For some people understanding numbers and finances comes naturally but for others the simple mention of the tackling their finances can bring on a sweat. However, it’s an essential aspect of having a successful small business.
Now before you start to panic, calm down, your business finances don’t have to be complicated. At the end of the day, the concept of making money is simple. You need to be bringing in more than you spend. Therefore, if you’re able to track your small business’s income and expenses, you’re already ahead of the game.
Here are a few ways to make understanding your business finances a little easier
- Subscribe to bookkeeping software or hire an accountant. Online accounting software can be a cost-effective option and will help you track your income and expenses regardless of if you’re in the office or out on the road. However, if you like a more personal touch, approaching an accountant you trust will not only relieve the stress of financial management, but when a financial issue arises that requires expertise, you already have someone you can turn to.
- Keep your budgets and financial records simple. Keeping budgets and financial records simple will make sure it’s easy for you to stay on top of things. You will need to keep track of everything from invoices, receipts and check stubs. So, if your organisation’s finances are simple and accessible, you’ll make life as a small business owner a lot easier for yourself.
- Keep your personal and business finances separate. Having a separate bank account for your business will enable cleaner accounting, maximise your tax deductions, help you get business financed as your business grows bigger and assist in making you appear more established and professional to your customers.
- Know your GST obligations. It’s important that you know what your GST obligations are so you can make sure you’re selling your services at the correct price and that you’re registered with the ATO so you can claim your GST credits.
- Fuel tax credits. Fuel tax credits provide a credit for fuel tax (excise or customs duty) that is included in the price of fuel used in eligible business activities.
- Personal services income. For smaller businesses in the transport services industry it’s important to work out if personal services income applies to you. That is income that is produced mainly from your personal skills or efforts as an individual.
Along with understanding your businesses finances another smart decision you can make as a small business owner is looking after your business’s most precious asset, your truck. Truck Assist’s Roadside Assistance for breakdowns and Drive Pack Truck Insurance for accidents.
Truck Assist offer a well thought out solution for small businesses who are seeking to protect their company truck. Get a quote for Roadside Assistance or Drive Pack Insurance online to see how we can keep you on the road.
This blog is a guide only and does not contain a definitive list of regulatory requirements which you must meet as a business owner. Businesses are required to comply with all laws, regulations and codes of practice by identifying their risks, and develop and implement control measures tailored to their circumstance, and you must seek independent advice to assess your circumstances.