So, you want to be your own boss, do you?
(My 20 point "safety net" issues to consider)
(Major ones for you to consider - prepared/compiled by: Foster Lee FCA C.dec)
l set out below my 20 point "safety net" issues that you need to address for your statutory income tax and legal obligations in particular prior in conducting your new business. My points are aimed essentially at those intending to go into business but they do have a generic application too.
1. You are fully satisfied that you have done adequate and thorough due diligence and sought professional (legal, tax and accounting and any other) advice well before commencement.
2. You have determined the most effective and appropriate trading entity for your tax and legal purposes je to operate as a sole trader, partnership, company or trust.
3. The entity is registered for an Australian Business Number ("ABN") and Tax File Number ("TFN"). If you are operating as a sole trader, you will use your own personal TFN but you will need to get an ABN.
4. The entity is registered for Goods and Services Tax ("GST") and/or PAYG Withholding ("PAYG"), whichever is relevant. If your turnover is expected to be $75000.00 and over per annum, you must register for GST.
5. The entity has the most flexible and cost-effective accounting software package for your purposes. If unsure, discuss this matter with me ASAP.
6. If there are "sub-contractors" working for you that they are sub-contractors by definition and not closed as employees within the definitions of the income tax law.
7. You, on behalf of the entity, consider an Employee Workplace Agreement ("EWA") with each of your employees. I highly recommend these as they set out clearly what the parties' rights and obligations are. Particularly what you clearly expect from your employees right from the start!
8. You, on behalf of the entity, consider an Employee Confidentiality Agreement ("ECA") with each of your employees, if you deem it necessary. This may help reduce potential misuse of sensitive inlbrmalion that employees may come in contact with.
9. If you have employees (excluding yourselves), that the entity is registered tor WorkCover.
10. All employees are paid the absolute correct rate/hour and entitlements under the relevant/applicable State or Commonwealth Awards.
11.The entity is registered as a superannuation employer and that all employees are paid their compulsory superannuation, currently at 9.5% of gross wages where gross wages exceed $450.00 per month.
12.The entity has all the necessary business risk insurances (et fire, burglary, glass breakage, money in transit, misappropriation of monies, etc, etc) in place.
13.If there is a lease on the business premises (the lessee being the entity), that the lease is properly executed and dated and that you fully understand all its terms and conditions. Have your lawyer peruse and comment on the lease document.
14.Where appropriate, consider an effective website for the business to help get the business "message" across. Even consider a Unique Selling Proposition ("USP") slogan that the public at large can identify that specifically relates to your business.
15.The entity has a realistic and flexible budget. Review it on a regular basis.
16.You write down what are your short-term, medium term and long-term goals and objectives with the business. Have a well constructed Business Plan. Work on your business and not in it!
17.The entity has an effective Operational, Financial/tax planning, Marketing and Review program. What works best for you!
18. All business records are kept for a minimum period of five (5) years for income tax purposes.
19. You keep ahead of your competition. Regularly examine your Strengths, Weaknesses, Opportunities and Threats ("SWOT" analysis).
20.You seek professional help on regular and timely basis. Best after each BAS quarter!
My 20-point "safety net" issues for you to consider are by no means exhaustive but will assist you to "Get It Right The First Time". Assuring you of my continued very best value for service at all times to protect you and give you peace of mind.
Vital/useful websites for you to visit