Hello! When I started my own small business, I didn't really give much thought to how I would pay tax. I mean, I realised that I would have to pay tax at some point, I just didn't understand when I would have to pay it or how much I would have to pay. I tried doing some research, but I soon discovered that tax is a very complicated business. One day, I got a letter from the tax office asking me why I had not filed a tax return for the previous year. I panicked and contacted a tax service. The tax service was great. The staff looked at my accounts and calculated exactly how much tax I would need to pay. This blog is all about the benefits of using a tax service.
An increasing number of people across Australia are planning to forsake the 9-to-5 grind and set themselves up with their own business venture. This is a very important part of the Australian economy and can provide plenty of opportunity to the enterprising individual. While there are exciting times ahead if you choose this path, you have to ask yourself some very serious questions first. Otherwise, you could make some key mistakes that could cause issues down the road. What should you be thinking about?
Cash Flow First
In a new business, it is all about the cash flow and there is a reason why accountants refer to this as "lifeblood." You may want to concentrate on sales figures and keep an eye on your expenditure, but you have to know exactly when the money will arrive in relation to those outgoing checks. If you don't, there is a risk that you could run out of money at the bank at a crucial time.
Be Careful with Accounting
New business owners often overlook the need for accurate record keeping. Certainly, they may invest in a software package online, but it's a good idea to get a qualified accountant to keep an eye on everything. At the least, make sure that you take all your books and records to the accountant before tax time arrives.
It's a Team
Indeed, an accountant should be only a small part of your advisory team, just to make sure that you get everything right in legal and taxation terms. Make sure that you are also generating contracts that are watertight, in case something should go wrong.
How Is Your Crystal Ball?
Do you have a clear vision of the future? You may think that you have a unique service or product to offer, but have you done the right amount of market research and have you created your projections properly? Often, an accountant and financial adviser can bring you back down to earth when needed, so that you don't overestimate sales and underestimate the competition.
Keeping Things Separate
Lastly, make sure that you separate your business and your personal affairs as much as possible. Some people will set up simply as a "sole trader," while others will look for additional protection by incorporating the business. Either way, a clear delineation is important, so that any business failure or problem does not impact on your family finances.
Getting Advice
To get a clear picture of what is ahead, it's a good idea to consult with a qualified accountant before you open your doors for business.
Share9 October 2017
