Running a small business is already a rollercoaster of chaos, but throw in BAS, IAS, GST, tax deadlines, and the Australian Taxation Office “ATO” breathing down your neck, and it can feel like you’re in a financial horror movie.

I’ve worked with many small businesses to implement real, actionable plans that turned their tax debt around—no fluff, no false hope, just smart financial decisions and a solid game plan. The reality? Most (but not all) small businesses don’t have an income problem; they have a spending problem.

It’s time to take a hard look at your business expenses—yes, that includes the unnecessary spendings. If your business is struggling, every dollar counts. You need to be smart about your money—how you earn it and how you spend it. Whether it’s personal finances or business cash flow, a solid budget and strategic financial decisions are what keep things running smoothly. It’s not just about making money; it’s about managing it wisely to build stability and growth.

If you’re stressed, drowning in tax debt, and don’t know where to start, don’t panic. Here’s a clear, no-fluff action plan to get your business back on track.

Step 1: Get a Grip on Your Numbers (Before They Get a Grip on You)

First things first—we need to know where you stand financially. No more avoidance tactics, no more “I’ll look at it later.” Later is now.

What to Do Right Now:

1. Log into your bank accounts & check your actual balance to get a sense of where you are right now.
2. List all upcoming bills, BAS payments, tax obligations, and any outstanding invoices. I tend to go straight to excel and create a monthly expense forecasting spreadsheet. If you’re not into spreadsheets (I’ll try not to judge), try using an accounting app like Xero, Quickbooks or even a simple Google Sheet to stay on top of it all.
3. Figure out how behind you are—if BAS is overdue, check ATO’s Small Business Debt Hotline (they’re surprisingly helpful).
4. Do a full expense audit – Where is the money actually going? And let’s be real—are there “business” expenses that are actually just personal indulgences in disguise? (Looking at you, daily lattes and that “client meeting” at the fancy steakhouse). When I do this for clients, I will review at least 3 to 6 months of expenses—because that’s where the truth bombs drop. A one-off splurge is fine, but patterns? That’s where businesses quietly leak cash.

Tools to Help:
💡 Xero or MYOB – Cloud-based accounting software to sync transactions, track income/expenses, and automate BAS reporting.
💡 Wave (Free) or QuickBooks – Good budget-friendly options if you’re tight on cash.

Step 2: Call the ATO Before They Call You

Yes, I know—no one wants to chat with the tax office but hear me out. If you owe tax and can’t pay it in full, proactively calling the ATO puts YOU in control. They’re more flexible if you reach out before they chase you down.

What to Say to the ATO:

✔ Be honest – Tell them you’re struggling but want to fix it.
✔ Request a payment plan – They often let small businesses pay off tax debts in installments. Keep repayments realistic, because overcommitting and missing payments is a fast track to more stress. Aim for an amount you can actually manage while still keeping up with future tax obligations.
✔ Ask about small business relief options – You might be eligible for an extension or financial assistance.

Shortcut:

Use the ATO’s Online Payment Plan Calculator before calling, so you go in with a suggested repayment amount.

Step 3: Tighten the Business Belt and Find Fast Cash (No, Not from Lenders)

If cash flow is tight, you need quick wins to get money moving without making the situation worse.

Boost Cash Flow & Cut the Fat

If cash flow is tight, you need quick wins to get money moving without digging the hole deeper. Time to be ruthless with your expenses and cut the financial dead weight.

✔ Are clients owing you money? Chase those overdue invoices like a debt collector with a caffeine addiction – Send firm reminders weekly (and don’t be shy about picking up the phone).

✔ Offer discounts for early payments – Get slow-paying clients to cough up ASAP by offering a small discount for upfront payments. Cash in hand is better than waiting.

✔ Pause non-essential expenses – Cut subscriptions, extra software, or bulk stock orders that aren’t critical to keeping the business running. If it doesn’t directly generate revenue, it needs to go (for now).

✔ Stop all unnecessary business spending – Owning a business comes with perks, but if your business is struggling, you can’t afford the little luxuries disguised as “business expenses.” That means:

• The fancy coffee subscription for the office—instant coffee works just fine.
• That expensive co-working space—your kitchen table is free.
• Late-night Uber Eats “business dinners”—meal prepping saves you (a lot).
• Upgrading the latest tech when last year’s model still works—your laptop doesn’t need Face ID.

Step 4: Automate Like a Boss & Never Get Stuck Again

The best way to avoid future tax nightmares? Automation. Set things up now so your business runs smoother moving forward (and you never wake up in a panic over BAS again).

Game-Changing Automations:

• BAS & GST Tracking – Use your accounting software (Xero, MYOB, or QuickBooks are great) to track GST automatically so you don’t get slammed with a surprise bill.
• Set Up Auto Tax Savings – Open a dedicated savings account specifically for tax obligations. Automate transfers of a set percentage of your income into this account to cover GST, PAYG, and other tax liabilities (the ATO recommends 20-30%).
• Expense & Receipt Tracking – Keep a record of every expense—big or small—so nothing slips through the cracks. Receipts pile up fast, and when tax time rolls around, the last thing you want is to be scrambling for missing paperwork. Make it a habit to log every expense as it happens, so you’re always in control of your finances.
• Invoice Follow-Ups – Set up regular reminders to keep the cash rolling in—because a sale isn’t a sale until the moneys in your account!

Step 5: Build a Better System for Next Time

Once you’re out of the immediate mess, take 30 minutes to set up a simple financial system that helps you stay on top of tax obligations before they become overwhelming.

My Suggestions- Small Biz Financial Toolkit:

✔ Accounting Software: Xero, MYOB, or QuickBooks
✔ Budgeting Tool: YNAB (You Need A Budget) or Frollo
✔ Cash Flow Tracker: Float or Futrli
✔ Receipt Scanner: Dext (integrates with Xero, MYOB and Quickbooks) or Hubdoc (seamlessly integrates with Xero and Quickbooks)
✔ BAS Reminder: Outlook or Google Calendar (Yes, seriously. Set alerts for BAS due dates!)

Final Thoughts: You Got This!

Look, no small business owner or manager enjoys dealing with the ATO, but avoiding it only makes things worse. With the right software, automations, and a clear action plan, you’ll get back on track and never have to stress over tax deadlines again.

Step 1: Get a clear picture of your finances
Step 2: Call the ATO before they chase you
Step 3: Boost cash flow & cut unnecessary costs
Step 4: Automate BAS, invoicing, and savings
Step 5: Set up a smarter system for the future

Now, go take control of your business finances! And maybe pour yourself a well-earned coffee (or wine).