Here are some useful accounting tips for your business. So that you can avoid some common mistakes.

Accounting Tips For Your Business

When you start a new business, the last thing on your mind is accounting and tax. And you are right. Your focus needs to be on the road ahead.

But your numbers are still important. You lose control without them. The good news is that this is not as hard as it sounds. Here are 14 tips to help you get and keep what is yours. And avoid a few potholes along the way.

1 – Put a Value on Your Time

You only got 24 hours. And what you don’t do in those is just as important as what you actually do. So delegate the parts that are not worth your time. 

2 – Get Xero

There are various accounting softwares around, but just go with the flow and get Xero. You will be glad you did.

3 – Use a Receipt App

You need a receipt to claim a tax deduction. To make this easy, download and use the Hubdoc app – free with Xero – or sign up with Receipt Bank.

4 – Get a Bank Feed

A bank feed will save you time. Allowing you to focus on more important things. Ask your accountant to do it for you if this feels daunting.

5 – Get a Business Bank Account

Using one bank account for business and private will very quickly turn messy. So get a free business bank account from NAB or the like.

6 – Register for GST on time

Register for GST as soon as your projected GST turnover exceeds $75,000 to avoid being liable for the GST you didn’t charge.

7 – Treat Employees as Employees

It is tempting to treat your employees as contractors, but you risk charges and penalties. So just treat them as the employees they are.

8 – Pay SG and Wages On Time

The ATO is really tough around your employees’ Superannuation Guarantee (SG). So pay their SG and wages first when cash flow is tight.

9 – Get Works Insurance

Easy to miss but make sure your employees are ensured while working for you. Might save you a lot of money later. So get the right policy from icare.

10 – Lodge And Defer

Start well and lodge your tax returns on time. If cash flow is tight, ask your accountant to get a payment plan and later on a remission of interest. 

11 – Safeguard Your Losses

Your company’s current tax losses might safe you tax later on. Might. Ask your accountant before you change your company’s shareholders.

12 – Weigh Up ATO v Bank

The ATO charges a lot more interest than a bank. But is also more likely to forgive this interest for a good reason. So weigh up ATO v bank.

13 – Mind the PSI Rules

Be mindful of the rules around personal services income (PSI) if your business depends on your personal skills and efforts. 

14 – Claim Car and Travel Expenses

When you use a car or travel for business or work, make sure you claim your expenses. But there are a lot of tricky rules, so please read more.

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If you follow these 14 accounting tips for your business, your accounting will help you grow without hitting any potholes. But of course this is only a very short overview. Just call me if you want to talk this through. My number is 0407 909 779 – Heide.

 

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Disclaimer: numba does not provide specific financial, legal or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax or legal advice when considering whether the information is suitable to your circumstances.

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Last Updated on 25 March 2020