Small businesses in Australia, those with less than 20 employees, account for almost 98% of businesses and 35% of Australia’s gross domestic profit. Small businesses are crucial for the economy and the workforce and are found in all sections including construction, transportation, landscaping, vocational education and training, as well as retail.
|Sole traders (0 employees)||62%|
|Micro business (1-4 employees)||27%|
|Small businesses (5-19 employees)||8.5%|
Operating a small business can be time consuming and often your resources aren’t as extensive as larger organisations. That’s why, to help make our businesses successful we contract help from the experts. But who do you need to help run your business?
IT Service Providers
Small businesses may have fewer staff and resources than a medium or large organisation, but that doesn’t mean their needs are considerably less when it comes to IT requirements or support. Many small businesses use systems and software to help run their businesses. Whether this is to help with managing sales, marketing, logistics or finances, the technology required to deliver these services are heavily relied upon and therefore need to be managed by a professional.
Small businesses also need to use desktops and mobile devices, manage cybersecurity, and monitor business compliance and changes to legislation. The right IT professional will work with their client to understand their business and the complexity around their requirements and tailor the right IT support solution for them.
Bookkeepers assist small businesses by tracking, monitoring and reporting all the financial transactions in the day-to-day operations. They are responsible for providing accurate, up-to-date financial information to the business owners and managers. Areas that bookkeepers manage include:
- Processing expenses, sales, accounts payable and receivable
- Data entry and record keeping
- Generating monthly and annual reports for clients and accountants
- Reconciliations against bank statements
- Processing payroll and staff entitlements
- Provide reporting for preparation of a BAS
Some bookkeepers can also provide tax services if they are a registered BAS agent (tax agent). These bookkeepers prepare and lodge BAS and IAS reports to the ATO on their client’s behalf. BAS Agents manage a range of tax related duties including:
- Goods and services tax (GST)
- Pay as you go (PAYG) instalments
- PAYG withholding tax
- Fringe benefits tax (FBT) instalments
- Superannuation Guarantee
Good bookkeepers will be able to immediately step in and work for a small business without much delay.
Accountants handle more than just payroll and tax returns; they are responsible for keeping and interpreting a small business’s financial records and for ensuring that these records are compliant with the relevant laws and regulations. They prepare documentation and provide advice for small businesses in many areas of finance and tax. Whether a client is looking to establish a small business or grow their existing business, an accountant provides crucial support.
An accountant will, inter alia:
- Provide advice on the commonly used business legal structures including sole trader, partnership, company and trust.
- Assist with understanding or preparing financial records when buying or selling a business.
- Provide advice and prepare reports and documentation when applying for a bank loan or overdraft.
- Analyse and provide insights on a client’s financial position to help reduce costs, increase revenue and maximise profit.
- Conduct forecasting and risk analysis.
Marketing and Sales Professionals
Small business owners and managers are very good at what they do, but sometimes they may require assistance growing the business and introducing their product or service into the market place.
There are so many different channels to the market that it may be hard to understand what is the right one to advertise through or where to spend the budget. That is where marketing and sales consultants work very closely with their client’s to understand their business objectives and offer, identify their target consumer, and use that information to develop the business brand and marketing or sales strategy.
Depending on the small business’s requirements, these consultants will create and initiate a plan that can be managed long-term either by the consultant or the client.
Professional associations are an opportunity for small business owners and managers to engage with their industry, increase their knowledge and grow their network through ongoing learning, conferences and networking events. Joining an association provides a small business with a much wider network to lean on and learn from for industry and professional matters. Some associations also provide a mentoring program where an individual new to the field can work closely with an established one for guidance and advice.
Local Chamber of Commerce
A small business’s local chamber of commerce is the voice of the local business community. They work with local businesses to identify needs and interests, and offer relevant programs, events and advice to address these topics. They also work with local, state and federal governments to find and create solutions for local business issues including plans to propel and grow the economy in the area. The local chamber of commerce provides business owners with an opportunity to network with like-minded individuals and businesses.
Talk to us today and let us help with your bookkeeping.