There are many aspects to consider when you are starting a personal training business. One of these key elements is record keeping and accounting. Here are the basic things that you need to keep in mind:
Keep records of all your business transactions.
According to tax law, there are certain records that you have to keep for a minimum of five years. These include records of: income tax, Goods and Services Tax (GST), payments made to employees, and all other business payments. According to the Fair Act Law 2009, certain records pertaining to employee information have to be kept for a minimum of seven years. There are many other record keeping requirements for a business owner. For more information, visit www.ato.gov.au/recordkeeping.
Invest in Standard Business Reporting (SBR)
As we have mentioned in previous posts, the latest business and accounting software incorporates SBR. This helps business to streamline government compliance and financial reports. This is the easiest way to both prepare and lodge reports with the Australian Tax Office (ATO) and other government agencies. For more information, visit www.sbr.gov.au.
Electronic records are definitely the way to go. Not only do they save you time, but they are far more accurate that their ‘old-school’ counterparts. For more information about what records you need to keep, visit visit www.ato.gov.au/recordkeeping. Fortunately, there are many great software packages available that are specifically designed to help you keep all the electronic records that you need for your business. A list of these packages is available at www.sbr.gov.au.
Get to grips with GST
Certain information has to be present on all the invoices which you send or receive, if you have registered for GST. The price of the sale determines what information has to be present on the relevant tax invoices. For advice in this regard, visit the ATO website.
Manage your business’ cash flow effectively
You need to pay your bills and tax on time. This is just one of the reasons why you need to manage your cash flow effectively. This involves preparing a cash flow budget, maintaining control of all money owed to your business, having sufficient working capital, and utilising an effective bookkeeping system.
Get help from a tax professional
You need to focus on running your business. You can free up more time to do this by consulting a Business Activity Statement (BAS) agent. A BAS agent will provide you with all the necessary BAS services. For more information, visit the Tax Practitioners Board.