Do I need an accountant yet?

[kattatecopywriter]

Hi all,

Very exciting news - this week I have officially left the 9-5 grind and am now working full-time in my professional organising business (also doing part-time work and freelance writing work to support the biz).

What I'm really scratching my head about is whether I actually need an accountant at this stage?

My books seem pretty straightforward. I didn't make $75k in my biz last year (only started in May 09) and doubt I will this year. I receive payment from clients at the end of each session, so there's no invoicing required, and my understanding is that my tax is done through my individual tax return. Mind you, I have no idea how much tax I will have to pay or how to pay it, nor how to contribute to my super (things that were so easy when done automatically by my employer!!)

Is it worth visiting an accountant just for a one-off session to set a few things out? I have MYOB and am working through the training guide and seem to be going OK with that. Or is it a service I don't need so early on and considering my finances seem pretty straightforward? I'm not in a position to spend needlessly at the moment, so it's important I only do it if it will be of value!

I apologise for the blonde question - there's a reason maths wasn't my favourite subject at school!

[kattatecopywriter]

I should also mention I have scheduled an appointment with an ATO rep to go through my tax obligations, but am unsure how helpful they will be with accounting matters too...

[LeelaCosgrove]

Yes, double yes and triple yes.

I waited too long to see an accountant - for many of the same reasons ... wasn't earning a whole heap, small business, didn't think I needed to - but a good accountant is worth their weight in gold.

Not only will they minimise the tax you pay (and that WILL be an issue for you, even if you don't need to worry about GST), they will also help you ensure you have the right business structure to protect your other assets (personal assets, home, car etc) should any issues arise. They can also help you PLAN you tax going forward, which is something I wish I had of known about three years ago! I've been giving the government way too much money, damn it!

My accountant in Melbourne is awesome. He has a whole 'back office' set up and takes care of most of my financial stuff (just calls me every now and then and says "Leela - there's too much money in your account. You need to buy some more stuff.") - so that I can focus on doing what I'm good at - running my business - and not stuff I don't like - numbers!

Seriously - most accountants won't charge you to sit down with you and have an initial discussion. JUST DO IT!

(I'm currently writing a book on the things I wish someone had told me when I was getting into business and this is one of my TOP tips ... find a good accountant who cares about you and your business ... sit down with them and figure out what you need to do. This is SO important!)

[Burgo]

One of the FIRST things to do before you start out on your own is to visit your friendly accountant. Discuss everthing that is on your mind what you want to do how you want to do it.

Mine just shook his head, and burried his head in his hands and in a quiet voice said something like you cant do it that way. So I took his advice and 30 years later he still shakes his head and put his head in his hands and in a quiiet voice says you cant do it that way.
My accountant is my Mentor and devils advocate rolled into one and with out him, Ive been able to do everthing I wanted too and he kept it legal.

GO SEE AN ACCOUNTANT

[kattatecopywriter]

Wow thanks guys for your very strong advice!!

I will give your accountant a call pronto Leela!

[BookkeepiingPro]

Great to see you are taking the advise....

Even if you have to pay a few hundred dollars it will be the best money you have spent.

The reality is that they know things the lay person doesn't and can advise you on structure, obligations and compliance.

Good luck with the business...

[beanydc]

Originally Posted by Burgo

One of the FIRST things to do before you start out on your own is to visit your friendly accountant. Discuss everthing that is on your mind what you want to do how you want to do it.

Mine just shook his head, and burried his head in his hands and in a quiet voice said something like you cant do it that way. So I took his advice and 30 years later he still shakes his head and put his head in his hands and in a quiiet voice says you cant do it that way.
My accountant is my Mentor and devils advocate rolled into one and with out him, Ive been able to do everthing I wanted too and he kept it legal.

GO SEE AN ACCOUNTANT

(lol)... I recognise the Burgo kind of client. Now I just have to master the quiet voice.

Seriously, it's much easier to start out the way you need to continue, than it is to stop mid-stream, fix what you've done, and change your behaviours. And by that time too usually the business has a momentum that makes it difficult to take time out to do.

[Numberz]

Originally Posted by kat&kaboodle

My books seem pretty straightforward. I didn't make $75k in my biz last year (only started in May 09) and doubt I will this year. I receive payment from clients at the end of each session, so there's no invoicing required

Hi Kat,

I endorse what everyone else has said. Just wanted to add a couple of things to your above comments. You may be aware (and your accountant will tell you anyway) the $75k revenue figure is for a 12 month period (not the tax year) so if you expect that income over the next year (at any time) you should register. You can always register voluntarily (below $75k) as you'll be able to claim back the GST on business expenses.

Whether or not you send an invoice isn't important - most small businesses register for GST on a tax basis so it is the payment date that counts.

Good luck with the business

[kattatecopywriter]

Hi everyone,

Thanks so much for sharing all your advice - it's wonderful to get such honest and upfront advice. I can really see this is something I need to get onto ASAP.

Thanks again.