Financial tips for running a small business in the ‘gig’ economy
Plenty of Australians are taking advantage of opportunities to start a small business in the ‘gig’ economy. Here are three tips to help you overcome the most common challenges that many small business owners face.
Tip 1: Separate your business and personal finances
It’s important to separate your business finances from your personal finances from a tax perspective. The last thing you want to do is fall foul of the Australian Taxation Office.
If you’re running a small business, you’ll have reporting obligations such as lodging regular Business Activity Statements (BAS) and potentially registering for GST. You’ll find that your reporting obligations will be much easier if you separate your business and personal finances.
Tip 2: Monitor your cash flow
Did you know that 60% of small businesses in Australia fail in the first three years and that cash flow issues are the leading cause of that failure?
Tip 3: Manage your bookkeeping
Diligent bookkeeping helps you to stay on top of your finances. These days, bookkeeping doesn’t have to be a chore. You can use automated software packages like Xero to do all you bookkeeping tasks quickly and easily online. For example, you can send customer invoices and manage your stock anywhere and anytime, even while you’re on the go.
How we can help
At Scorpion Bookkeeping, we specialise in helping innovative business owners to take charge of their finances by providing up-to-date information for decision-making. We’re a Xero-certified advisor we can help you get set up with it, as well as providing you with any bookkeeping support services that you need. We currently have business clients in South Australia, Victoria and New South Wales.
Contact us today to find out how we can help your business!