"Build your own business and give yourself choices"

Business Accounting
for Home Based Business

No matter what the size or location of your business, you will have a business accounting responsibility - predominantly for tax purposes.

Exactly what you need to do, and when, will be determined largely by Government requirements, but that is not all that business accounting is about.

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Small Business Accounting

As you start out in business; yes, even for the small home based business; you need to get advice and set yourself up properly for appropriate monitoring and record keeping.

Not only is it about tax, it is also about being able to accurately monitor how your business is doing.

  • What are your expenses?
  • What is your income?
  • What is the profit margin on your sales?

    And at the end of the day...

  • Am I making any money?

    Seek Professional Accounting Advice

    This is a very simplistic approach, but it is designed to get you thinking, and then to seek professional accounting advice.

    While many are reluctant to pay for advice, it is a genuine way to ensure you are on the right track and will not face costly mistakes further down the track.

    You also do not want to spend more time on "watching" your business and its progress than you spend working on it!

    Getting good advice should also help you achieve a balance between keeping good accounting information that is useful, and getting on with growing your business.

    Choosing the Right Accountant

    Different accountants have different areas of expertise.

    You want to find a professional that has both clients and experience in the area you are working in.

    For example, if you are selling retail products you probably don't want someone who specializes in farming. Or if your business is online it would be helpful to use someone who is knowledgeable in this area.

    I made this mistake early on. I took advice from a person who was helpful, seemed like they knew what they were talking about, and outwardly confident with their advice.

    The problem was that I didn't know what questions to ask. I didn't realize it was a good idea to ask more detail about who their clients were and the types of industries they were experienced in.

    Suffice to say this caused me to set up my business structure incorrectly, and it took another couple of years to correct it!

    So don't be afraid to ask a lot of questions to be sure they understand the type of business you have, and any needs specific to you.

    Your personal situation is also very relevant as this will determine how you operate as well as what you intend to do in the future with your business.

    Here is a link to an article that is helpful making your choice.

    Go from Business Accounting to Legal Advice