Being in business can be overwhelming, however, if you get help and advice along the way it can save you time, stress and contribute towards your success in the future.
DO YOU NEED TO:
- Register for an ABN?
- Claim GST?
- Lodge a BAS?
- Have a payroll?
- Have an inventory?
- Use Eftpos facilities?
- Use cash or accrual basis?
New business owners will be faced with the above questions and much more, these questions will also help in the decision of which accounting software to use.
Cash or accrual? Income and expenses are recognised at the time they are received or paid when using cash. Accrual means income and expenses are recognised when the transaction occurs even if the cash hasn’t gone into or out of the bank yet.
- Keep invoices and receipts easily accessible, for example, labelled folders. There are apps available so they can be stored in phones now.
- Keep all bank statements, stock records, compliance and government correspondence and anything of monetary value for record keeping.
- Allocate time weekly to keep these records up to date otherwise, it can overwhelm you.
- Have an understanding of GST, income tax, payroll tax and BAS and be aware of reporting dates for ATO payments and instalments.
- Keep all records for a minimum of 5 years.
If this is at all confusing, find a bookkeeper to help you. Make sure to shop around and find a bookkeeper who suits you and your business. Look for someone who will listen to you, and make sure they are reliable, independent, honest, accurate, skilled and understands your business needs (HINT: Bookkeepers love chocolate).