There are so many small businesses in Australia. In fact, they are a big part of the Australian Economy. However, it is difficult for small businesses to succeed since the competition is tough. If you’re a small business owner focusing on growing your small business, then it’s beneficial to hire a tax accountant to manage the finances and pay the taxes on time.
Here are the top 5 tips from a tax accountant to grow your small business:
Manage Your Cashflow
It is impossible to pay your employees, creditors and even yourself without cash flow. Therefore, hire an accountant to manage the cash flow of your small business. Track and understand your expenses to make sure you have enough funds to grow your business. Improving your cash flow can help you grow your small business.
Open a New Bank Account for Your Tax Obligations
It is a must to pay your tax. Therefore, make sure you always have enough cash to pay your taxes. You can open a new bank account for tax obligations. Once you complete paying your employees and creditors, you can send the extra funds to your new account. You will avoid spending the extra money on unnecessary expenses.
Related read: Basic Glossary of Tax Terms for Small Business Owners
Use Cloud-Based Software
It is easy to access financial information on cloud-based software. Your accountant can use either MYOB Live or Xero accounting software to record and store your financial information. It is crucial to have access to your data. Why? It makes it easy to manage your finances and pay your taxes.
Pay Your Superannuation On Time
Pay your superannuation on time to claim it as a tax deduction. However, if you fail to pay it on time, you can attract a Super Guarantee Charge. If you use either a Self Managed Superannuation Fund or Government Superannuation, it is more important to pay your superannuation obligations instead of even paying small loans.
Review Your Trade Terms
Once you invoice for the services provided or work completed, you should receive the cash within a specific timeframe. The timeframe should be reasonable. However, if you fail to receive the cash within the timeframe, it is time to review your trade terms. You can even ask for a percentage of the payments upfront. Receiving the cash as soon as possible can improve your cash flow.
Also read: 7 Tax Planning Strategies for Small Businesses
If you follow these tips, you will grow your small business. If you are in Perth, Western Australia and you are looking for the small business tax accountants or tax agents, then contact Perth Mobile Tax to chat with a friendly team member.
