Kevin Cotter has worn many uniforms in his career.
From patrolling some of Sydney's most challenging streets as a member of NSW Police, to time spent in the Royal Australian Navy, as well as the Army Reserves, Kevin has an affinity for both the Veteran and First Responder communities.
It's in his role as a Certified Practicing Accountant, and owner of Van Cotter Partners however, where Kevin now supports individuals and businesses.
Kevin recently hosted one of InnoClub's online workshops, Business Accounting 101, and provided some invaluable advice to a broad range of participants.
For those who couldn't attend this workshop, the following summary outlines some of Kevin's key accounting considerations.
1. The importance of the right business structure:
There are many different ways that people can structure their business, and not getting this critical first step right can have significant impact.
Kevin shared some of the most common reasons why start ups get this wrong:
lack of knowledge, or reliance on "Dr Google"
incorrect advice
the way it's always been done, and even ...
"that's what my brother in law told me"
In identifying how best to structure a business, some of the key considerations include:
asset protection
costs and savings
taxation benefits
future plans and goals
insurance
size and complexity of the business
Getting it wrong can have significant impact; from missing significant opportunities and advantages, to incurring avoidable tax assessments and breaching legal obligations.
2. Accounting Systems:
Having good systems can make meeting your business's legal and regulatory requirements much easier.
Kevin outlined some of the more common resources available, from off-the-shelf packages to the humble Excel spreadsheet. Main systems reviewed included:
Xero
Quickbooks, and
MYOB
Of course, selecting the right system should be done in consultation with your accountant.
3. Tax Considerations & Common Mistakes:
The workshop was rounded out by Kevin sharing some of the most common areas where businesses get into trouble through incorrect accounting procedures.
Some of the regular "traps" include not properly accounting for the following:
Depreciation
Entertainment
Superannuation
Director Money and Loans
Fringe Benefits
Motor Vehicles
Personal Services Income versus Personal Services Business
Stock
Seperatley, Kevin highlighted other taxation-specific areas as being potential problems, such as GST, Capital Gains Tax, and Income Tax / Pay As You Go Withholding / Pay As You Go Instalments.
InnoClub Business Essential online workshops are ideal ways for business owners and budding entrepreneurs to quickly learn the fundamentals to start, run and grow their business.
If you have specific accounting needs or questions, please feel free to reach out to us and we'll connect you to Kevin and his team.