mistake:
Trying to do it all yourself can work in the early days — until you accidentally underpay GST, miscalculate payroll, or forget to lodge a BAS on time.
The Fix:
Know when to call in a pro. A registered BAS or Tax Agent can save you money and keep you compliant. If you're not ready for a full-time bookkeeper, even quarterly check-ins can keep things in line. BAS agents are checked by the ATO so they know a BAS inside and out. Many also partner with the major software so they also know how to make your software work better for your business.
3. Forgetting About Superannuation Obligations
The Mistake:
Missed or late super payments? That's a big red flag with the ATO — and it's not just frowned upon, it can come with fines and penalties. Big ones if you are director of a Pty Ltd Company you can also be personally liable. Sound scary it is - scary and expenses.
The Fix:
Most of the major payroll software contains ways to automate super payments and set calendar reminders for due dates. Better yet, outsource payroll to someone who lives and breathes this stuff (hint: like a payroll consultant or bookkeeper).
4. Not Reconciling Bank Accounts Regularly
The Mistake:
If you're only reconciling at the end of the quarter (or worse — the end of the year), you're flying blind. You could be missing duplicates, fraud, or uncategorised expenses.
The Fix:
Make bank reconciliation a weekly habit — or automate it. Most cloud-based accounting software allows for live bank feeds to do some of the boring part of Bank reconciliations. Staying on top of your accounts gives you accurate cash flow data and prevents surprises.
5. Ignoring ATO Deadlines and Compliance Rules
The Mistake:
"Oops, I didn't know I had to lodge a BAS!" or "I thought STP was optional." These are famous last words before a compliance letter arrives from the ATO.
The Fix:
Stay up to date with ATO obligations — especially around GST, PAYG, and STP. Sign up for ATO alerts, follow reliable accounting blogs, or lean on your bookkeeper to keep you accountable.
You don't need to be an accountant to run a financially healthy business — but you do need to stay informed, organised, and proactive.
Avoiding these five mistakes won't just save you money — it'll save you stress, sleep, and possibly your business.When in doubt, outsource. Just because you can do your books doesn't mean you should.
Need help cleaning up your accounts or setting up better systems?Let's chat. It's way cheaper than an ATO audit.
