1. Keep good records – it is important that you have a system in place to record all your income and expenses – keep your receipts and invoices in a secure place – use a folder, a filing cabinet etc.
2. Make sure you understand what are business deductions – you don’t want to be missing out on claiming those business deductions which will reduce the amount of tax you have to pay to the pesky ATO
3. Use whatever recording system you like to record for income and expenses – an excel spreadsheet, cash book, accounting software – it doesn’t matter how you record it, just record all your income and all your expenses.
4. Get advice and assistance as necessary – yes it will cost you money to obtain advice, but not as much as it will cost you to fix up errors which could have a direct impact on your business going forward.
5. Set a budget to track your income and expense expectations for each year – otherwise how will you know if you are making a profit or running at a loss?

For me it is important that every business owner knows what their profit or loss is, so that you can manage your cashflow on an at least monthly basis.  I often hear from my clients that they have no idea whether they have made money or not on their business when they come to see me to get their tax returns done.

A good understanding of your business finances can be the difference in whether your business succeeds or fails – put good structures in place and you can’t go wrong!

Stellar Accounts – servicing Brisbane North individuals and small businesses with tax, accounting and bookkeeping assistance.