Home – New Forums Starting your journey How could I do one business deal?

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  • #987428
    Water.Surge
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    Hi, everyone

    I have applied for ABN as sole trader. I want to make sure several things.

    1) Is it necessary to make a business contract?

    2) How could I charge this deal ? Am I eligible to charge via customers’ credit card? Should I log this transaction for tax purpose?

    Thank you in advance.

    #1162644
    Tony Manto
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    Its hard to answer your question without more information. You can charge anyone for work you do with or without an ABN. Having an ABN makes it more official and people trust you more, but in essence you don’t need it to do business. However if you do want to operate as a business its best to have an ABN. You don’t have to charge or lodge GST unless you generate over $75K. Depending on the type of work you do, you may or may not want to have a contract. It doesn’t hurt but a bit formal for smaller transactions. Lastly but no lest, you can charge someone’s credit card, but you need to set this facility up with your bank. You will need a merchant number. I get people to EFT me my payments. You can also set something up with Paypal. You will need an account and people pay Paypal via a link and Paypal pay you less a small transaction fee.

    #1162645
    Water.Surge
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    Thank you for your professional reply :)

    My business is to provide IT service and consultancy. Given there are loads of small transactions, my concern is how to track every transaction easily and pay corresponding tax. As you suggested, I would probably set up one merchant account and keep every piece of information.

    By the way, should I pay tax quarterly or at the end of financial year? Should I seek an accountant?

    Tony Manto, post: 188001 wrote:
    Its hard to answer your question without more information. You can charge anyone for work you do with or without an ABN. Having an ABN makes it more official and people trust you more, but in essence you don’t need it to do business. However if you do want to operate as a business its best to have an ABN. You don’t have to charge or lodge GST unless you generate over $75K. Depending on the type of work you do, you may or may not want to have a contract. It doesn’t hurt but a bit formal for smaller transactions. Lastly but no lest, you can charge someone’s credit card, but you need to set this facility up with your bank. You will need a merchant number. I get people to EFT me my payments. You can also set something up with Paypal. You will need an account and people pay Paypal via a link and Paypal pay you less a small transaction fee.
    #1162646
    Tony Manto
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    I am not qualified to give Accounting advice.

    I think if you are over 75k the tax department will want you to lodge a BAS.

    #1162647
    Anonymous
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    Hi Walter and welcome to Flying Solo,

    It’s a good idea to consult an accountant before you get started with your new business. They can help you make sure that you’ve got everything set up correctly so that there are no surprises at tax time.

    All the best,
    Jayne

    #1162648
    Anonymous
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    Hi again Walter,

    Sorry that I didn’t think of this yesterday, but if you’re unsure about whether you need an ABN, this webpage should answer all your questions. It also contains links to other handy info about tax office requirements.

    Good luck,
    Jayne

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