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Small business accountant in Melbourne tells you what are the common mistakes that startups should avoid

When you are starting a new business, you need to plan for this, that and everything. And the deadliest mistake a new startup can make is not doing budgeting at all. Budgeting isn’t an easy task but without one, how will you know the amount of funds needed to start a business and how to allocate the funds? Budgeting is such an important task and it is the first step to success. If you can’t do it yourself, engage a professional to do it with you. A little investment in the beginning is necessary for long-term success.

The next mistake is not allocating funds for marketing. Marketing is very crucial to get your business out there and bring people to you. How much to allocate you may ask? At the beginning you might need more funds for tasks like building a website etc., but as you go, you can try to aim for at least 5% of your projected annual revenue.

Another common mistake is the failure to distinguish between fixed costs and variable costs, which will lead to miscalculation of your break-even point.

Start-up owners often underestimate their startup costs. Why so? Because of the lack of knowledge therefore, some costs were not taken into consideration. Do not be surprised to see how much your startup can amount to. To ensure accurate estimation and budgeting, engage a professional who is capable to advice you on legal requirements and expenses.

If you are looking for someone to help, contact mas soon! Based in Sydney and Melbourne, we are a group of professional accountants who are passionate in helping small business owners to manage their financials.

 
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