What the EOFY means for your SME

June 26, 2019

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It’s 30 June and you’ve had another successful year of selling your goods or services to loyal and satisfied customers. Now what?

To make sure you are ready and raring to go for the next 12 months, it’s time to get your business in order. While each business will have their own stocktaking, tax paying and claiming, and superannuation considerations, all have one thing in common and involve managing your funds!

Try following this simple three step guide outlining how you can get your affairs in order at the end of the financial year.

Always make time for reflection

Just as many would do in their personal lives, the beginning of a new financial year is a good time to reflect on and potentially re-asses the goals, objectives and achievements of your business. During this reflective period, ask yourself:

  • Has my business achieved what was intended over the last 12 months?
  • Are my team meeting expectations and deadlines?
  • Have I set a realistic budget for the next year?
  • Are there any changes that need to be implemented?

Answering these simple questions will allow you to evaluate your current performance and reveal areas that could be improved upon for the following year.

Avoid tax time splurging

It may seem like a worthwhile investment at the time,but  buying something for the sake of it or to save a little on tax is never a good idea. A deductible purchase is just as deductible in October as it is in June, so what’s the rush? When managing your funds around tax time, try to ensure you are only making educated purchase decisions (hint: maybe you need to invest in some of the changes you identified earlier?).

a business stocktake

While following the advice of your accountant is crucial to efficiently managing your funds, conducting your own business stocktake is a good way to analyse where your business currently sits and where it is heading in the future. A thorough stocktake can also provide insight into your business purchasing habits and requirements, and motivate you to more critically evaluate these decisions.

 

These three handy tips will not only ensure you are well prepared for the coming financial year, but are a sure-fire way to uncover any holes in your cash flow. For more advice on how you can prepare you business for the EOFY, get in touch with the Timelio team today!