Starting a new business can be overwhelming, there is so much to do and not all of it is within your skill set or interests. We find many new business owners struggle with getting a system in place for their accounting and this can cause big headaches down the track. So we have put together a list of areas that you need to put in place early to ensure that your finances run smoothly. #startup #startupadvisor
1. Open a Bank Account
On day one of your business make sure you open a business bank account in your business name. This helps keep business money separate to yours. Having a clear and clean separation can help with the book keeping and assigning income and expenses.
2. Track your expenses
Make sure you are capturing all of your expenses. Preferably not with a fistful of receipts in a shoe box! Have an excel spreadsheet or use a cloud software such as Xero that allows you to record all your expenses and even photograph your receipts and attach them to the file. This makes it exceptionally easier for your book keeper or accountant to view later. #sydneyaccountants #startups #startupnews
3. Develop a Bookkeeping System
You can’t put your head in the sand for this one. You may not have made any money yet but having a system in place ensures that you have good practices right from day one. Sit down at the end of each day or week and enter in your receipts. Have somewhere that is easy to access where you keep your receipts or scan them and upload to the cloud. #accountingsydney #businessaccountants #sydneyaccountingfirm
4. Set up a Payroll System
Paying employees wages, dealing with their tax owing and superannuation is pretty complex. The ATO aren’t overly forgiving if you get this wrong (and neither will your employees). Using a cloud system for your accounting such as Xero often includes a payroll system to help ensure you are following all the legal requirements when it comes to payroll. #sydneyaccountingservices #charteredaccountants #ato
5. Investigate Import Tax
If you are importing goods then you may be required to pay importing tax. You want to know this upfront as this may affect your pricing strategy and you don’t want an unexpected or unplanned bill! #startupsydney #startups
6. Determine how you’ll get paid
Have you thought about how you will draw funds from the business? Some of this might be determined by the structure in which you are operating. If you are unsure then check with your accountant on the best way to structure this.
7. GST
Are you required to collect GST? Make sure you understand your obligations around GST and have a system set up that allows you to easily collect and report on GST paid to you and GST you pay. Remember that if you collect GST you can also claim GST credits for GST that your business pays.
Do you have any doubts?
If you are unsure about any of these items we suggest talking to one of our specialised business accountants. It is really important to get some of these areas right and it is much easier to get them right at the beginning rather than having to clean up a mess later.