When starting out it is important to arm yourself with as much knowledge as you can. This includes the general details about your own business, the industry you are operating in, your customers and competitors. However, also of great importance is a basic understanding of what could potentially lie ahead from a taxation and financial point of view.
Here are but just a few things to consider for start-up or relatively new businesses:
Whatever your situation, a business with a swelling bottom line is fantastic, but can bring with it some nasty and unexpected tax and cash flow surprises if you aren’t prepared and aware of what lies ahead.
Start-up businesses need to be mindful of potential tax bills after the end of the first financial year of operation, and budget their cash flow accordingly.
Cash flow can become more problematic for new businesses as the ATO can require up-front payments for estimated current year tax liabilities (through the PAYG Income Tax Instalment system). At the same time the business is required to pay potentially large tax bills from the previous financial year!
The above issues can also apply to your existing business if you have been going through a growth phase of late.
So although the thought of paying tax may not enthuse you too much it is far better knowing where you stand, and what is coming up. This means your business can continue to expand and be in a position to seize upon any opportunities that present themselves without being constrained by unexpected tax liabilities.
Take control of your business and your taxes. It is best to seek professional advice to understand the tax implications and benefits for your personal situation. Book your appointment with our team now by getting in touch with BLG Business Advisers online or by calling (02) 4229 2211.