Small Business Accounting Tips: Accounting Advice For Start-ups And New Businesses

April 19, 2021    accountantinperth

Are you planning to start a new business? Then, it is always important for you to check what is happening to your hard-earned finances. From figuring accounts to creating payrolls to preparing a tax return, you need to manage your money extremely well so that your business does not face unnecessary issues that may lead to dire consequences.

Therefore, you should always consider appointing a small business accountant Perth who can manage all your finances, thus giving you some relief. If you wish to take charge and get some useful accounting advice, here are some important tips on small business accounting which you may find useful.

Set Up A Separate Bank Account

This is the most primary thing to do for a business company. You should set up a separate 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 finances if done so. 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 business account will save you enough time when you need 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 in case your business is registered as a liable limited company or a corporation. If you contribute some of your personal expenses in the business or vice-versa, you should get it mentioned in the documents.

Look At A Good Bookkeeping System

A bookkeeping system involves a number of jobs like recoding transactions, keeping receipt tracks, categorization of transactions, and also reconciling bank statements. You should maintain all the financial records to get the most out of your accounting and maintain a steady cash flow.

There are various methods which you can use for 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 as well as output. Appointing a professional bookkeeper on a full-time basis will definitely cost you the most and you may not get the necessary benefits from it. Using bookkeeping software is also an option, but for that, you yourself have to oversee all the data entry and other procedures. For a new business, a bookkeeping service is the most suitable option as it saves both cost and time.

Keep All The Receipts

Even in this digital era, business operations involve a lot of paperwork. You should always keep the records of incomes like loans, revenues from sales as well as other cash infusions because these get lost quite easily. If you don’t keep track properly, you may turn up underpaying your taxes which may force you to pay penalties. Keeping receipts will extremely help you when the time of tax return will show 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 not only keep all the records but will also give you valuable financial advice for your business like budget or investment.

For every business, tax filing is a crucial yet difficult job. Most of the business owners are simply unaware of the deductions they can claim or when to pay taxes. So, keeping a tax accountant is very beneficial to get the most of your tax return. And if your business is registered for GST (when annual turnover is greater than a threshold amount), you should consider keeping a professional BAS agent Perth for preparing the necessary business account statement which you will have to submit to the Australian Taxation Office.

Establish A Payroll System

At the onset of your business, you may not need the payroll system, because there is a lesser number of employees. But, with the growth of your business, you have to employ people and subsequently give them payment at the desired time. Then you 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 new targets. At the start of each year, you should set up specific financial goals and prepare for the next year. Perfect planning and execution are two of the most important 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, then you should look at import taxes and other obligations too so that your business does not face any issue. A professional accountant can help you in this regard.

Review Insurances, Licenses And Registrations

You should always keep an eye on insurances, licenses 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 to flourish, you can always associate with Accountant Perth. You will find valuable consultations, assistance, as well as professional services.

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