Running a creative business means dealing with financial questions that don't always have straightforward answers. We've spent years working with Australian entrepreneurs who face these challenges daily, and we've collected the most common concerns here.
New to managing business finances? You're not alone. Most creative entrepreneurs start without formal financial training.
We help you understand basics like separating personal and business accounts, tracking expenses properly, and setting up systems that actually work for how you operate.
This trips up even experienced business owners. Projects finish, invoices go out, but payments arrive... eventually.
We address practical questions about timing gaps, managing irregular income, and building buffers that give you breathing room during slower periods.
Australian tax requirements can feel overwhelming when you're trying to focus on your creative work.
Our guidance covers common scenarios specific to creative businesses operating in Australia, from GST registration timing to what expenses you can actually claim.
These come up repeatedly in conversations with creative business owners across Australia. If you're wondering about these things, so are many others.
It depends on your volume and complexity. If you're spending more than 5 hours monthly on financial admin, or if you're regularly missing deadlines or making errors, that's usually the signal. Many of our clients started doing their own books but reached a point where their time became more valuable elsewhere. A bookkeeper typically costs less than the time you'd spend, especially if you factor in the stress reduction.
Profit is about the numbers on paper – revenue minus expenses. Cash flow is about actual money moving in and out of your account. You can be profitable on paper but still struggle to pay bills if clients take 60 days to pay while your expenses are due immediately. This distinction matters enormously for creative businesses with project-based income.
You're required to register once you earn over $75,000 annually. Before that threshold, it's optional. Some register early to appear more established or because their clients prefer GST-registered suppliers. But it does add quarterly reporting obligations. Consider your client base and administrative capacity before deciding to register voluntarily.
A common rule of thumb for creative businesses is 25-30% of your net income. This covers income tax and, if registered, GST. But your actual rate depends on your total income and deductions. We recommend setting up a separate account and transferring the percentage immediately when client payments arrive. It removes the temptation to spend money that technically belongs to the ATO.
The ATO requires five years of records for most business transactions. This includes invoices, receipts, bank statements, and payment records. Digital copies are fine – actually, they're easier to organize. The key is having a system from day one. Many business owners we work with struggled later because they didn't keep proper records early on, then faced reconstruction headaches during tax time or audits.
You can claim the business portion, but you need to demonstrate a reasonable basis for the split. For example, if you use your phone 60% for business, claim 60% of the bill. Keep a log for a representative period to establish the percentage. Same principle applies to home office costs, vehicle use, or shared subscriptions. Documentation matters if the ATO ever asks questions.
Financial Advisor
Helping creative businesses make sense of their numbers since 2018
Business Consultant
Specialist in cash flow strategies for project-based businesses
Every business has unique circumstances. What works for a freelance designer differs from what works for a creative agency or a product-based business.
We're here to discuss your specific situation. No generic advice or cookie-cutter solutions – just practical guidance based on real experience with Australian creative businesses.
Talk to Our Team