Getting into Business – Part 1

Where can you get assistance to plan your business?

Make sure you choose the right professionals who will provide you with the right advice and support. Before setting out in business get in contact with the following people:

  • Accountants
  • Lawyers
  • Bankers

 

Business Structure

Make sure you consider the advantages and disadvantages of each of the following structures. If you decide to setup a Company or Trust you will need to understand your obligations of becoming a Director or Trustee.

  • Company
  • Sole Trader
  • Partnership
  • Trust

 

Compliance considerations for business

Discuss with your professionals and understand the businesses requirements and your obligations in the following areas:

  • Taxation including: PAYE and GST
  • Employment
  • Health and Safety
  • ACC
  • Companies Office

 

Accountancy Software

The correct accountancy and payroll system will cut down the time you spend on administration and give you more time to work on making your business a success. Your accountancy system should give you instant up to date reporting to track the performance of your business.

 

Here are some programmes you need to consider:

  • Xero
  • MYOB
  • Banklink
  • Smartpayroll

 

Forecasting & Budgeting

Before you set up shop you will need to work out how much working capital and finance you need to get the business up and running. Having the correct amount of working capital is paramount to any business to ensure the business can afford to grow and expand. Most banks will require you to provide forecasts to support any business purchases or start-ups. Your accountant can help you with these forecasts.