Talking Cents

Start your motors small business!

When you get in your car do you start driving and then, once moving, worry about doing up your safety belt, checking your mirrors and working out where you are going? Hopefully, like most cautious drivers you would do all of those things before setting off.

So why is it that so many of the new small business accounting clients that are coming to us for assistance have already started a small business without first working out where they are going, how they are going to get there and what safety nets have been put in place?

Sure, you may have had a great idea that you were so passionate about getting off the ground and into practice that you just took off, not quite knowing where you were going or how to get there. Of course, once you are underway you will inevitably come across unexpected situations that you will struggle to face on your own. You may be a real expert in your chosen field, but that isn't going to help you deal with the taxman or the mountain of paperwork that is now blocking your way forward.

Without being biased here, the current obligations/burdens on small business in terms of ATO payments and reporting, insurance requirements, and the complexity of choosing the proper legal structure make it an essential requirement of anybody starting a small business that they seek out the right advice. Getting the right legal and accounting advice BEFORE starting your small business can prevent so much unnecessary anxiety regarding the unknown obligations of a small business owner. In our vast experience, the costs of getting an existing business up to date almost always far exceed the costs that you would have expended if the right support had been enlisted from the beginning. I'm not just talking accounting and legal fees here, the potential penalties and interest charges that the ATO may impose on you can be quite a shock for a small business owner.

Accountants and solicitors aren't just there to get you out of trouble and tell you how much tax you have to pay, the real value is in sitting down and discussing your small business requirements, the areas where you are struggling and how we can assist in streamlining as much of the administrative processes as possible. Speaking personally, a qualified, experienced small business accountant will provide many great insights into aspects of your business, not just tell you how much tax you have to pay.

So the message for today is not about promoting our own profession here, but imploring you to seek out the experience of a trusted group of professionals, including but not limited to accountants, solicitors, marketing and IT experts who can help you to not just meet your taxation and legal requirements but to see your business seize opportunities and maximise its potential. You are then free to focus on your real passion and the heart of your business.