Taking the leap into starting your own business can be exciting! You have the opportunity to be your own boss, set your own working schedule, and take responsibility for how your business is run.
However, it’s important to ensure your business is set up and structured correctly so you can hopefully avoid problems later. If you’re thinking about starting your own business, here are some things to work through before you launch:
Accounting Advice
It’s common for many people to forgo meeting with their accountant before launching a new business enterprise, certainly to ensure your business finances are in order. Yet taking the time to speak with your accountant before you get started can help you in more ways than you might expect.
Your accountant will discuss a range of things you need to consider, including structure, taxes, bookkeeping, legal obligations, and asset protection. Let’s look at some of those things in a bit more detail.
Business Structure
Will you run your new business as a sole trader? Perhaps you’re thinking about entering into a partnership with another person. There’s also the option of operating under a trust structure, or even as an incorporated company.
Your accountant can offer advice about the right business structure to suit your plans. Even if you’re buying into an established business or a franchise opportunity, it still pays to check that your structure is correct.
Tax Planning and Tax Minimisation
Your accountant can help you determine ways to minimise the amount of tax you pay in your business. Likewise, there are some things you can do throughout the year to plan for taxes in advance.
When you work with your accountant’s recommendations, you reduce the risk of paying more tax than you need to.
Legal Obligations
Running a business comes with some legal obligations too. Things like hiring staff, workplace safety, taxation compliance, and a range of other things need to be discussed with your accountant to be sure you’re not overlooking anything important.
Ongoing Accounting Needs
Once your business is up and running, you will still have plenty of ongoing accounting needs. Regular bookkeeping, invoicing, managing your accounts payable and receivable, paying salaries, making super contributions for your staff, reporting on your BAS, and keeping up with tax obligations can be time consuming.
However, your accountant or a provider of bookkeeping services can help you manage your ongoing accounting needs far more effectively. When you automate many of the accounting and bookkeeping processes, it keeps you free to keep running your business and earning more profits instead.
If you’re ready to take the leap and set-up your own business, make sure you do it right!
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