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How to Navigate the Financial Responsibilities of a Small Business

Running a small business can be both rewarding and challenging, particularly when it comes to financial planning and management. One of the key aspects of this involves understanding financial obligations, the various types, and how they impact your business.

What are Financial Obligations?

Financial obligations are simply responsibilities that require a financial output from your business. They are usually imposed by external parties and are recorded as liabilities on your business’ balance sheets. Financial obligations may include taxes, lease repayments, and employee benefits, among others.

 

Small Business Concessions

As a small business owner, you might qualify for various tax concessions. These can encompass the small business CGT concessions, instant asset write-off, reduced company tax rate, simplified depreciation rules, PAYG instalment concessions, and the small business income tax offset.

Other concessions related to Fringe Benefits Tax (FBT), Goods and Services Tax (GST), Pay as You Go (PAYG), and superannuation may also be applicable.

 

Staying Updated

Legislation and accounting standards are continuously changing, so it’s crucial to stay informed. Signing up for authority newsletters such as ATO’s Small Business Newsroom, ASIC’s InFocus, and NORTEC’s Business Connect can help you stay on top of the latest changes. Your accounting software and your accountant can also provide valuable updates and insights.

 

Record Keeping

Maintaining detailed and accurate records is essential for your business. In Australia, financial information must be kept for seven years. All documentation must be in English or have an English translation attached.

 

Common Pitfalls

Avoid common pitfalls such as relying entirely on external parties to correct your accounts or waiting to talk to your accountant at the end of the financial year or quarter. Assuming what other people do is correct or failing to plan can lead to unnecessary complications.

 

Seeking Help

Remember, help can come from many sources, including accountants, tax agents, financial planners, and banks. Reach out whenever you need assistance or guidance. 

At NORTEC, we understand that the financial landscape can be complex and confusing for small business owners. That’s why we’re here to guide and support you every step of the way.

Whether you’re looking to better understand your financial obligations, need help navigating accounting discrepancies, or want to keep up to date with the latest legislation, NORTEC has the expertise and resources to help you thrive.

Ready to master your small business’s financial landscape? Get in touch with us today and let NORTEC be your guide to financial success.

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