Although business assets depreciate over time, the fact that you can claim a certain amount of money from wear and tear makes up for the reduced value. However, the only way you can claim depreciation on business assets is to prepare a valid schedule and submit it to the Australian Tax Office (ATO). Unfortunately, most startups think they can rely on an accountant to prepare a tax depreciation schedule. While it is true that tax accountants know much about tax laws, they know little about buildings and equipment.
Most small-scale business owners believe that they should only hire an accountant once operations are stable enough to accommodate such overheads. It can be attributed to the fact that small businesses try to keep their operational costs as low as possible. Therefore, hiring an accountant early on does not contribute to this objective. However, a recent study found that 82% of businesses fail due to poor cash flow management, which falls directly under the financial accounting field.
Choosing an accountant is one of the most important decisions any business operator can make, and there are a number of factors that should be taken into account. It is not a decision that only new businesses make, it is a decision that any company of any size is likely to constantly monitor and review.
Before deciding on the accountant, it is important to decide what role they are to play in the business.
Your business insurance policy has to cover a lot of eventualities. For example, you may need to insure your premises, your stock and equipment and you and your employees.
You also need to make sure that you are covered in case anything happens to anyone outside of your business in the course of your work. Typically, this is covered by public liability insurance; however, your insurance company may also offer product liability benefits as well.