An accurate business start-up process is essential to ensure that your business brings you the
maximum reward for your efforts; both financially and personally. Because you are serious about the success of your business, seeking the advice of an accountant (sooner rather than later) is an integral part of a smooth and successful business journey.
A poorly planned and implemented start-up often ends up costing the business owner significant additional expense. There is the potential for lost profit, professional fees to amend the setup, legal issues, increased tax liability, correction of processes and book keeping data entry, and more. It can easily turn into a disastrous tangle which may cost thousands (often multiple thousands) to untangle.
The best time to talk with an accountant is when your idea has started to take some form, but not too far progressed. Here are some things to consider:
Sometimes the dream starts with other family members, or around the table with friends. With extra finances available, business may start-up faster. However, if you are going into business with friends, family, or other business entities, we can advise you regarding potential benefits, and risks which are associated with it, and advise on the options available to help you reach the best outcome.
Creating a business plan and budget might seem dry, but remember that they are an essential part of you gaining the most enjoyment and success from your business. When well planned, the financial side of your business will bring you less concern, so you can do what you do best! When you visit with us, bring all information regarding your current financial position and our accountants can assess the current financial feasibility of your business idea, and help start planning your business financial success.
Naturally, you’ll need a business name. But there are rules around what you can or can’t call your business. And what goes ‘behind’ the name? We consider whether your business is best structured using a Trust, as a Company (Pty Ltd), or simply a trading name? And all businesses need an ABN (Australian Business Number). If you have employees, there will be superannuation and workers compensation to consider as well. We can prepare a Package according to your needs and guide you through all these things, at the right time.
Something as simple as a separate business bank account can make your life easier, more efficient, and in the end will be less expensive to operate. It saves time and effort to keep your business money separate from your personal finances. This will require a separate bank account, possibly a credit card or debit card, and in this day and age most certainly electronic banking. You will need to have registered your business name, and have your ABN before setting up your bank account. At Outcome Accounting, we check our clients are well prepared with a Package of all relevant documents before they visit the bank, making the process of opening an account as smooth as possible. We can even work with your bank to make sure you have the best setup for your business.
Compliance accountancy is the accounting which assists you to ensure you are addressing all the rules and regulations associated with being in business. What we do is not just about reporting what happened in the past in your tax returns. That is a small part of what we provide to our clients. Addressing legal requirements from Day 1 of business will save you time and effort (and fees) throughout your business life. Our accountants can assist you to start as you mean to continue. Scott Lindqvist (our Principal) always asks “do you climb a mountain with your climbing shoes in your backpack just in case you need them or do you put them on before you commence the climb?”
Historically, bookkeeping (or keeping track of the money coming in and the money going out) was done in ledger books. It is unlikely you’ll choose that option. But what business software will be best for you? There are many options, and choosing the most appropriate one at the beginning will save you money and effort. At Outcome Accounting, we encourage Xero as our cloud-based accounting software of choice. This means you can keep up with your finances on the run; on your tablet, on your phone. You can balance your books every day, pay employees superannuation, send clients invoices, all over a cup of coffee at the coffee shop if you like.
We take new businesses very seriously, and gain great satisfaction out of helping people ‘do it right’. This way you can move on with what matters most to you – growing your business.
Call us for a complimentary introduction meeting. 08 8239 1143