Tax time does not have to be stressful
For many independent sales agents, tax time is a source of anxiety. Income from multiple principals, variable commissions, expenses scattered across bank accounts, and the fear of a large tax bill make it a dreaded time of year.
But with basic preparation throughout the year, tax time becomes straightforward.
Throughout the year
Keep your records updated
The single best thing you can do for tax time is to keep your records current throughout the year rather than trying to reconstruct everything in June.
- Record all income as it arrives
- Save receipts for every business expense
- Categorise your expenses (travel, phone, home office, etc.)
- Keep a log of vehicle usage for business purposes
Set aside tax money
Every time you receive a commission payment, transfer your tax percentage (25% to 35% depending on your total income) into your dedicated tax savings account. This way, the money is already there when the bill arrives.
Track your deductions
Common deductions for sales agents include:
- Phone and internet (business use percentage)
- Home office expenses
- Vehicle expenses (cents per kilometre method or logbook method)
- Computer, printer, and other equipment
- Business insurance premiums
- Professional development and training
- Marketing and advertising costs
- Accounting and tax agent fees
- Subscriptions to CRM and sales tools
End of financial year checklist
June
- Review all commission statements from your principals
- Reconcile your records against bank statements
- Compile your deduction receipts and categorise them
- Calculate your home office claim
- Finalise your vehicle usage log
- Gather any outstanding income information
July to October
- Book your accountant (or prepare your return if self lodging)
- Provide your accountant with a summary of income and expenses
- Ask your accountant about any deductions you might have missed
- Review the return before it is lodged
- Pay any tax owing or receive your refund
Working with an accountant
A good accountant who understands sole traders and commission income is worth their fee many times over. They will:
- Identify deductions you did not know about
- Ensure your return is compliant
- Help you plan for next year's tax obligations
- Advise on your business structure as your income grows
Ask other agents or small business owners for accountant recommendations. The best ones understand your business model and can proactively suggest ways to minimise your tax legally.
Using Zepys for tax preparation
If you sell through Zepys, the platform provides commission statements that simplify your income reporting. Download your annual commission summary before tax time and provide it to your accountant alongside your other income records.
The payoff
Agents who prepare for tax time throughout the year spend less than an hour pulling everything together in June. Agents who leave it all to the last minute spend days reconstructing their records and often miss legitimate deductions. The choice is clear.