Beginner’s Guide To Starting An Unincorporated Business
When starting an enterprise, business owners need to understand how to minimize costs, reduce their tax burden and stay compliant. It requires meticulous record-keeping and sound decision-making. However, owners don’t always make the right choices when launching a business.
Sometimes these seemingly small choices have snowballing consequences later down the line. Therefore, it’s good to forecast some of these starting snowballs in a year or two when time is precious and controlling cash flow is challenging.
To ensure you can start your business on the right foot, Ocean Breeze CPA has put together a beginner’s guide to starting an unincorporated business. Through this guide, you will feel confident of smooth sailing through the early years of business.
Getting Started
Conduct general research: Do some research on the internet about the “business of being in business,” not just about your field of expertise. Keep in mind that an ounce of research and questions is worth a pound of cure.
Speak to peers: Talk to others in your business community about steps they would or should have taken had they known what they know now. Ask them for their “words of wisdom” and listen closely.
Next Steps
Hire a professional: The following are points to beware of and discuss with someone knowledgeable about the process.
- Every business owner should know when to register for GST and on what schedule, whether they need to register for payroll accounts and a business number.
- They will also need to learn how to invoice and record sales figures and costs, even if it’s just in a spreadsheet.
- They need to understand whether or not they need WCB coverage.
- They should appreciate the benefits of opening a business bank account and ensuring ALL business activity and nothing else gets run from that account.
- Finally, they will need to ensure that they make appropriate tax withholding during the year, including from their personal income, so they have ready cash for their year-end tax bill.
Advice From The Pros
Be aware of tax: Not putting aside enough to cover GST or personal taxes is a shock for many small business proprietors in the first year. You can avoid the shock by budgeting and opening separate savings account to deposit the money held.
Begin immediately: Start right away on maintaining order in your books, bank account, and reporting. Remember, following a process from the start is more manageable than rebuilding things later.
Learn basic accounting: Think beyond your particular field of expertise, whether that is food preparation, home-building services, septic flushing, and everything in between. As a business owner, you will now have to have at least passing knowledge of business realities, e.g., taxes, human resources, payroll, cash flow, and business planning.
Get in touch with us today!
At Ocean Breeze CPA, our goal is to exceed your expectations. As the go-to experts in Sechelt, Sunshine Coast, for all accounting needs, you can feel confident about setting up your business with us.
We specialize in personal tax returns, new business setup, sole proprietor bookkeeping/ income tax preparation, business accounting, and bookkeeping.
We serve clients across Sechelt, Gibsons, Roberts Creek, Madeira Park, Pender Harbour, Powell River, and the rest of the entire Sunshine Coast.
Visit our website to learn more, or call (604) 885-0366. Alternatively, you can email info@oceanbreeze.ca.