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Small
Business will feature success and failure. As sometimes to succeed
we might just fail first. We also look at business cultures and why
some are good for you and some are simply a disaster waiting to
happen.
Starting a
small business or buying into a small business in Australia has
changed a lot over the past 10 years. Especially the past two
years. If your business turns over less than $1 million dollars
then we like to classify that type of business as a Micro Business.
Micro doesn't necessarily mean micro amount of work involved. From
our experiences each business whether micro, small, medium or large
each have a defined criteria to follow in terms of attitude towards
accounting practices, legalities, and company requirements. Lack of
consistency in any of these areas will undoubtedly determine the
fate of that business.
The ATO
(Australian Tax Office) have moved the goal posts in the past
couple of years and it would be fair to say that have benchmarked
most business classifications turnovers in Australia. This means
they have a median average on turnovers, GST, cash receipts and
earnings of most business types. What you have got away with in the
past might be a tad difficult to attempt now. This has created
an enormous melting pot of opportunity for accountants in Australia
because of the proclaimed compliance issues the ATO keep shouting
towards accountants who are basically sub - associates of the ATO
now. The ATO insist you must be using one or a licensed tax
agent/bookkeeper. This in itself is absolute non-sense and has
created this fear factor with small business operators in
Australia. Our advice is that most small businesses cannot afford
the outrageous over billed fee's that accountants now charge. Get
yourself some good 'Cloud' or MYOB Accounting software and learn
how to use it. Then use accountants once or twice a year for
Company taxation requirements and submissions. You will save
yourselves thousands and thousands of dollars and you are still
complying with current Australian Tax Laws.
Cash flow
is the biggest single problem with any business in New Zealand or
Australia today. That and BAS (Business Activity Statement)
submissions. GST requires you to pay 10% of your earnings to the
ATO less your expenses. Unless you have a business that purchases
capital equipment often it is most likely you will be writing a
cheque to the ATO quarterly or yearly. A lot of small businesses
have been ducking and weaving this in the past and now the ATO
simply hand the file to Dunn and Bradsheet to collect or close you
down. All businesses are tax collectors for the ATO in one form or
another.
Most small
businesses are essentially just buying you a job with far more
responsibility than being an employee of an employer. Have a very
good hard think about this before you engage in any business
venture. You might make more money and you might not. Lethargy
towards learning and developing yourself is not an option. The
first thing to invest in when going into business is the right mind
set and how to achieve and maintain that mind set for success. This
is no easy feat. Just ask any successful business
person.
These are
our 10 Commandments for Small Business ~
1.
Attitude
2.
Gratitude
3.
Education
4.
Enthusiasm
5.
Discipline
6.
Persistence
7.
Patience
8.
Determination
9.
Endurance
10.
Vision
People in
business who are successful look at life very differently than
someone who is an employee. Business people mix with other business
people. Probably better explained as if you want to be successful,
hang out with successful people! Remember this quote as vision is
what it takes to be successful in any business whether micro,
small, medium or large.
" Where there is no
vision, people perish..." ~ Proverbs 29:18
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