Are you a startup business owner? Starting a new business comes with excitement as well as challenges. Many startup business owners neglect using accounting services to save money, but they end up paying more than necessary due to their lack of knowledge regarding accounting and other tax matters. An accountant can be your helping hand in this case, as they can guide you through financial decisions to help you achieve success in your business.

Why should you get help from an accountant?

Before you understand the financial situation of your business, you need to understand the complex tax regulations, different compliance requirements, and industry-specific obligations. This is where professional accountants come to play their role. With their experience and a wealth of knowledge, they can help you make informed business decisions after considering your business’s financial situation. They will provide you with a clear picture of your company’s financial situation. Getting help from an accountant won’t only simplify your finances, it will also save you time and money.

What questions should you ask your accountant when starting a new business?

Now, it’s clear why you need to get help from an accountant if you are starting a new business. Now, you may be wondering what questions you should ask your accountant. Let’s explore these questions one by one:

• How do I manage cash inflow and outflow?

As the name suggests, cash flow indicates how cash flows in and out of your company. It includes the cash received from sales, which indicates cash inflow and the payments you make for expenses are called cash outflow. Your company must have a positive cash flow, which means more money coming in than going out of the company. When choosing Melbourne Accountants, you can be sure that they will manage your business cash flow by:

• Keeping track of your expenses and income provides you with an accurate view of your cash flow.
• Addressing cash flow patterns, including areas where you could cut off extra expenses.

• Do I need to register for the Goods and Services Tax (GST)?

Your business needs to register for GST if your business turnover is $75,000 annually. Even if you earn less, you can register for GST, which will offer numerous benefits, such as claiming GST credits on business expenses and simplifying the GST process if your business surpasses the threshold. Accountants can advise you on whether it would be beneficial for your business to register for GST. They can help you with the registration process and manage and prepare a Business Activity Statement lodgment to keep your company compliant with the Australian Taxation Office’s rules.

• What are my tax obligations?

As a business owner, you need to meet certain tax obligations, such as

• Pay income tax
• GST
• PAYG and other relevant taxes

When looking for accounting in Melbourne for your business, you can ask your accountants to look after your tax obligations. They can help you by preparing and filing your taxes, keeping your business compliant with new tax laws, and identifying credits, deductions, and other tax-saving opportunities.

• What records do I need to keep?

Good record-keeping is crucial as it helps you make better decisions for a business. Your accountant and bookkeeper can provide the following records:

• sales records
• expense records
• inventory records
• payroll records
• tax documents
• bank statements

• Ask for accounting software recommendations

Appropriate accounting software can streamline your business’s financial management by:

• Managing cash flow
• Monitoring expenses
• Ensuring PAYG, GST, and BAS compliance
• Creating financial reports
• Handling payroll management

• How will I prepare for my taxes?

Accountant and bookkeeper service can assist you by:

• Arranging your records
• Monitoring and reconciling bank accounts
• Claiming possible tax deductions
• Managing BAS and GST
• Preparing for expected tax obligations depending on your income throughout the year
• Suggesting on tax-effective strategies

Conclusion

When choosing accounting services for your startup business, you need to ask a few questions to your accountant. You can get more information about the basics of accounting for your business by contacting Reliable Melbourne Accountants.