I'm starting a business. Should I be a sole trader or a company?

There isn't a one-size-fits-all answer. I wish there were.

Many people start as sole traders because it's simpler and less expensive. However, as a business grows, it may provide better asset protection and tax-planning opportunities.

The right structure depends on factors such as your expected income, the risks involved in your industry, your future plans and whether you expect to bring in business partners or investors.

Choosing the wrong structure can cost you money and create unnecessary compliance headaches.

My advice is get professional advice early, but not too early. The timing has to be relevant so you can arrange other important aspects such as domain name registration, email addresses and business software.

I can help you choose the right structure from the start so you can focus on building your business, knowing you’ve got the right foundation.

Can I set up my business myself?

You can. The better question is whether you should.

Setting up a business isn't just about obtaining an ABN. It involves choosing the right structure, considering tax implications, registering correctly and making sure your systems are set up properly from day one.

I've seen many businesses spend thousands fixing problems that could have been avoided with a short conversation at the beginning.

Think of it like a haircut. We can all cut our own hair, but we all know how that turns out. The difference between a good haircut and a bad haircut is 2 weeks. The difference between the right business setup and the wrong one can be a very expensive lesson.

Do I need an ABN before I start trading?

An ABN is generally one of the first things you'll need before you start operating a business. It allows you to issue invoices, deal with suppliers and establish your business properly.

The good news is that applying for an ABN is relatively straightforward. The more important question is whether everything else has been set up correctly at the same time.

Many people obtain an ABN but overlook other registrations, licences and obligations that may apply to their business.

I’m behind in my BAS and tax. Can you help me get up to date?

Absolutely, I can, and I assure you that you are not alone – in fact, I do this all the time. I know how busy life can get sometimes, and tax compliance isn’t always your number one priority, but I can help get you up to date and keep you up to date, so you don’t have to worry about it anymore.

Can you help me with my bookkeeping too?

Absolutely! If I do your tax returns, I am more than happy to help you with your bookkeeping too.

There are so many accounting systems out there how do I know which one is best for me?

You know what? It’s tricky.

There’s really no easy answer here other than to either get professional advice from consultants such as myself or try different systems and see which one you ‘like’ best. The later option has merit as depending on the complexity of your business it may not really matter however if you have a few ‘must haves’ or have a complex business it’s always best to get professional advice.  

I strongly urge you not to listen to the hype from the software providers. Sounds obvious but I see all too often where people get sucked into buying a product because of marketing but it doesn’t do what they really need it to do.

MYOB or Xero?

The truth is, they are 2 completely different products, each suitable for different businesses.

The secret is to know what you need and want from your software. Some key questions you need to ask yourself are –

• Do you need inventory functionality, and if so, to what extent?

• Do you have an industry-specific software or CRM system you would like to link to your accounting software?

• Do you employ staff, and what are your payroll requirements?

It’s definitely not a simple out-of-the-box answer, and whatever you do, please don’t use the old ‘phone a friend’ to make this very big decision for you, unless that friend is in the same business as you.