Business Tax: The Basics

If you are a small business, partnership or sole trader, there is a good chance that your specialisation is in the goods or services you provide and not running a business itself. Of course, the business administration side of things is possible to learn over time, and if you have the drive and ambition to go to work for yourself then you most certainly have the capacity to learn how to make smart business decisions. Something that will really help you when you start out is investing in an accountant. An accountant can explain to you your rights, responsibilities and areas in which you should be paying more attention or investing more money. Whats more, theyll be able to help you keep your business taxes in order, which is crucial to the ongoing success of your enterprise. Here, we outline some of the basic points about business tax you should know.

ABN

The first thing you need in order to operate as a business is an Australian Business Number, or ABN. This allows you to operate as an independent business or contractor, and registers you with the Australian Taxation Office.

BAS

A BAS form refers to a Business Activity Statement form and is a form that all business must complete and send to the ATO. This details their profits and tax obligations.

Assistance Visit

For anyone starting out in business, this is an extremely useful tool. The Australian Taxation Office offers free business assistance visits to small business owners. These involve an ATO agent visiting your place of work or your home and discussing with you all the basic requirements and options involved in the running of your business. The visit is obligation free and allows you to ask any questions you may have regarding employee benefits, super obligations, GST and Pay as you go. Anyone starting up in business should take advantage of this service.

Business Tax Accountant

Not only will a tax accountant help you with all of your legal tax obligations, if you find the right one, they can help you with everything from setting up your super contributions to insurance and even financial advice. Setting up shop on your own can be incredibly daunting, and at times it can feel as though theres no one to ask when you need advice or guidance. Developing a good relationship with a reputable accountant can make the entire process less daunting, and if you work with your accountant and follow their advice, it can prove to be a lucrative one as well.

The most important thing to remember when starting up a small business or partnership is to accept all the help on offer. There are several government schemes and rebates wherein you can apply for grants, advice and assistance. This, along with a good accountant and some hard work, will ensure your business has the very best chance of success.