How you can better prepare for the end of financial year
It is only a couple of months out from the end of financial year (EOFY) – and it’s better to be safe than sorry. As an SME, we understand that your business is already under the pump, but it is important to be on top of everything so when the time does come to get your tax affairs in order (and it will!) you’ll be prepared. This three-part series will help you get prepared for EOFY, and run you through a few things to keep in mind in the lead-up to 30th June.
So what’s the big deal?
As a growing and thriving SME, it’s key for you to you remain on top of this critical time of year. It’s time for renewal, a fresh start and revisiting old goals and setting new ones. Making small steps now can bring up potential problems, allowing your business to be on top of these issues before they arise.
Let’s get on track
To get you started, The Spotcap team have come together to compile a list of our top tips, to help you best prepare for the end of financial year.
- Our first recommendation would be to get everything into some sort of system. Avoid doing this step manually and use some accounting software. There are many different types available on the market, but do some research to find out which one is best suited to you and your business.
- Next, ensure that all your financial affairs are in order. Be sure to check that all your expenses have been reconciled and review your balance sheet to be on top of any potential problems with cash flow in the future. If you’re having issues with cash flow, see Spotcap for flexible and accessible unsecured business finance. At this time, it could be helpful to write-off any bad debts at this point, too. You have a few months to get these in order – and it’s best to not leave this to the last minute.
- Prepare your budgets. This can be a little bit of work but it’s important to have your expense and sales budgets prepared, alongside other important information such as a breakeven analysis. Once again, this is about making small steps early and being prepared for this busy time of year.
- It’s time to revisit last year’s goals and vision and assess how you’ve performed and what’s needed to steer your business in the right direction. This is something to think about and reflect on in the lead up to the 30th June.
A strategy that may help
One tax strategy worth highlighting that some businesses may find helpful is paying for tax deductable expenses at the current moment and deferring income to reduce taxable income for the financial year.
This blog post should hopefully be enough inspiration to get you started. Small steps in the lead-up to EOFY will make for an organised business when it comes to crunch time. Don’t be the business owner who has their desk full of scrunched-up receipts and old pieces of paper out of the car glove box! Be prepared, and avoid the stress associated with leaving tax time to the very last minute.
Stay tuned for part two of three of our EOFY guide.
The Spotcap team
Originally published May 1 2017 , updated May 4 2017