The day you open your small business will probably be one of the most memorable and fulfilling days of your career, or you might want to just forget about it overall, but as you plan your grand opening, it’s important to remember that not all small businesses are destined to succeed. Starting a successful business in Australia requires strategic planning, hard work, and dedication. 

We run through five steps that are crucial at the beginning stage of the business process. By taking care of these important details from the outset, you’ll be well on your way to setting up your business for success, so make sure to stay tuned for that as well.

1. Choose the right business structure

So the first step in starting a business is to choose the right business structure. This may seem like a minor detail, but it’s actually very important. The type of business structure you choose will determine things like your tax obligations, how much tax liability you have, and what sort of steps you need to take to establish the business entity in Australia. You can either be a sole trader, set up your business as a company partnership, or trust. Each of these has its own advantages and drawbacks, so you’ll need to speak to a lawyer to help you choose the right structure for your business.

2. Open a business bank account

The second step is to open a business bank account. When starting a business, it’s important to keep your personal and business finances separate from the get-go. It would save a whole lot of headaches, not to mention a lot of accounting fees down the line as well. It basically ensures that you’re not mixing your personal transactions with your business transactions. When you’re setting up your account, be sure to shop around and compare the fees and features. Once you’ve opened your account, you’ll need to deposit enough money to cover your startup costs. Obviously, these can include things like licenses, permits, merchandise, office supplies, and marketing materials. Once you have decided what type of business you would like to open and set up your business bank account.

3. Register your business

The next step is to register your business with the Australian government. Once you’ve registered, you’ll be provided a unique Australian business number, or an ABN. The Australian government’s business registration service is easy to use and can complete the process in a matter of minutes. The site even offers a helpful tool that will guide you through the business structure and tax registration that would best suit your new business. Registering for AN is free, and you can register for a business name and a GST at the same time through the business registration service website. GST is a goods and services tax that all business owners need to pay if they’re generating a turnover of more than $75,000 per year, but it might actually be a good and effective tax strategy if your business has high startup costs, so you can claim all those tax credits back.

For example, if you’re opening up a restaurant or gym, you need to fork out quite a bit for all the equipment and fit-out costs. By registering for GST, you need to add 10% to your prices, and at the same time, you’ll be able to claim GST on the credits for the goods and services you have purchased for your business in Australia. If you don’t register, you won’t be able to claim those credits back. This amount can be substantial depending on all your business expenses and your startup costs, so be sure to look into that.

There are other taxes you may need to register for, such as the PLG withholding tax and fringe benefits tax, but the taxes you must register for are dependent on the type of business you choose to start, with some applicable to every type and others only mandatory for certain types, so make sure you chat with her account about this. It’s super important to get this right from the get-go because if you don’t register for the correct taxes, you could face some legal and tax implications.

4. Setting up the accounting software

The fourth step is setting up the accounting software. As you get started building your business, you have a lot of big decisions to make. One of the most important choices is strategically choosing software that can make your life easier as you scale your business. Accounting software can help you keep track of your incomings and outgoings, stay on top of your taxes, and produce essential financial reports that could help your business.

It can also make it easier to manage payroll and staff expenses as part of your tax obligations. The ATO wants you to lodge a business activity statement, or BAS, every quarter or monthly and a tax return each year. Most accounting software will actually automate this for you with the help of an accountant. So basically, not only is accounting software an invaluable tool for any business, it’s pretty much a necessity, plus it would also give you the information you need to make sound decisions about your business going forward.

So if you’re setting up a new business, make sure you get some accounting software sorted out. It really could make all the difference in your success. Please note that there are quite a few different accounting software programs available, so it is important to choose one that is right for your business. Some factors to consider include the size of your business, your budget, and the features you need, but again, your accountant can help you with this as well.

5. Purchase business insurance

Step five is to purchase all the relevant business insurance. This could include public liability, professional indemnity, and worker compensation, which could all be compulsory depending on your industry. By making sure you have the right coverage in place, you can protect your business from potential risks and liabilities. You may also want to consider other types of insurance, like business insurance, property insurance, and asset insurance. cyber insurance, but regardless of what type of insurance you choose, make sure you shop around and compare the policies before making a purchase. It’s actually really important to look into this. With the above essentials sorted, you’re almost good to go, but we do have one last tip for you.

If you’re serious about starting your own business, you’re going to need a good lawyer for your team contracts. Copyright and trademarks can be tricky waters to navigate, and it’s important to have someone on your side who knows the ins and outs of the legal system. A good lawyer can help you avoid pitfalls and protect your interests, so don’t try to go it alone. Invest in a good legal team from the beginning, and you’ll be glad you did. Of course, we didn’t emphasize the importance of hiring a good accountant for your team as well.

Even if you’re the most financially savvy person in the world, there are some things that are best left to experts, and there are some things that accountants can only do for you when it comes to running a business. One of these things is accounting. A good business accountant can save you money on your taxes. cash errors in your bookkeeping and offer valuable insights into where your business is succeeding and where it could use improvement; in other words, a good business accountant is worth their weight in goal.

Conclusion

So if you’re serious about making your business a success, be sure to hire a qualified accountant to be part of your team. You won’t regret it.