Why you Need a CPA for your Small Online Startup in Davao Plus Tips and More
Philippine laws on the internet aren’t quite as stringent compared to that of other countries. Unlike its counterpart Asian countries such as Saudi Arabia, North Korea and China; no bans, censorships or any restrictions are in effect here, making the Filipinos one of the freest online citizens.
This means that if you’re setting up a small online business that won’t do any illegal activities (but beware of the new Cyber Crime Prevention Act) in the country then you will be doing just fine. When will you need financial help from Certified Public Accountants in Davao?
That would be a separate problem since for any startups, online or not; financial matters are at the core. But don’t forget all the other issues that must also concern you.
The Process and Tips
Like any endeavor, online businesses follow procedures before realizing its fruition. Here are snapshots with details below:
- Opening a bank account
- Securing a niche or market base
- Understanding your profile
- Having a creative but simple name
- Registering a domain name
- Your equipment
- The offerings
- Internet marketing
Why do you need a bank account? Any business sure needs funds to fuel it and e-commerce is no different. There must be capital in any business undertaking. Make sure you have saved up on some money while you’re still working your day job. And a bank account solely dedicated to business matters will save you on intertwined personal account woes.
What’s a market base? Any new business needs study and extensive research of current conditions in the given market you are about to enter. Like traditional companies, you should conduct competitor analysis, product research and audience survey to assess what types of clients would surely flock your online startup.
What’s your background? You need to understand your current situation. Are you a home-based mother, an overseas worker or a skilled professional juggling daytime job and possible online business? You should also consider your expertise. Are you a baker or a skilled artist? These skills should matter to your online business ideas.
What’s in a name? A lot. And your business’ identity also relies on it, especially that a swarm of many other companies are present online. Getting unique can become as hard as it gets.
Having any techy problems? You don’t need to hire webmasters or computer majors to help you build a website. There are free methods to do so which is identical to blogging, try WordPress. There are also cheaper alternatives to towering giants in the web hosting industry such as webfocus.ph and 1pesohosting.com.
What about the equipments? Having a simple laptop or desktop PC of your own is an advantage. You get to secure your online transactions. There are also rented ones but they put you on more risks. Make sure that you have stable online connection though.
What do you offer? This is where the contention on being unique comes in. Are you an innovator or do you blend in competition? Whatever service (outsourcing office solutions) or product (cosmetic or health) you offer, make sure it stands out in usability and durability.
How about your manner of selling? Why do business owners say that marketing is one of the most important aspects of maintaining a healthy business? It’s because without it, you’d get no customers and that means zero balance. You get the point? Be aggressive or do some search engine optimization. Otherwise, email marketing and social media marketing also works.
Expected Problems
In this case, a startup is not complete without challenges and so here are the common hurdles you’d encounter:
- Taxes – remember that it is still a business so it needs to be taxed. If you’re just putting up an online business, by the time you reached years in operation, you’d find you owe the government more than what you earn. All because you didn’t hire a CPA in Davao in the first place.
- Lack of computer/internet expertise – Come to think of it, it’s online but it also has its disadvantages. If you’re not savvy, you may have your site bogged down by hackers or malwares. Also, internet marketing is difficult to handle for beginners since it’s a skill you need to develop over time.
- Privacy and security concerns – this is especially true for online payments where your clients entrust you their money for what your product is worth. PayPal is worth trying.
- Copyright infringements – it’s the world wide web, which means once you’re connected, you are plunged into the world at once making it difficult to monitor whether you’re already infringing intellectual properties or not.
- Scope and limitations – if you’re bound to sell products that rely on the senses to be effectively marketed then the internet will be difficult to conquer. So it’s important to come up with business ideas that are edible for online consumption.
Why you need a Davao CPA?
You might tell yourself that in the few months of online business operation, you can handle all the taxation yourself; much like how you handle your own business alone. But this will not be the case in the long run.
Income tax deadlines that loom every April aren’t your friend. Consulting with an accountant who knows how it’s like doing online business is a must. Do so every December if you’re handling your own quarterly tax obligations, why?
- It helps you come up with strategies to save on your year-end estimates and probably apply this right away come the deadline AND
- If the accountant has had prior experience working with other internet entrepreneurs, they’d know what to ask you and to respond on your pressing questions such as how much you spent on each employee (which may be less than physical businesses or virtually none at all) or on equipment (which is roughly just your laptop and internet connection if you don’t deal with finished products). Accountants who know the grind in online businesses are a perfect fit.
Would you rather risk your taxes to be entangled in the future to take that decisive action now? Professional and certified accountants are there for some worthy consultation time. All it takes is a call to change the direction that your online startup is heading to.