Being the boss can be exhilarating. But there are also significant risks to going out on your own, and unfortunately the failure rate of small business is high.
The old saying, “No one plans to fail, but many fail to plan,” is particularly applicable to the new business owner.
Comprehensive financial planning generally involves tax planning, risk management, investment planning, retirement planning and estate planning.
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 ABN
- registering your business
- records you need to keep
- deductions you can claim
The Australian Taxation Office has some useful information aimed at people considering starting a new business. They offer advice on how to start, getting up and running, reporting and paying tax, and supporting your small business.
That being said, when it comes to financial planning for the small business owner, the do-it-yourself drive that helped you start your business will not serve you well when it comes to managing the many financial issues associated with running a business.
Tax is a good example. You’ve probably always filed your own tax returns. That may have been fine and simple enough before, but being a business owner comes with many tax implications and benefits. It’s a guarantee that your taxes will never be as simple as they once were, so it is best to consult a professional.
Expertise, such as that offered by Johnson Accounting, often becomes necessary, and can make all the difference in improving your chances of business success. We can help you to prepare your annual tax returns, give you tax planning advice, and other business advice.
Get in touch with us if you’re thinking of starting up a small business and we’ll help you start off on the right track, benefit the most from your business and avoid tax pitfalls.