Side Hustles
Just Starting Out
Starting a side hustle can be daunting, and the most common question is “How do I pay my Taxes”. Most people will start their side hustle under their own name (As a sole Trader) with the hope one day of leaving their job and being able to work for your now fledgling business. But where to start…
First off, if your Side Hustle is less than 60k and you have no employees, starting out is a sole trader is great – there is low compliance, and easy to set up.
When it comes to paying your taxes, you have two options:
- Using a product like “Hnry”. Your customers deposit their money into their bank account, add in your expenses and “Hnry” will work out & pay your taxes (and their fee) for you and deposit the remaining amount into your bank account. “Hnry” is a great low cost tool for when you are just starting out.
- Finding a Chartered Accountant (Such as us) to work with. Whilst a Chartered Accountant can be more expensive then using “Hnry” it can come with some added benefits:
- Can save you on taxes as Accountants have a more in depth tax knowledge and ability to interpret expenses
- Can help you grow your small business and understand your numbers better
- Are able to pick up the phone and speak to us at any time
Growth your Business
Whilst starting out as a sole trader is easy to set up and operate. Once you get to the point of GST Registering or Hiring staff, looking at moving your business into another structure (Such as a company) can be a good move.
Moving your business into a company structure (Whilst might cost a little more in compliance) can provide significant benefits:
- In other peoples eyes, a company can look more credible than a sole trader
- As a shareholder, you have limited liability for the companies debts
- Tax advantages such as lower tax rate, ability to pay salaries to all shareholders to take advantages of lower tax rates
- Easier to sell the business as it is a separate legal entity
- You can keep any GST or PAYE registration out of your personal name making you personal taxes much cleaner
Business Advisory
How do I grow? What does growth look like? Am I making Money? How do I make more money?
At JOB Chartered Accountants, not only do we deal with the your taxes, we can also help you to grow your business. Often the biggest mistake that can be made is increasing sales but not making any money. We can help you with:
- Business Coaching – if your feeling overwhelmed, we can help you on your business journey
- Forecasting and Budgeting – Forecasting allows us to predict what the business will look like in 3-5 years time.
- Management Reporting – We can provide monthly/quarterly/six-monthly reports showing you a snapshot into how your business is performing, and highlight areas that require work.
- Systems and process – Help you put into place tools and software that will help your business become more efficent.