As a new business owner, it is imperative to understand your obligations to ensure you are starting out on the right foot.

Listed below are  are the 'top 7 things' taxpayers need to know when starting a new business.

1. Using digital tools and maintaining accurate records to help manage daily activities and cash flow.
2. There are some registrations that will need to be completed when starting a business (for example, registering for an ABN or a business name).
3. Claiming a tax deduction for most business expenses if the expense is directly related to earning income.  Taxpayers should remember to keep records and only claim the business portion of mixed-use expenses.
4. The type of business structure set up will affect tax and registration requirements, so you need to choose the right business structure and understand the obligations.
5. If you are an employer, you should realise that you have extra responsibilities and obligations (e.g., super guarantee and Single Touch Payroll).
6. The need to lodge and pay taxes on time.  You can prepay estimated income tax liability through PAYG instalments.
7. Businesses that maintain accurate records, lodge and pay on time and avoid errors not only steer clear of penalties and general interest charge but also become more resilient when facing challenges.

 If you need assistance with any of these issues, please contact our office.