Quick answer
In your first year, settle ten money questions: separate business banking, the right structure, GST registration at the $75,000 threshold, a BAS routine, setting tax aside, super and Payday Super if you employ, a cash buffer, simple monthly bookkeeping, how you'll fund growth, and what a lender will need. Getting these right early builds the clean trading history that makes future finance far easier.
Key points
- A separate business account from day one creates the trading record lenders read.
- Register for GST once GST turnover reaches $75,000 or more, and build a BAS routine.
- Set aside tax and super as you go; Payday Super applies from 1 July 2026 for employers.
- A cash buffer and simple monthly bookkeeping prevent most first-year crises.
- Plan how you'd fund growth before the opportunity arrives.
Starting a business is a rush of decisions — name, logo, customers, premises, first hires. Money admin tends to fall to the bottom of the list. Yet the habits you set in the first twelve months decide how your business looks on paper, and that paper is exactly what a lender reads when you need finance in year two.
You may never need a loan. Still, young businesses meet surprises — a customer who pays late, a machine that dies, an order bigger than the bank balance — and the owners who cope best are the ones who can raise money quickly when it counts. These ten questions make that far easier.
1. Is all business money going through a business account?
This is the foundation. A dedicated business account, used for every sale and every business expense, creates a clean trading record. Lenders sizing unsecured loans lean heavily on business bank statements — our page on borrowing without property explains why.
Common first-year mistakes: taking some payments into a personal account, paying business costs from a personal card, or running two businesses through one account. Each makes turnover harder to prove.
2. Is my business structure right for where I’m heading?
Sole trader, partnership, company or trust — each has different tax, liability and borrowing implications. Changing structure later is possible, but it complicates your history. A short conversation with an accountant in the first year is time well spent.
3. Do I need to register for GST yet?
The ATO says you must register for GST when your GST turnover reaches $75,000 or more, and you can register voluntarily below that. Keep an eye on the threshold as you grow — crossing it without registering creates a problem that’s much easier to prevent than fix.
4. Do I have a BAS routine?
Once registered for GST, you’ll lodge BAS. For quarterly lodgers, the ATO’s due dates are 28 October, 28 February, 28 April and 28 July. A routine helps:
- Reconcile your accounts monthly, not quarterly.
- Estimate each BAS a month before it’s due.
- Lodge on time, even if you can’t pay in full straight away.
Lodged BAS doubles as evidence of turnover for lenders — see what documents you need.
5. Am I setting tax aside as I go?
GST collected and income tax on profit both need paying later. A simple habit — moving a set portion of each receipt into a separate tax account — prevents the classic first-year shock of a big bill with nothing set aside. Your accountant can suggest the right portion for your business.
6. If I employ people, is payroll ready for Payday Super?
From 1 July 2026, Payday Super requires employers to pay super with wages, and contributions must reach employees’ super funds within 7 business days of payday, according to the Fair Work Ombudsman. For a new employer, that means super is part of every pay run from the start. Build it into your payroll process and your cash flow forecast. If you’re planning your first hires, read borrowing to hire staff.
7. Do I have a cash buffer?
A buffer turns a late-paying customer or a slow month into an inconvenience rather than a crisis. There’s no official figure; many owners aim to cover a period of fixed costs. Build it gradually, and protect it.
If the buffer isn’t there yet, it’s worth knowing what finance could fill the gap if you needed it — a question you can ask a real person without any credit check at the enquiry stage.
8. Can I produce a profit and loss statement on request?
Lenders, landlords and even big customers may ask for one. Keeping bookkeeping current — ideally monthly — means you can produce a profit and loss statement and balance sheet in minutes rather than weeks. business.gov.au’s financial tools and templates include profit and loss, balance sheet and cash flow templates.
9. How would I fund growth if the opportunity arrived tomorrow?
A big contract, a second site, a bulk-buy discount — opportunities rarely wait. Think now about how you’d fund one:
| Opportunity | Likely funding |
|---|---|
| Big contract with upfront costs | Line of credit or short-term loan |
| Equipment to take on more work | Equipment finance or a term loan |
| Seasonal stock | Line of credit |
| Second site or fit-out | Property-secured or unsecured loan |
| Hiring ahead of demand | Line of credit or term loan |
In year one, property security — including a home — often opens more options than unsecured lending, because trading history is short. See how long you need to be trading.
10. Do I know what a lender would ask me?
Lenders look at cash flow, purpose, repayment source, security, credit history and time trading. If you know that list in year one, you can build your business to answer it well: clean statements, lodged BAS, a clear purpose for any borrowing and an honest credit file.
The loan navigator asks the same questions a specialist would and shows your likely route — useful even if you’re not borrowing yet.
What does a well-run first year look like? (Illustrative example)
Illustrative only — invented business.
A Fremantle bakery opens in February. From day one, all takings go into a business account; GST and a tax portion move to a separate account weekly. The owner registers for GST before crossing $75,000, lodges each BAS on time and reconciles the books monthly.
In November, a café chain offers a supply contract that needs a second oven and an extra baker. The owner can show nine months of clean statements, three lodged BAS and a current profit and loss statement. A modest facility is arranged for the oven and the ramp-up. Without that first-year discipline, the same opportunity would have been much harder to fund.
What should I review at the end of year one?
The first anniversary is a natural checkpoint. Sit down with your accountant, or on your own with the bookkeeping file, and review:
- Twelve months of bank statements — do they tell a clear story of the business’s income and costs?
- Four BAS — lodged on time? Any tax left unpaid?
- The buffer — did it survive the year, and is it the right size for next year?
- Your structure — still right for where the business is going?
- Your pricing — does the margin cover costs, tax and a buffer with something left for you?
- Your finance plan — if an opportunity or a shock arrived next month, how would you fund it?
A year of clean records is valuable in itself: it’s the point at which many unsecured options start to open up, because a lender can finally see a full seasonal cycle.
What are the most common first-year money mistakes?
- Mixing personal and business money.
- Spending GST as if it were income.
- Missing the GST registration threshold.
- Leaving bookkeeping until tax time.
- Having no buffer at all.
- Taking the first expensive short-term loan offered in a panic.
Build the record that makes future finance easy
The first year sets the pattern lenders read later. When you’re ready to talk — whether that’s now or next year — enquiring doesn’t involve a credit check, your details aren’t spread across a crowd of lenders, and a real person looks at where your business is today. Please answer the form accurately, including how long you’ve been trading and your monthly turnover, so we can point you to the right option first time.
Frequently asked questions
When do I need to register for GST?
The ATO says you must register when your business's GST turnover is $75,000 or more. You can register voluntarily below that. Once registered, you'll lodge BAS.
How long before a new business can get a loan?
There's no single rule. Unsecured lenders generally want to see a meaningful run of trading in your bank statements, often six to twelve months. Property-secured loans can be available earlier because the property carries more of the risk.
Should my business have its own bank account?
Yes. A dedicated business account keeps income and costs clear for tax, bookkeeping and future lenders, who rely heavily on business bank statements.
How much cash buffer should a new business keep?
There's no official figure. Many owners aim to cover a period of fixed costs — rent, wages, loan repayments — so a slow month or late payer doesn't become a crisis. Your accountant can help set a target.
Do I need a business plan to borrow?
For start-ups and larger loans, lenders often want one. business.gov.au lists a business plan among the documents lenders commonly ask for.