Accruals or Cash basis - Most sole-traders who personally earn the income will be Cash basis, but those with employees or trading in goods may need to use Accruals. Note these are NOT the same rules that apply to BAS.
Bad Debts - only deductible if previously included in income (under the Accruals basis). In this case a reduction to income is acceptable.
Bank Charges - may include a reasonable apportionment of card fees. Borrowing costs are claimed 20% per year. Only Merchant fees include GST.
Cost of Sales - if trading in goods, an opening & closing stock is needed. The end stock may value obsolete/spoiled items at less than cost or nil. The ATO allows an estimate if the change is less than $5000.
Depreciation - provide or attach calc details. Small business rates are 15% first year, 30% on opening wdv second year, or 100% new purchases < $20,000. The total opening wdvs may also qualify for 100% if under 20,000.
GST - if registered, exclude GST from all amounts received/paid. If not, it stays included. If you have exceeded $75000 turnover then GST registration is urgently needed, unless a downturn in revenue can be proven.
Interest - bank & card interest, but segregate from asset finance interest, which may need calcs or apportioning for private use. Exclude ATO interest as this goes under Other Deductions in your return, which we check.
Motor vehicle costs - not needed if a commercial vehicle, otherwise you can apply a logbook % to your total costs, or claim on a per km basis (max 5000 kms). Please provide rego, details & calcs.
Rent & utilities - if this is home and its your sole place of business, a calc of rent or owner interest & rates is needed using a % of dedicated floorspace. Utilities can use a reasonable % usage of bills instead.
staff & super - must have been paid & exclude yourself. Your own super is claimed under Other Deductions. Ensure your PAYG reg is up to date.
private use - is a target area hence the need for calcs, which do not go to the ATO, but help us halt any enquiries before they turn into an audit.