For a lot of businesses, it’s nearing financial year-end again. We know how tough it can be, therefore we found eight tips to get you through and make it a successful time.
Pay and clean up anything owing
Businesses need to make sure that at the end of the financial year, there is nothing outstanding. Everything needs to be closed off. This includes payments that have not been made or received. Once done, it needs to be cleaned up and cleared.
Be aware of relevant tax changes
It is critical that you are aware of any relevant tax changes which typically come into effect at the start of a new financial year. This will ensure that you are well-positioned to either capitalise on a positive change or are prepared for an adverse change for the next financial year-end season.
Get your tax-deductible expenses in order
An easy way for SMEs to claim tax deductions is to pre-pay relevant services and supplies. By bringing forward tax-deductible expenses and deferring income, you can reduce your taxable income for the financial year.
Keep your income-producing assets up to date
You can reduce operating costs, increase productivity and free up money by structuring your financing and repayments to suit your tax and cash flow needs. Make an effort to keep your income-producing assets up to date.
Write off bad debt
The average number of days that business-to-business payments are being made has increased and now sit at an average of 56 days. If you’re still chasing invoices from the last financial year, now is the time to write them off. Bad debts are tax-deductible and can be used to offset your taxable income.
Reassess your cash position
Starting the year with a healthy financial position is crucial. Ensure you review your money management processes and consider the most appropriate funding solutions. There are a number of cash flow finance tools to help you better manage cash flow.
Have an accounting spring clean
Make sure you review and update your accounting systems to include tax and other changes; as you do not want to have to back-pay items such as missed contributions or lose other potential tax-saving opportunities at the end of your next financial year.
Reward your staff and plan for the next financial year-end
The end of the financial year is always a good time to reward your hard-working staff and thank them for their contribution to your business. It may also be a good time of year to review their KPIs. Work on your refreshed business and marketing strategy, as well as a plan for the new financial year-end.
We hope you find these tips helpful and remember to have a look at the products QuickBooks and EasyBiz offer to make this time of year a little less stressful: EasyBiz Tech