Getting ready for business

The ATO advises new business owners that they need to understand their obligations to ensure they are "getting it right from the start."

These are the 'top 7 things' taxpayers need to know when starting a business.

• They should use digital tools and maintain accurate records to help them manage daily activities and cash flow.

• There are some registrations they will need to complete when they start a business (for example, registering for an ABN or a business name).

• They can claim a tax deduction for most business expenses if the expense is directly related to earning their income.  Taxpayers should remember to keep records and only claim the business portion of mixed-use expenses.

• The type of business structure they set up will affect their tax and registration requirements, so they need to choose the right business structure and understand their obligations.

• If they are an employer, they should realise that they have extra responsibilities and obligations (e.g., super guarantee and Single Touch Payroll).

• They need to lodge and pay their taxes on time.  They can prepay their estimated income tax liability through PAYG instalments.

• Businesses that maintain accurate records, lodge and pay on time and avoid errors not only steer clear of penalties and general interest charge but also become more resilient when facing challenges.

Please contact our office if you would like to discuss how we can assist with new business matters.