Freaking out about your end of financial year obligations? We've got you covered.
But first, a little background information.
The latest MYOB research reveals that nearly one third of small to medium enterprises (SMEs) worked weekends to meet their obligations last year.
Some 20 per cent worked beyond midnight, ten per cent had been unable to take planned holidays and seven per cent missed an important family event.
Almost one third of operators started planning their paperwork at least one month before June 30, while a further 23 per cent got moving in the weeks prior to the date.
MYOB CEO Tim Reed said 64 per cent use an accountant while 13 per cent use a bookkeeper to help them with compliance.
"Paperwork that’s well organised means fewer ongoing tax time tangles for you, your employees and your loved ones. It frees up your time, so you can focus on growing your business and doing what you love."
Here are some tips to stay on top.
Meet with your business advisor before the financial year ends
Failing to plan is planning to fail, as they say. Potentially save time and dollars by meeting with your business advisor before the financial year finishes. The benefit of hindsight is a wonderful thing, but it doesn’t enable your advisor to supply valuable advice once the financial year has finished. Ensure your info is up to date so that your balance sheet is accurate and reflects your business’s true financial position.
Get organised
A pile of confusing receipts, unfiled invoices and no system to manage them is not the best way to run a healthy business. Set up a bookkeeping system and document your process. Your accounting software contains helpful steps to follow. And remember: maintaining and updating your business records regularly will help alleviate pressure. Consider blocking out time in your diary for paperwork each week or fortnight.
Plan your tax
Your business advisor can help you estimate what your tax situation will look like for the April to June quarter before it finishes. Tax planning should be long-term - the decisions you make today may impact your business for years to come. For example, do you want a tax deduction on your superannuation contributions? Or are there any potential deductions, write-offs and rebates that you can take advantage of? Take action prior to June 30.
Revisit your business plan
This period shouldn’t be all facts, stats, dollar signs and reports. Now is an ideal time to either write a business plan or reassess the one you have to ensure you’re on the right path for this financial year. Strategic planning is essential to maintain your business’s ability to stay healthy, adapt and grow over time. Having a passion for what you’re doing is very important – it will carry you through the late nights and long weekends – but it’s not a substitute for a solid business plan.
