FROM PLAN TO PROFIT

Venturing into the world of entrepreneurship is not for the faint-hearted. But with sound planning, fiscal strategy, and a solid grasp of the current economic climate, it can lead to significant rewards. As your advisors, Hills Accountants in Hobart are able to share a few tips to help you navigate the exciting but challenging waters of starting a new business in Australia during the 2023/24 financial year.

Preparing Your Finances and Understanding Your Tax Obligations

Taking charge of your business finances is paramount, and how you manage your cash flow could be the determining factor between the success or failure of your business. Being well-informed about your tax obligations is also critical. Staying updated with changes to such tax laws can make tax time less taxing and help you avoid penalties and Hills Accounting gets notification of such changes to help keep you ahead of the game.

Make the Most of Asset Write-Offs

The government is allowing the instant asset write-off scheme for small businesses up to an asset cost of $20,000 from 1^st July 2023. Small businesses with an annual turnover of less than $10 million can immediately deduct the full cost of eligible assets up to $20,000 first used or installed between 1 July 2023 and 30 June 2024. This can assist in improving your cash flow to reduce tax.

Capitalise on the Small Business Energy Incentive

This scheme provides an additional 20% tax deduction for expenditures related to energy efficiency improvements and electrification. By investing in energy-efficient assets, you can benefit from this incentive and potentially reduce your operating costs. Just remember, the assets must be ready to use between July 1, 2023, and June 30, 2024.

Manage Your Tax Instalments Wisely

The government is amending the tax law to temporarily set the GDP adjustment factor for PAYG and GST instalments to 6%, down from 12%. This can provide some relief for small businesses looking to manage cash flow, especially if you're in a phase where you're burning through cash quickly. Start-Ups are not required to pay PAYG and GST Instalments in their first financial year.

Seek Professional Advice Regularly

The business landscape, especially financial and tax regulations, can be complex and fast-changing. Having a team of professionals such as accountants, lawyers, and consultants can help navigate these complexities and ensure you are maximising opportunities and managing risks. In addition, consider using a finance broker to keep your existing lenders honest.

In summary, running a successful business venture requires more than a good idea. It involves understanding and utilising the available financial mechanisms, making strategic investments, using appropriate marketing techniques and seeking professional advice regularly.

At Hills Accounting, Hobart we can provide you with the right financial strategies, so you can solidify your financial base and make your business venture more successful.

For more helpful information, email us today at admin@hillsaccounting.com.au or Phone 03 62737800