Tax Invoices for Aussies, But Probably Others As Well

by 8 comments
Here's what I'm doing. It's basically web design and management for a VERY targeted niche: professionals of a certain sport. Basically, I've been running a site for my brother in this niche and other pros want me to help them out by setting up a site, similar to my bro's site. Because I've just started a company, I want to do it legitimately i.e. tax, etc.

Here's what will happen:

- I'll have a simple site with all the info for the pro.
- Charge an upfront payment to get the site going.
- Charge a recurring monthly fee for maintenance, which is substantially lesser than the upfront payment.

How would I do this in a way that not only works, but is suitable for tax reporting?

The pros would like to claim this as a business expense.

My thought would be to accept the upfront payment using something like 2checkout or PayPal, but I'd also have setup another payment with a monthly subscription via PayPal. How would this work out tax wise?
#internet marketing #aussies #invoices #tax
  • Profile picture of the author Dan Thompson
    We do a similar thing with local sports clubs, we use a modified version of the WHMCS script to store all client details, hosting account details, domain details and so on.

    We then set up a product with a one time fee (the initial website), then a recurring fee for the on-going costs.

    The script generates, and emails out invoices x days before the due date. The client then pays the invoice either automatically (PayPal, 2CO etc.) or offline using cheque or bank transfer.

    When payment is received the PDF invoice is marked as paid and a copy sent to the client via email so they can print it off and claim it as a business expense.

    The script then saves all transaction details (initial payment and recurring), fee's, costs etc that we can use to work out our own income, tax to pay and so on.

    So in short, if you have a good script running the back-end of things you'll be fine!
    • Profile picture of the author Joshua Uebergang
      Sounds exactly the same Dan!

      I have fantasos (jvmanager 2), but I don't plan to use any Customer Relationship Management software to manage this because it would be for about 5-10 people. Maybe I should use fantasos for this - I'll ask in John's forums.

      It seems I would not have to issue a tax invoice for the reoccuring payments because they are under $82.50 (the minimum amount before a tax invoice must be issued). As for the upfront payment, because it would only ever be done a few times, I should just do it myself.

      Other aussies have input?

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