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Get your business ready for EOFY

Get your business EOFY ready with tips from Flossi

Get your business ready for EOFY

Traditionally the end of the financial year or EOFY, as those of us in the industry refer to it, conjures up nightmares for business owners. It’s like someone has drawn a line in the sand, a deadline looms, and to stay in business, there’s an imaginary test that you need to pass. Rather than approach EOFY with dread, I like to see it as a chapter closing and an opportunity for a fresh start. Here’s my checklist for a smooth run into the EOFY and roaring launch into a brand new start.

 

HAVE YOU MET ALL YOUR EOFY COMPLIANCE OBLIGATIONS?

First things first – if you’re not doing the books yourself, make sure you’ve got a great bookkeeper or BAS Agent on board. Let them know that you’re going to need some assistance getting EOFY ready; it’s their busiest time of the year. Always use a registered agent, so, while you’re at it, check this with the Tax Practitioner’s Board.

 

Once that’s done:

 

    • Run a payroll reconciliation and make sure you’ve paid your staff correctly throughout the year, particularly where JobKeeper is concerned. If not, rectify this in the final payment of the year;

 

    • Schedule the final pay for the year and make sure it leaves your account on or before 30 June;

 

    • If you’ve been receiving JobKeeper for June, the payment won’t hit your business bank account until early July so ensure you’ve accounted for this correctly in your accounting software;

 

    • Pay any super guarantee (SGC) owing for your staff. Super for the month of June can be paid in July. If you’re a sole trader, consider paying yourself some super as well!

 

    • Look at your accounts payable and accounts receivable – have you invoiced everyone you need to for the current financial year? Are there any bad debts you need to chase?

 

    • If you’ve got a product-based business get ready to do your annual stocktake and returns of unsold, broken or damaged stock;

 

    • Gather all of those pesky receipts and enter anything that you might have missed, particularly cash-receipts, into your accounting software;

 

    • Have you got any outstanding obligations with the ATO? If you so contact them and sort out a payment plan;

 

    • Get everything ready for your bookkeeper, BAS or tax agent:
        • Keep in mind that if you employ staff, wages must be reconciled and data sent to the ATO no later than mid-July;
        • Receipts (if you haven’t entered them already);
        • Bank statements for ALL of your business accounts at 30 June;
        • Paperwork, such as new leasing or hire purchase documents, loans, or anything related to new capital expenditure that will help the year-end run smoothly.

 

 

ASK YOUR BAS OR TAX AGENT ABOUT POTENTIAL DEDUCTIONS 

Ideally, you would have had this chat long before EOFY. However, if that’s not the case or you’re going it alone, here are some potential business deductions to consider:

 

    • New equipment purchased for the business – currently, the instant asset write-off is $150,000. All purchases need to be made before 30 June to count in this financial year;

 

    • Do you operate a home-based business, or have you been working from home over the last few months? You could be eligible to claim expenses such as a portion of your internet or your utilities;

 

    • Travel expenses that you might have incurred for your business;

 

    • Motor Vehicle expenses, including fuel, registration and insurance;

 

    • Business insurance;

 

    • Advertising and marketing costs;

 

    • Consultant fees;

 

    • Have you gone digital over the last few months? If you’ve invested in a new website or bought subscriptions to online platforms such as Lead Pages, Mailchimp, Thrive Architect, for example, these are all potential deductions;

 

    • Have you pre-paid any expenses such as rent or subscriptions?

 

    • The ATO has created an app for small business owners that advises potential deductions and can also help you capture data for your return. Check out the information here.

 

PREPARING FOR THE YEAR AHEAD       

Now you’ve closed off the books, it’s time for some ‘new year’ planning. Here are some things I suggest to help your business roar into a new financial year. Brainstorming session required!

    • What are your goals for the new business year? Set some! Where do you want to see yourself this time next year?

 

    • With this in mind, prepare a budget – some might say boring, but it’s a great way to review your income and costs.
          • Consider a review of your insurances, utilities, subscriptions and look for cost savings.

 

    • Set up a cash flow forecast so you can manage your payments throughout the year;

 

    • Look at your product offerings:
        • Are they profitable?
        • Are you attracting your ideal customer?
        • Do you need to diversify your income streams?
        • Can you see potential niching opportunities in your business?

 

    • Review your advertising and marketing strategies. Don’t forget to look at your social media channels and your website as well. Are you:
        • Grabbing the attention of the clients you want to attract?
        • Do you need to review or beef up your content?
        • What can you add, delete or change in your current strategy to give you the edge?

 

    • Look at the way you work. Is there room for improvement or change?
        • Do you need to streamline your business?
        • Has working from home worked in your business? Can you continue to work this way and cut some of your business overheads?
        • Do you need to look at new business tools to assist workflow and efficiency?
        • Review your processes and procedures.
        • Is it time to reward or incentivise your staff – look at bonus structures or promotions.
        • Consider outsourcing where you’re struggling – work smarter not harder this year.
        • Think outside the box – the sky is the limit.

 

Here’s hoping you breeze through EOFY and that the new financial year sees you kicking goals.

If you’d like some help with any of the above, why not check out my Business Reboot to help you on your way.

 

 

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