Men Magazine

  • Written by TAL’s Head of Financial Health, Jo Hetherington

By Jo Hetherington, TAL Head of Financial Health

1. Explore your options when it comes to deciding on your business structure

One of the key decisions you’ll make when starting a new business is what structure to operate under with regards to whether this would be best set up as a sole trader business, a partnership, a trust or a company structure. Your business structure identifies how you operate and will be dependent on the size and type of your business, your plans to expand the business, and your personal circumstances.

It’s important to choose a business structure that enables you to reach your unique goals as it can affect things like who is making the key decisions, tax advantages and disadvantages, how profits and losses are shared, as well as any legal obligations.

It’s a good idea to seek expert advice and discuss your proposed structure with an accountant or a financial adviser.

2. Consider the value of insurance

To ensure you’re protected, most self-employed people should consider a variety of insurance, such as business buy/sell, loan or key person insurance, public liability, and public indemnity.

As the owner of your own business, you are your most important asset. It’s important to consider how you or your business would survive financially if you had to spend months, or longer, out of business because of an unforeseen circumstance like an illness or accident.

Further, income protection and business expense insurance needs should be considered as these can help you stay on top of your business and personal expenses if you were unable to work temporarily, giving you time to focus on your recovery.

3. Stay on top of your taxes

A key consideration for people who are self-employed is to understand what you owe the government and what you can claim. To avoid any tax-time surprises, periodically review and think about your taxes throughout the year, not only at tax time.

Be sure to take advantage of any government support that may be available to you. As an example, you may be eligible to buy equipment for your business needs and access cash flow benefits from the Federal Government’s Instant Asset Write-Off Scheme. Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use. As of January 2021, instant asset write-off is only available for small businesses with a turnover of less than $10 million and the threshold is $1,000.

If you do have a particularly complicated tax component to your business, you may also want to find a tax accountant to help you keep tabs on your taxes.

The Australian Government Business Website has a range of information, grants, services, and support from across government to help your business succeed.

4. Keep your cash flow going

Cash flow is the backbone of your business.

It is up to you to keep money aside, and regularly setting aside a little extra will help you manage during any quiet periods or if something unexpected pops up.

To help with your cash flow, try to bill early and collect quickly. You can do this by encouraging your customers to pay on time (or even earlier) by offering incentives to reward early payment. Creating invoices that are as clear and detailed as possible can also guard against late payments.

The Australian Government My Business Health website provides some great tools, templates, and tips to help business owners manage their challenges so they can focus on enjoying their business.

5. Don’t underestimate your expenses

To get you started on the right path, you should be looking for ways to streamline your expenses. Focusing on spending only on what you need at the time will allow you to avoid over capitalisation.

As an example, when investing in facilities and equipment it’s best to start small and take your time comparison shopping before choosing vendors or service providers that can provide you with the best possible deal.

Being your own boss also means that you need to be responsible for keeping your financial records up to date. Be sure to keep accurate records so you can confidently navigate your books in the long run.


Steve ‘Commando’ Willis On Mind, Body, And Bank Balance

We’re quickly headed to that time of year where you start to feel like your finances are a little out of control. Levels of st...

Tips for managing your finances when self-employed

By Jo Hetherington, TAL Head of Financial Health 1. Explore your options when it comes to deciding on your business structure...

PayPal Is The Largest Non-bank Lender

Non-bank lenders have become a popular alternative to traditional banks when it comes to acquiring loans. According to data ...

Tips on How to Build Your Wealth

No matter where you are at in your life, it is always a good time to start putting money away, investing and building your w...

Study reveals impact of COVID-19 on Australia’s national debt

The COVID-19 pandemic has been financially challenging for millions, if not billions, of people around the world. But none...

Survey reveals what mortgage brokers really think

A survey of mortgage brokers from Australia’s leading mortgage broker platform HashChing has revealed the stake of broke...

Car Expense Calculator Highlights How Much Australians Blow on Their Car

Responding to an influx of Australians not sure what they were spending on their car each year - and finding out it is signi...

The Magazine

A Beginner’s Guide To Sipping Rum

Completely new to the world of dark spirits? No fear! I envy you and your virgin taste buds...Tasting rum is an experience for...

Fast Cars and Adventure - Investor Equity Crowdfunding Campaign

Luxury adventure tour company, Ultimate Driving Tours has [Thursday, May 27] launched its equity crowdfunding campaign with A...

Insight: The Fine Art of Car Detailing

If you’re not quite sure what car detailing is or believe that it’s basically the same as washing and waxing, we’ve prep...