Starting a small business in Australia is an exciting yet challenging journey, and getting your finances right from the start is crucial. At SKD Accountants, we specialise in helping new businesses establish a strong financial foundation. Below, we share our top accounting tips to ensure your business starts off on the right foot.
1. Separate Your Business and Personal Finances
Opening a dedicated business bank account is one of the first steps every entrepreneur should take. This keeps your business expenses and personal spending separate, ensuring your financial records are clear and accurate. Not only does this make tax time easier, but it also helps you avoid mixing personal liabilities with business obligations—a common issue for many new business owners.
2. Choose the Right Business Structure
Whether you decide to register as a sole trader, a company, or a partnership, the structure of your business has long-term tax and legal implications. At SKD Accountants, we help you understand the advantages and disadvantages of each structure to ensure you make an informed decision that best suits your business and tax needs.
3. Invest in the Right Accounting Software
In today’s digital age, leveraging cloud-based accounting software like Xero, MYOB, or QuickBooks is critical. These tools automate invoicing, payroll, and cash flow management, saving you time and minimising the risk of errors. At SKD Accountants, we guide our clients in selecting and setting up the best software for their specific needs.
4. Understand and Fulfill Your Tax Obligations
Taxation can be one of the most complex aspects of running a small business in Australia. Whether it’s registering for GST if your turnover exceeds $75,000, or managing your BAS (Business Activity Statement) and PAYG (Pay As You Go) for employees, having a clear tax strategy from the outset is essential. We at SKD Accountants provide tailored tax planning and compliance services to ensure you stay on top of your obligations and maximise deductions.
5. Effective Cash Flow Management
Cash flow is the lifeblood of any small business. Monitoring your inflows and outflows on a regular basis helps prevent cash shortages, which are one of the leading causes of business failure. Use accounting software to track your cash flow and forecast future expenses. At SKD Accountants, we work with you to create a cash flow plan that ensures your business has the funds it needs to thrive.
6. Keep Accurate and Up-to-Date Records
Good record-keeping is not only a legal requirement but also a smart business practice. From tracking expenses and receipts to recording sales, maintaining organised financial records helps you make informed decisions and prepares you for tax season. At SKD Accountants, we help you set up efficient bookkeeping systems that simplify this process.
7. Plan for Taxes Early
Tax planning shouldn’t be something you scramble to do at the end of the financial year. By working with an experienced accountant like SKD Accountants, you can plan ahead, ensuring that you’re prepared to pay taxes without any surprises. We’ll help you forecast tax liabilities and set aside the necessary funds to avoid cash flow disruptions.
8. Seek Professional Guidance
Hiring a professional accountant early in your business journey can save you time, stress, and money in the long run. SKD Accountants provides expert accounting and advisory services tailored to the unique needs of small businesses in Australia. From compliance and tax advice to financial planning, we’re here to help you succeed.
Why Choose SKD Accountants?
At SKD Accountants, we understand the challenges that come with starting a small business in Australia. Our goal is to provide personalized, practical financial advice to help your business grow. We pride ourselves on being more than just accountants—we are your business partners, helping you navigate the complexities of finance so you can focus on what you do best.
Contact SKD Accountants today to schedule a consultation and discover how we can support your business from day one. Whether you need help with tax planning, bookkeeping, or cash flow management, we are here to ensure your financial success.