Spring is the perfect time for a fresh start., Review your processes, stay on top of your record keeping and obligations, clear out any security risks and weed out issues so your small business can thrive.
Refresh your business processes
If you're turning a hobby or side hustle into a business, it's important to understand your registration requirements and set things up correctly from the start. The most common small business structures are sole trader, partnership, company or trust. Each structure has different legal, tax and reporting obligations.
The Essentials to strengthen your small businessExternal Link free online learning platform can help you understand the options and what best suits your business.
Sow the seeds for good record keeping
Make it a priority to keep records for all business income and expenses, including cash and electronic transactions. If an expense is partly business and partly private, make sure you accurately work out and record the business portion. Only claim deductions you can substantiate with appropriate records, such as receipts or invoices.
The ATO's Record keeping evaluation tool can help you understand what records you need to keep and check how well your current record keeping system is working.
Take stock of your obligations
Lodging and paying on time keeps your business on track and sets you up for success.
Common obligations include registering for GST and lodging activity statements if your business has a GST turnover of $75,000. It's a good business habit to review your turnover monthly so you understand the health of your business and you know when you need to register for GST. However, if you provide ride-sourcing services, you must register for GST from the day you start, regardless of your turnover.
Clear out security risks
Taking simple steps to protect your information, regularly reviewing your security settings and staying alert to scam activity can help keep your business safe. You can find practical information and resources on scam awareness and protecting your business on the ATO website.
Weed out issues early
Mistakes can happen, especially when you're busy running a business. If you discover you've made an error in your record keeping, reporting or payments, don't ignore it. Reach out to us as early as possible to get help or speak with a registered tax practitioner.
Keep up to date
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