How to Start a Business
Starting a business is simultaneously an exciting and stressful time. There is a lot to do before you even open your doors for business.
Do you know what you need to put in place before you begin? What structure will you use? What software do you have? Will you have enough cash to see you through if things don’t go as planned? Will you be protected should things go pear shaped?
Every new business needs good bookkeeping, accounting and records to satisfy your requirements with the Australian Taxation Office (ATO) and with Australian Securities and Investments Commission (ASIC) requirements.
Before starting a business, you need to decide which Accounting system you are going to use to run your business. Will you be operating under a cash or accrual system? Which of these two systems will work best for you and ensure you meet your GST obligations in a timely manner? If this is all new to you, please seek the advice of a qualified Accountant. Mistakes made at this point will often cost more to fix then if they had been set up correctly in the first place.
You need to set a realistic projection for your expenses, assets, budget, and cashflow forecasting. Your Accountant will help you to detail your potential cash flow and quickly analyze if you have enough resources to manage your business over the first year. Entrepreneurs and first-time business owners tend to be optimistic when estimating their revenue and fall short in determining all the costs associated with running a business.
Importantly, you need to decide on your business structure.
And while you may have a good idea of what you need to get set up, meeting with a professional accountant will put you on the best path. We know the right questions to ask and how to set you and your business up for success.
One thing often overlooked is the importance of developing a bookkeeping system with your accountant. Bookkeeping is the process of recording and categorising daily transactions and reconciling bank statements. This system helps you stay on top of your business needs and requirements each week. Waiting till the end of the quarter or year to sort out your paperwork is costly, time consuming and potentially damaging to your business. Daily bookkeeping also streamlines your accounting, makes sure your taxes are paid on time and cashflow remains steady.
Come in and speak with Nathan our local Springwood Accountant about starting a business. Learn how you can leverage his expertise to keep your new business running smoothly.