Firstly, we congratulate you on the decision of initiating your online store. It needs a lot of determination and grit to reach the point that you are now. Following is the list of 10 businesses & accounting steps for enhancing your confidence level and make you are ready to launch the next step on your to-do list!
The following steps of accounting for your business
1. Opening of a Bank Account
You should register your business online for getting Australian Company Number (ACN), the unique number, automatically given to a company by ASIC. For accumulating the revenue, you should open a bank account. A separate bank account keeps records distinctive and makes life easier. LLCs, partnerships, and other corporations are required to have a separate bank account for business. Sole proprietors don’t need a different account, but it’s recommended.
2. Tracking Expenses
Foundation for stable companies requires proper tracking of expenses. It’s a critical step that allows you to scrutinize the growth apart from, financial statements, keeping track of deductible expenses, tax returns, and report on your tax return.
3. Developing Bookkeeping System
Bookkeeping is the day-to-day process of recording the transactions, categorizing them, and integrating bank statements. It is a high-level process, which needs proper monitoring by an efficient bookkeeper by building financial statements.
4. Setting up the Payroll
As a new online store owner, it might be a one-person show. However, you may hire some part-time employees for support.
5. Investigate Import Tax
Depending on the business model, you may plan for purchasing and import goods from other countries for your store.
6. Determine how you’ll get paid
As soon as sales start, you will need a way to accept the payments, for which you need gateways.
7. Establishing Sales Tax Procedures
Online Sales have shaken up the sales tax regulations, and they are confusing due to various location issues.
8. Determine Tax Obligations
Tax obligations depend on the legal structure of a business. Corporations have separate tax entities and are taxed independently from owners. Income from the organization is taxed as an employee.
9. Calculate Gross Margins
Improving the store’s margin should be the first step for constant monitoring. Evaluating the gross margin requires the detailed costs incurred for production.
10. Re-evaluate Strategies
When you first launch the company, you may opt to use a spreadsheet to manage your transactions, but you will feel the need for advanced methods like Quickbooks or the Bench app, later.
Concluding on this topic, we want to state that starting a business can be an excellent process, but if you follow correctly, you will manage the store’s finances from the beginning. Opening the right bank account and determining the quantity, these tasks