The end of the financial year (EOFY) wraps up this weekend. If you have an accountant they would have already been in touch to make sure you are organised. As well as making sure you are meeting all of your business obligations, use this time to review your performance and set goals for the next financial year.
To finalise this year sole traders and partnerships using myTax, will need to lodge their tax by October 31st. If you’re lodging through a registered tax agent small companies generally need to lodge by February 28th2020.
There are four ways to end and start the year effectively for your small business.
1. Get organised
Finish this year the way you want to start next year – being organised. Have all of your ‘books’ sorted. If you use a shoebox, accounting software or a cloud based solution the basics remain the same: have everything ready that needs to go into your profit and loss statement and your balance sheet. That is – the details of all of your transactions, your assets and stock, debtors and creditors.
Your balance sheet will show how financially healthy your business is (or not). You should be reviewing this quarterly anyway.
If you have employees you will need to ensure you can produce payment summaries and you have made the appropriate superannuation contributions and check to see if you are liable for any fringe benefits tax. Make sure you are signed up for single touch payroll (STP).
What deductions can you claim?
Should you consider the Federal Government’s instant asset write-off scheme (it allows businesses with less than $10 million in turnover to write-off the business portion of a purchased asset. Whether it’s a vehicle, a piece of plant or equipment, the entire cost of the asset must be less than $20,000)
Back up your data.
And if you are using a shoebox – you might want to reconsider an easier solution...
2. Review your targets
Pull out your business and marketing plans. Did you satisfy your business ‘why’? Did you hit all the targets you had in place for the financial year just gone?
Undertake a SWOT – how did you play to your strengths, overcome your weaknesses, manage threats and take advantage of opportunities? Are there additional factors that need to be considered in your SWOT for next year?
Are there any risks to your business? Is your data safe? Review all of your policies and procedures to ensure you are maintaining a high level of cyber security.
3. Get rid of stuff
Go Marie Kondo on your business. Does what you do bring you joy?
Do you have any unwanted assets you need to get rid of? Should you replace old with new or lease new equipment?
Do you have old files that need to be shredded?
Are there clients you would be better off without? Do you have any customers who drain you of energy, who constantly ask for discounts or scope creep?When it comes to your revenue, they may be costing you more in lost time and motivation than they’re worth.
Can you get a better deal from your bank, your suppliers? Can you negotiate your insurance, phone plans, utilities, business supporters?
Does your business model and structure still support your goals?
4. Plan for next year
What are your personal, professional and business goals and how are you planning on achieving them?
What can you do differently for the next 12 months to propel your business forward?
Where can you save money and time?
What systems and processes could work better? What could be automated?
How will you manage your time to ensure you are working on as well as in your business?
For further information – get in touch with your accountant or contact the ATO.
If you are struggling to work out where to start to improve your business, you might want to consider a business strategist as part of your budgeting for next year. If you would like to spend more time working on your business than in it and you enjoy the company of likeminded business owners - you might want to start a group with Beyond Business Groups.