Are you planning to start a new business? Then, it is always essential for you to check what is happening to your money. From figuring accounts to creating payrolls to preparing the tax return, you need to manage your cash exceptionally well so that your business does not face unnecessary issues that may lead to consequences. Therefore, you should always consider appointing a professional bookkeeper or accountant who can manage all your finances, thus giving you some relief. Here are given some essential tips on small business tax and accounting, which you may find helpful.
Set up a separate bank account
This is the most primary thing to do for a business company. You should set up a different bank account for your business. If you’re a sole trader, you need not open one, but it will be a lot easier to handle finance. You can consult with several banks to get the necessary information like fees, interests, benefits, etc. that each bank offers and then go for the opening. Having a separate banking account for business will save you enough time to calculate various deductible business expenses.
Apart from an account, you should also maintain a business credit card because that will limit your legal exposures to business debts if your business is registered as a liable limited company or a corporation. If you contribute some of your expenses in the business or vice-versa, you should get it mentioned in the documents.
Look at a sound bookkeeping system
A bookkeeping system involves several jobs like recording transactions, keeping receipt tracks, categorization of commerce, and also reconciling bank statements. You should maintain all the financial records to get the most out of your tax and accounting and maintain a steady cash flow. There are various methods that you can apply to do bookkeeping.
You can use good-quality bookkeeping software, a bookkeeping service, or appoint a professional bookkeeper. Each of these ways offers both advantages and disadvantages in terms of cost, time, and output. Establishing an experienced bookkeeper on a full-time basis will cost you the most, and you may not get the necessary benefits from it. Bookkeeping software is also an option, but you have to oversee all the data entry and other procedures. For a new business, a bookkeeping service is the most suitable option from the point of both cost and time.
Keep all the receipts
Even in this digital era, a business involves a lot of paperwork. You should always keep the records of incomes like loans, revenues from sales, and other cash infusions because these get lost quite easily. If you don’t own the track properly, you may turn up underpaying your taxes, forcing you to pay penalties. Keeping receipts will immensely help you when the time of tax return shows up.
Consider hiring a professional, even if temporarily
Be it new, you will always want your business to remain healthy and grow exponentially, right? Then, as the owner, you should always think of appointing a professional accountant or a bookkeeper who will keep all the records and give you valuable financial advice for your business like budget or investment.
For every business, tax filing is an essential yet challenging job because most businesspersons are simply unaware of the deductions that they can claim or when to pay taxes. So, keeping a tax accountant in Perth is very beneficial to get the most of your tax return. And suppose your business is registered for GST (when annual turnover is more significant than a threshold amount). In that case, you should consider keeping a professional BAS agent for preparing the necessary business account statement, which you will have to submit to the Australian Taxation Office.
Establish a payroll system
At the very start of your business, you may not need the payroll system because there are significantly fewer employees. But, with the growth of your business, you have to employ people and subsequently give them payment at the desired time. Then you will feel the importance of payroll processing and then have to establish a payroll system. The payroll system will not only allow you to pay your employees correctly but will also help you in withholding taxes. You can keep an accountant for this purpose. Or you may use any payroll software that may automate your services, thus saving enough time.
Determine payment methods
You must figure out which payment method you should offer to your customer. Apart from debit or credit card payment, you may keep other online payment methods like PayPal or Apple Pay. But you should keep in mind that whenever customers use these payment services, some amount will be deducted. This may sound quite disheartening, but this is the standard by which everyone works and trusts the services.
Update business and market plans
This is an ever-changing world, and to keep your business running, you should always look at your business system each year. You should review your previous year’s report to see if you could reach your goals, thus setting your eyes on fixing a new target. At the start of each year, you should set up specific financial goals and prepare for the following year. Perfect planning and execution are two of the most influential small business accounting tips to keep a healthy business, and you should never ignore them.
Investigate overseas taxes
This is not so important for a new small business, as it takes a lot of time to expand a business to overseas markets. But, if there is a possibility, you should look at import taxes and other obligations too so that your company does not face any issues. A professional accountant in Perth can help you in this regard.
Review insurances, licenses, and registrations
You should always keep an eye on insurances, permits, and various registrations to see when they get expired, and you need a new one.
In the end
To know more about accounting tips that may help your small business flourish, you can check on the internet. You will find plenty of search results there. But for expert assistance and professional guidance, it would be imperative to get in touch with Accountant Perth.