Thinking of starting up a business?  More and more people are creating businesses of their own and taking control of their lives.  There are start ups popping up all over the place and it’s great to see.  We all want to be successful however, being successful takes more than creating a business plan, getting the website and social media up and running and selling your services or products.

There is a great deal to consider when starting your own business.

  • Registering a business name
  • Ensuring private expenditure is separate from business expenditure
  • Applying for an ABN
  • Deciding if you need to register for GST
  • Knowing what you can claim against the business
  • Keeping log books to ensure your Motor Vehicle claims are legit
  • Making good use of the incentives such as ‘Instant Asset Write Offs’
  • What accounting package is best suited to your business

The list goes on………………………………………

It could be that you are on top of all of this and have a handle of every aspect of your business however, maybe there are areas that you are unsure of and are in need of some advice and guidance.

Bookkeeping is crucial for business success.  Cash flow is the true heart of any business and can make or break you depending on how it is managed.

Remember the following and you will be off to a good start;

  1. Invoice on a regular basis.  Put aside time for this task alone.  Your cash flow relies heavily on your invoicing.
  2. For any large jobs that may go over a long period of time it is wise to send out ‘progress payments.  This will ensure that your cash flow stays healthy and will also make it easier for the customer rather than trying to pay a large amount all at once.
  3. Get everything in writing!  Do not rely on memory alone.
  4. Follow up your debtors and do not let any debts go outside of your trading terms without a phone call.
  5. Keep a good track of what you are spending. 
  6. Carry out bank reconciliations on a weekly basis.
  7. Remember if collecting GST for the ATO it is not yours to spend.  Banks are more than happy to offer ‘fee free’ accounts for the keeping of any GST collected.  This will keep you worry free knowing that every month or quarter the money is there to hand over to the ATO.
  8. Look over your accounting reports on a monthly or quarterly basis and track your business closely.

Being a business owner can be fun.  It is meant to be fun and enjoyable as you go about your days doing what you do best.  The freedom and control that if offers makes for a great lifestyle if managed correctly and nothing is left to chance.