Do you need advice on starting a small business? We’ve compiled a 7 point checklist to help you get started and cover your bases from a financial and taxation standpoint.
Each and every day Stellar Accounts provides consultations to people on the cusp of launching their own business (and those with existing businesses) – and we can help you to. Request a 1:1 business consultation here or call us.
Small Business Checklist
Here’s the things you should know:
1. Starting a small business? Make sure you get an ABN!
2. If your sales are $75k and over? You must be registered for GST and prepare a monthly or quarterly Business Activity Statement (BAS).
You can voluntarily register for GST if you are under the $75k threshold, and you can then chose to lodge your BAS monthly, quarterly or annually – whichever suits your cashflow.
3. Set financial goals and targets each year.
Yes a budget. That way you can monitor your actual results against your expected income and expenses and make adjustments as necessary – don’t get to the end of the year and then work out what your income and expenses are, track them regularly.
4. Make sure you speak to an accounting advisor BEFORE you start your business
To make sure you have the correct business structure, understand your tax and GST obligations etc – it pays to get the right advice upfront! Stellar Accounts offers in office and phone consults from $75 for 45 mins. Request a consult here.
5. Keep Records
Make sure you keep records of all income earned and all money spent – keep your receipts in hard or soft copy – use accounting software, excel spreadsheets, whatever is easiest for you to manage your record-keeping – but remember, no receipt, no tax deduction.
6. Keep Logs
Keep a log of the kms related to any business related travel, time spent working from your home office on business, internet and phone usage for business purposes – all these things are useful when preparing your income tax return and are things the ATO will be looking for to support your deductions.
7. Employing Staff?
Check with Fair Work to ensure you are paying them as per the award. Determine if you want to employ them as a casual, part-time or full-time worker.
Ensure you register with the ATO for IT Withholding – you will need to submit tax withheld from employee pays to the ATO quarterly or monthly; superannuation will need to be lodged quarterly.
Remember ALL staff are to receive 9.5% superannuation, unless they are under 18 yrs (based on hours worked).
Make sure you obtain all employee details and have them complete a Tax File Declaration which needs to be submitted to the ATO.
Payslips need to be given to employees each time they are paid – look into using an online payroll system to assist you with payroll functions.