New Business Accountant Balcatta

From Concept to Cash: Important Considerations for Establishing a New Small Business

Author │ Simon Liddicoat – MAS Tax Accountants Duncraig-Warwick

Congratulations! You are now on the cusp of establishing you very own business. You have a great idea, you know how to meet your customers’ demands and are ready to do the hard work. It’s a good plan in theory, but do you know how to you convert your concept into cash? The most important aspects of a small business lie in the finer details, such as a solid business plan, business systems and finance. Luckily, you’re not in this alone. Our New Business Accountant Balcatta can assist you throughout your new business journey.

As a Chartered Accountant and Small Business Owner, I have been involved in setting up several businesses over the years, both by myself, with partners and for clients. While each new business has its own unique needs and focus points, they all have a similar underlying structure. Here are some of my findings from my years of experience.

Business Plan

A well-thought out business plan provides a great framework for your business. You will find yourself referring to it regularly. Each business plan will need to be customised to fit your type of business, time frame, finances and central business roles. Be sure to consult with your Accountant or Business Advisor on these requirements and what needs to be included.

Personal Finance Considerations

You may continue working whilst you establish your business, or perhaps you will leave employment and make the leap of faith into the world of “Self Employed”. Each person’s personal circumstances will be different, but you will need to have a clear understanding of how your personal situation will affect your business plans. Based on some conservative business modelling, how much you will be able to draw from the business to assist you with your living costs and personal commitments. This is just one of the many questions that will be asked with a New Business Accountant Balcatta.

The Right Structure

What is the right business structure for you? Perhaps Sole Trader, Partnership, Trust or Company. There are several factors to consider when selecting a structure and many questions that you need to ask yourself and your New Business Accountant Balcatta.

These could include:

Will the structure provide your personal assets with protection from business failures, claims and risk?
What are the compliance measures and related-costs for each different structures?
How flexible is each structure? What level of flexibility do you need?
How will the structure impact my short term and long term taxes?

Funding the Start-up

There is one simple fact that you can count on when starting up your business: all new businesses require funding. While some may be started with minimal costs, others will be more capital intensive and may require more commitment. The big question then becomes, “where will these funds come from?”

Will you approach the banks and apply for loan? Will you invite a business partner to contribute equity? Perhaps will you go more broadly and consider the debt/equity markets? Funding your start-up requires careful planning and it is essential to seek proper advice.

These questions that can be discussed with your Accountant, Finance Broker or Financial Planner, who can assess your financial situation and provide reliable solutions.

Registrations and Licences

All business will require registration with the Australian Tax Office (ATO) for an ABN, GST and a Tax File Number, as well as a business name, if applicable. You may also require licences and permits to operate in a specialist field, such as hospitality, finance or child services. Regardless of your business products or services, you will still need to take careful consideration of your set-up and ensure that you obtain the correct registrations and licences that apply to your industry.

Staff, Premises and Business Systems

Depending on the scale of your start-up, you may or may not need staff and premises at commencement. However, as your business grows, you will eventually need to expand your staff and building space to accommodate for mew successes. Like any good plan, you need to make these decisions at the right time, and ensure that you are not making commitments that may be overly costly at a later date.

Business Systems are widely available for different industries and in the age of digital disruption, it is likely that there is a system that can be tailored specifically for your business’ needs. Do not underestimate the efficiency that a good business system can provide. It can give you the time and space you need to build and improve your business, and continue to move from strength to strength.

Simon Liddicoat CPA, Principal Accountant

Simon Liddicoat is a Chartered Accountant and Small Business Expert. If you are considering a starting a new business or are in need of a new business accountant Balcatta, please speak with Simon and see how he can help your small business succeed.