Starting a new Business? Here are some of your tax considerations

Posted on March 15, 2018 by ATB Chartered Accountants

Starting a business is an exciting time. You’ve done your research and prepared your business plan, you have customers and you’re ready to start selling your product or services. Now is the perfect time to think about your tax responsibilities and set up your accounting processes.

Business structures and tax
The business structure you choose eg Sole Trader, Partnership, Company or Trust may affect the tax you’re liable to pay, asset protection and associated costs.

ATB Chartered Accountants will work with you to review your situation and determine the best structure for your requirements. As your business grows, you can revise your business structure and change it to suit your new situation or future plans.

When do your tax obligations start?
Your tax obligations start as soon as you business is up and running. To stay on top of things you should ensure that you understand what you need to do.

ATB Chartered Accountants are tax accounting professionals that can help you through the maze of tax requirements. We work with you to ensure that you’re aware of your obligations and advise you on how to meet them.

Paying tax in your first year
So that you don’t face a hefty tax payment at the end of your first year of business, there are a few options you can look into, such as :
● making tax pre-payments into your tax bill account
● putting money aside for your expected tax bill
● voluntarily entering into installments.

ATB Chartered Accountants can help you put in place a system that will work for your business and help you minimise any surprises at the end of financial year.

What tax records do you need to keep?
Keeping records is not only a legal requirement, it helps you understand how your business is performing. With good financial records you can track cash flow and monitor your business health as well as report on your financial position.

Under tax law, your records must explain all transactions and be:
● in writing, either on paper or electronically
● in English, or in a form that we can readily access and convert into English
● kept for five years (although some records need to be kept longer).

If proper records are not kept, the ATO may impose penalties.

ATB Chartered Accountants can give you the best advice on what records you need to keep and the best record keeping systems available to meet your needs.

Tax record keeping systems
To help you know how your business is going, as well as to meet your tax responsibilities, it is important to set up a good record keeping system and to start tracking your income and expenses right from the start.

ATB Chartered Accountants use the latest cloud-based accounting systems to ensure their clients have easy access to their business financials and are able to report on their income and expenses easily.

What deductions can you claim?
The types of deductions you can claim will depend on the type of business you are running and where you are running it. For home based businesses, deductions for things like rent, electricity and internet may be applicable. For businesses working outdoors, sunscreen, hats and boots may be able to be claimed.

ATB Chartered Accountants will work with you – not just at end of year time, but throughout the year, ensuring that you are claiming the correct deductions and maximising your return.

Do you have employees?
Having employees adds extra responsibilities for your business. For example, you may have to:
● deduct tax from their pay and send it to the ATO
● pay super contributions to their nominated super fund, and
● pay fringe benefits tax if you provide them with benefits in addition to their wages.

ATB Chartered Accountants are taxation specialists
There are numerous tax responsibilities you need to be aware of when you start a small business. ATB Chartered Accountants are experts in setting up your accounting processes and tax systems so that your business is compliant with current regulations.

Contact us
If you’re ready to start your business and need to know what your tax obligations are, contact us now.