Your Business Checklist

Register for an ABN (Australian Business Number) by choosing to register for one of the below business structures available in Australia:

• Sole Trader
• Partnership
• Company

You can register multiple business names under the same ABN, make sure you are trading under a business name that you have registered and a structure that suits your personal circumstances.

When to register

You must register for GST when your sales reach $75,000. It could also benefit your business by registering early, especially if you make large purchases for equipment or stock.

How to register

You can do this at the same time as your business registration or add it afterwards by using the business portal here. For more information on the GST requirements please visit the ATO website. 

Choosing an accounting method

When registering, ensure you choose the accounting type most suitable for your business.

Cash: Income and expenses are recorded when cash is received.

Accrual: Income and expenses are recorded when the obligation arises eg. sales invoice raised or a bill has been issued.

The most accurate and informative for making business decisions is the Accrual method. More information on the different methods can be obtained here.

Open a business bank account and use it for ALL business income and expenses.

You can (depending on the bank) get a free GST bank account when you open a business bank account. This is very useful, as a method of managing your cash flow. Transferring the monthly GST collected across to this bank account ensures the money in your main business account is solely for running the business & you don't get any surprises come BAS submission time!

Which bank is best?

When you are starting out and growing your business, the main uses for a bank account are access to cash and the ability to link a direct bank feed to your accounting system (eg. Xero). Therefore it's best to go with a big bank that has an online banking platform you're happy with.

Ensure you keep records of what is happening in your business. Examples include:

• How many sales have you made, what for and what is the value?
• What have you purchased and how much?

How can I keep records?

• Xero - easy to use system that will grow with your business and connects to handy apps for each industry.
• Excel - if you're just starting out, have a good template & feel confident - go for it!
• Other -  whatever way suits you but note what’s happening in your business. 

Supporting documents include invoices, bills and expenses. If you have chosen to go with Xero, you can simply upload these into the system. If not, take a photo of the receipts (and save down the bills & invoices) and store them digitally according to the month. This will save time when you eventually move across to Xero!