Learn how expert accounting solutions from Ashmans Accounting can guide your startup’s financial growth, tax compliance, and budgeting.
.png){kind=logo}
Learn how expert accounting solutions from Ashmans Accounting can guide your startup’s financial growth, tax compliance, and budgeting.
At Ashmans Accounting, we understand that getting the financial aspects of your startup right from the beginning is crucial. Proper accounting isn’t just about keeping the books in order; it’s about gaining insights into your business’s financial health and making informed decisions. By establishing strong accounting practices, you can manage cash flow effectively, plan for taxes, and set your business on a path to success.
With Ashmans Accounting, you receive tailored support to simplify the process and guide you through every step. Our team is dedicated to helping startups navigate the essentials of accounting, ensuring a solid foundation for growth.
In each section of this guide, we included some key questions you should ask your accountant to help you make informed decisions and set your startup up for success.
Selecting the right accounting method is one of the first crucial decisions for your startup. The method you choose—cash basis or accrual basis—can significantly impact how you track your finances.
This method records income and expenses only when money changes hands. It’s simpler and often preferred by small startups with straightforward transactions.
This method records income and expenses when they are incurred, regardless of when the money is actually received or paid. It’s more complex but provides a more accurate picture of your financial health.
At Ashmans Accounting, we can guide you through this choice based on your business model, helping you understand the implications and benefits of each method. With our expertise, we ensure that you choose the accounting method that aligns with your startup’s financial strategy and growth plans.
Effective planning and budgeting are crucial for any startup’s success. A well-thought-out budget helps guide financial decision-making, enabling you to allocate resources effectively and plan for future expenses.
Developing a budget is essential for managing cash flow, reducing unnecessary expenses, and making informed decisions about investments and expansion opportunities. Utilizing digital tools and software for budgeting can also help track expenses and stay organized. Sound cash-flow management practices ensure long-term sustainability and growth.
Understanding your fixed and variable costs helps create a realistic budget.
Discuss strategies for managing cash flow, including setting payment terms with clients and tracking receivables
Explore various budgeting tools and methods that suit your business model.
Accurate forecasting helps predict future income and expenses, aiding in better decision-making.
At Ashmans Accounting, we assist startups in developing a comprehensive plan and budget, ensuring you’re prepared to manage your finances effectively from the start.
Starting a business in Australia comes with a range of tax obligations that are crucial to understand and comply with. Proper management of these obligations ensures that your startup remains compliant with the Australian Taxation Office (ATO) and avoids penalties. Here are some key areas to focus on:
Goods and Services Tax (GST): If your business expects a turnover of $75,000 or more annually, you must register for GST. This means you need to add GST to your prices, issue tax invoices, and lodge Business Activity Statements (BAS).
Pay As You Go (PAYG) Withholding: If you have employees, you’re required to withhold tax from their wages and remit it to the ATO. This also applies to payments made to contractors if they don’t provide an Australian Business Number (ABN).
Income Tax: Your business must declare all income and claim allowable deductions on your annual tax return. The amount of tax you pay depends on your business structure.
Superannuation: As an employer, you need to make regular super contributions for your eligible employees. This is an essential part of employee entitlements.
Understand which taxes apply to your business, such as GST, PAYG withholding, and payroll tax.
Learn about record-keeping requirements, deadlines for lodging returns, and payment obligations.
Ask about any government incentives or concessions that you might be eligible for, such as the R&D Tax Incentive.
Explore strategies for managing cash flow and setting aside funds for tax payments.
At Ashmans Accounting, we guide startups through the intricacies of tax compliance, helping you navigate these requirements efficiently. By ensuring you meet all obligations and take advantage of any available concessions, we help you keep your business on the right track.
Accurate record-keeping and financial reporting are fundamental to understanding your business’s financial health. Proper bookkeeping allows you to track income and expenses, manage cash flow, and ensure compliance with tax obligations. At Ashmans Accounting, we offer comprehensive bookkeeping services designed to take the hassle out of managing your finances.
• Informed Decision-Making: Good bookkeeping provides valuable data for strategic decisions, such as budgeting and identifying growth opportunities.
• Compliance: Maintaining accurate records helps you meet ATO requirements and avoid potential fines or penalties.
Customized Services: We offer tailored bookkeeping solutions, including managing invoices, BAS/IAS lodgements, and payroll.
Software Setup: Our team can set up and manage accounting software like Xero to streamline your bookkeeping process.
1. What record-keeping practices should I adopt?
Understanding which records to maintain and how long to keep them is crucial for compliance and financial analysis.
2. How can I automate my bookkeeping?
Discuss the use of software tools to simplify the process, such as Xero or Dext, which Ashmans can set up for you.
3. What financial reports do I need to generate regularly?
Learn which reports are essential for tracking your business’s performance, like profit and loss statements and cash flow reports.
Choosing the right business and investment structure is key to maximizing returns and minimizing risks. At Ashmans Accounting, we help startups determine the most effective structure tailored to their needs, whether it’s a sole trader, partnership, company, or trust. The right structure impacts how much tax you pay, your responsibilities, personal liability, asset protection, and reporting requirements.
Explore different options to find the most suitable structure.
Understand the tax implications and benefits associated with each structure.
Learn how different structures can mitigate potential risks.
Ashmans Accounting provides professional advice to ensure you choose an appropriate structure from the outset, avoiding costly restructuring later on. For more details, visit our Business & Investment Structure page.
Regularly assessing your startup’s financial health is crucial to ensure long-term success and sustainability. This involves analyzing key financial indicators like cash flow, profitability, and debt levels. By conducting these checkups, you can identify potential issues early, make informed decisions, and adapt strategies for growth.
Understand the frequency and key metrics to monitor.
Learn about important ratios like liquidity and profitability.
Get advice on optimizing revenue streams and reducing unnecessary expenses.
Ashmans Accounting offers Business Advisory Services to provide ongoing guidance for maintaining your startup’s financial health.
Thinking of starting your own business? We’re here to support you every step of the way.
Contact us today to schedule a consultation and ensure your new business is on the right path to financial stability and growth.
.jpeg)
.png)
.png)
