Money Matters for Mumpreneurs: Tips and Tools

Today, in 3 minutes or less, you'll learn:    

1. My top six tips for sorting all the financial aspects of your business in its early stages   
2. If you are operating in Australia, you won't need to collect GST until you earn over $75K   
3. Setting yourself up well from the start will save time and backtracking later. 

Today, we're delving into the nitty-gritty of money management and accounting essentials to help you build a solid financial foundation for your entrepreneurial journey. Money management is a popular topic for mums starting their businesses, and it is so important to pay attention to. Let's dive into my top money-related tips.  

#Tip 1 Track your Income and Spending from the Start   

I recommend you practice basic accounting at the start of your business to keep track of your income and expenses and develop sound recording and record-keeping habits. Set up a basic Excel spreadsheet to track your early expenses and revenue. This spreadsheet should contain columns for date, description, and amount. Keep revenue and expenses separate to make it easier to track them. Also, record all amounts in Australian dollars from your credit card statement rather than the currencies you buy resources and courses.      

You can eventually put all your financial transactions on accounting software such as Quickbooks, Xero or MYOB (to assist with reconciling accounts, generating financial reports, and meeting tax obligations). Still, a spreadsheet will likely be all you need as a starting point.   

#Tip 2 Setup a Separate Bank Account   

Have you considered setting up a separate bank account? Keeping your business transactions separate from personal ones simplifies tracking and ensures accurate financial records. You can tie a new business account into your current bank accounts, but make sure it contains business-related transactions only. You can also set one up within minutes through an online form with most major banks – it can be quick, easy, and often fee-free, with the added convenience of accessing online banking and a debit card. You can also set up an app on your phone and attach this account to Stripe and PayPal when you start making money.   

#Tip 3: Store all receipts    

An important tip is to save all receipts in a physical folder/envelope or a virtual folder for emailed receipts to have them ready at tax time.    

#Tip 4 GST (for Australian businesses)   

You will likely not need to worry about GST in the early stages of your business (you only need to report once you earn over $75K). Did you see my newsletter about all the business basics you need to set up? Consider getting an ABN when you secure your business name and domains. Also, consider putting a 10% GST amount into your pricing to streamline future processes when you earn over $75K and need to start collecting it (so your prices can stay the same).   

#Tip 5 Business Tax (for Australian businesses)   

While you operate as a sole trader or partnership, any profit you make will be added to your personal income tax return at tax time. You will do this until you incorporate and become a company (a process you can go through where you spend money setting it up and have more compliance and reporting obligations but benefit from being a separate legal entity if anything goes wrong and a lower tax rate).  

#Tip 6 Get Expert Help Early  

If you need clarification, be sure to contact the experts and get some help. These may include accountants, lawyers, bank managers, bookkeepers, brokers, financial planners, and business coaches. You can't be expected to know everything at the start, and these professionals will be able to guide you in the right direction and help you set everything up properly.  

But try to learn as much about the financial aspects of your business as possible. It can be expensive, time-consuming, and risky to depend on others to handle all the financial aspects of your operations, so become as knowledgeable as you can as early as you can.