Starting a Home-Based Business in Melbourne

Melbourne does not only shelter large corporations; it is also home to many small and home-based businesses. In fact, a huge percentage of Australian business community is represented by independent contractors, sole proprietors and start-ups operating from their own abodes. Well, as they say, there’s no place like home and it looks true even in money-making endeavours.

Getting Started

A home-based business has many benefits including comfort and tax deductions from your rent and utility bills. However, it is not without challenges. For one, without focus, it’s so easy to slip back into comfort. There’s also the issue of hiring people. Should you allow your Melbourne small business accounting firm to have a desk inside your home? It’s best to address such issues prior to starting your home-based business – but first things first.

Soon as you have a concrete business plan, determine if your home is suitable for your business especially if you are going to entertain clients. It’s also recommended to have a room or area that will serve as your office and equip it with needed tools and supplies. Make sure to comply with local and neighbourhood requirements as some home businesses need special permits to operate. Inquire about insurance, too, since it may not be covered by your current policy.

Tax Deductions

Owners of home-based businesses may be thrilled upon hearing tax deductions for the usual home expenses but this is not unlimited. Especially if you don’t have an accountant or Melbourne small business accounting firm, it’s important to know which ones are deductible and under what conditions. For example, you can only file for running expenses if you don’t have a corner or room that’s solely for your business. These include cleaning, phone, internet and electricity costs. Those who have set an area for their business can also file for occupancy expenses that include insurance premiums and rent among others.

Do check out the web site of Australian Taxation Office (ATO) as it provides a comprehensive guide for small businesses concerning taxes and deductions. While it’s good to have a Melbourne small business accounting firm or any other finance professional handle your tax concerns, it won’t hurt to keep yourself up-to-date as well.