Starting a New Business?

When you start a business, there are tax and super responsibilities you need to be aware of, including:

  • the tax implications of your business structure
  • whether you’re entitled to an ABNExternal Link  
  • registering your business
  • records you need to keep
  • deductions you can claim.

Before you get started there are a few things to consider

  • when your tax and other obligations start – this will depend on whether you are in business yet
  • the implications of the structure you choose – tax and legal
  • the location of your business (such as working from home)

There are four commonly used business structures in Australia:

It’s important to understand the responsibilities of each structure because the structure you choose may affect:

  • the tax you’re liable to pay
  • asset protection
  • costs.

You’re not locked into any structure and you can change the structure as your business changes or grows.  If you’re unsure which structure to choose, it is recommended you talk to your tax, business or legal adviser.

Record keeping for Small Business

Good record keeping is essential for anyone in business because it makes it easier to manage your cash flow, meet your tax obligations and understand how your business is doing.

What the law requires

By law your records must:

  • explain all transactions
  • be in writing (electronic or paper)
  • be in English or in a form that can be easily converted
  • be kept for five years (some records may need to be kept longer).

If you don’t keep the right tax records, you can incur penalties. 

If you have a qualified bookkeeper, you can get the best advice on choosing a system that is right for you.  This is something we can help you with.

Contact a Bookkeeper.  Located in the Hawkesbury area. 

 

2018-09-22T13:16:10+00:00 August 29th, 2018|Bookkeeper, Financial, Taxes|