People new to business usually focus on what seems to matter most: finding customers and getting the word out about their products and services. Tax can seem like something to deal with once a year. But knowing the tax rules for your industry is one of the surest ways to grow and keep more of your profit.
For small business owners and start-up founders, this is a primer worth reading on the first day you open your doors. Quality and service win customers, and so do competitive prices, but the businesses that last are the ones that understand money, people and the rules.
1. Learn about your industry
Whether you run a software studio or a café, you are part of a larger industry, and each industry has its own standards and rules. The ATO publishes guidance for many industries, and that should be your first lesson in tax for your business.
2. Study the tax rates and rules
Learn the tax rates and rules that apply to your business, and keep up with changes. Australian and state governments offer help and concessions for small businesses, and good records, such as tax returns and bank statements, make it easier to apply for finance and support when you want to grow.
3. Get on top of your income and expenses
For this you need a good accountant, ideally one with experience in your industry. They can help you plan for tax, manage your expenses and decide where to invest as your income grows.
Talk to your accountant about the tax rules for your business.