Accounting Tips for Your Business
Avoid some common mistakes with these 15 accounting tips for your business.
15 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 15 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 is as important as what you 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 – Collect Receipts
Missing receipts can cost you a lot of money later on. So best to stay on top. Just download Hubdoc – a receipt app that comes free with Xero.
4 – Get a Bank Feed
A bank feed will save you time and give you up-to-date numbers. Allowing you to focus on more important things.
5 – Get a Business Bank Account
Using just one bank account for both business and private turns messy very quickly. So get a free business bank account – for example with NAB.
6 – Register for GST on time
Register for GST when your forecasted turnover exceeds $75,000. The good news is that you get to claim the GST you pay.
7 – Treat Employees as Employees
Treat your employees as employees. It is tempting to treat them as contractors, but not worth the penalties and headaches.
8 – Pay SG and Wages On Time
The ATO is really tough around your employees’ super. So pay their super and wages first when cash flow is tight.
9 – Get Workers Insurance
Easy to miss but make sure your employees are ensured while working for you. So get the right policy from icare – might save you tons later.
10 – Lodge And Defer
Lodge your tax returns on time, even if your cash flow is tight. And then let’s talk to the ATO about a payment plan and remission of interest.
11 – Safeguard Your Losses
Your business’ tax losses might safe you tax later on, but are also easily lost. Please call me before you change your business structure.
12 – Weigh Up ATO v Bank
The ATO charges higher interest rates than banks. But is also more likely to forgive this interest for the right reasons. So let’s talk this through.
13 – Mind the PSI Rules
If your business depends on your personal skills and efforts, let’s discuss the personal services income (PSI) rules to avoid any potholes.
14 – Claim Car and Travel Expenses
When you use a car or travel for business or work, make sure you claim what is yours. Easy to leave money on the table with this one.
15 – Get and Keep What is Yours
There are many ways to save tax and make you better off. From discounts and conscessions over deductions and write offs to grants and structures. Make sure you get and keep what is yours.
This is just a short overview. Please call me to talk this through.
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 17 August 2020
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We look after the tax and accounting of your business, wealth and SMSF. We are Chartered Accountants and Registered Tax Agents in Australia and IRS-registered CPAs in the US.