If you’re a mum, you understand the idea of nurturing something to help it grow and reach its full potential. Well, this is also one of the key character traits of a successful small business owner!
To achieve success you want to avoid financial pressure that could see the whole structure crumble.
Here are some basic tips for keeping your small business finances in check and set up for long term success.
When it comes to staying friendly with the ATO, it’s important not to get overwhelmed. Yes, they want you to pay their debts but they are also sticklers for things happening on time – every time.
When it comes to lodging your BAS and tax returns, even if you don’t have the money to pay for it right away, lodging it on time is critical. It will help you avoid late lodgement fees and, by talking to your accountant or bookkeeper, you can negotiate a payment plan to help manage your debts.
It’s when you don’t lodge the paperwork that they get particularly uptight so to keep them on side, keep your paperwork up-to- date and talk to your bookkeeper or accountant about creating a budget so your payments can be delivered on time, without accruing mountains of debt
If you’re borrowing money from your personal funds to keep your business afloat, it’s time to have an honest conversation with your trusted accountant. Your business needs to succeed – but not at the cost of your personal assets and family lifestyle.
If cashflow is not great and you have more money going out than what is coming in, do an honest appraisal of your business potential and work out ways to improve your bottom line – or know when it’s time to try something new.
Do I really need an accountant? Is a question many small business owners ask. But to help your business succeed, it’s important to choose a professional accountant who understands your needs and all the necessary ATO compliance and obligations.
That doesn’t mean hiring an accountant is something you can ‘set and forget’. By being involved in your business and having regular meetings with your accountant, you’ll stay in control – and ensure they are doing the right thing for your business. Horror stories become business nightmares when slack business owners trust everything to their accountant – then find out that things have not been done the right way, leaving them liable for debt, penalties and legal issues.
Registering a business name is not enough. To make the most of your money, talk to your accountant about the best possible structure to minimise your tax obligations, It might be a company, or Family Trust. It depends on your circumstances and goals. If you enter into a partnership, be sure you understand all the potential ramifications. What might seem like a great idea now, may turn out to be a massive headache down the track.
If you’re not sure about the best way to manage the finances in your business, talk to business people you know and trust for recommendations to an experienced accountant who suits your business.
Business works best when you surround yourself with experienced professionals with unique skills that add to your business.
You can’t do it all alone and it’s important to recognise that so you can focus on what you do best, while outsourcing certain tasks to people who can improve your business with their specific knowledge and essential business skills.
We’re here to support you and we’re stronger together. Join the Mums & Co Tribe here and get your business exposure in our Member Directory. Join us here.