While the end of financial year brings with it some predictable stress and confusion, this does not mean that your business must suffer. Though there are a lot of things to remember and many tasks that need to be checked off of your to-do list, going into this end of financial year with a clear vision will let you get through it smoothly.
By keeping some consistent organizational habits (like budgeting with a spreadsheet) throughout the year and with a well-executed plan, you can avoid many of the most common issues that arise at the end of the financial year. Don’t let your business fall victim to sloppy mistakes and roadblocks. With a little care and some careful planning, you can be sure that your business will be ready when the end of the financial year rolls around.
Let’s take a closer look at how you can avoid running into any unexpected issues at the end of the financial year.
Don’t Waste The Opportunity To Do Some Spring Cleaning
The end of the financial year is a great opportunity to clean up shop. While doing this in a literal sense is important, it is more vital to ensure that all of your business records and books are up to date and accurate. This includes profit and loss statements and bank reconciliation forms. Backing up your current data to the cloud is also an excellent step that you should take, to avoid any loss of information through an accident or natural disaster.
Prepare Tax Information Properly
One of the biggest tasks at the end of the financial year is preparing your tax information for filing. However, if you have been diligent in keeping track of the cash flow of your business as well as any possible new deductions or credits that will apply to your business, then this process will not provide too much of a hurdle for your team. However, if you have not been so careful or organized throughout the year, take the time to get your books in order now before the filing deadline arrives.
Make sure to file your taxes within the limits set by the Australian Taxation Office, that is July 1st to October 31st. Again, be sure to check that you are working with the most up-to-date regulations with respect to your tax authority. Tax regulations often change in minor ways and small business is usually one of the largest segments that is affected by these changes. Be sure that you stay informed to avoid making filing mistakes.
It is worth mentioning that the tax-filing season is a time to make strategic decisions with respect to expenses and sales. Depending on what your situation looks like this year, it can make sense to hold on to some assets and capital gains and liquidate them at a different time. In the same way, pre-paying for some expenses now can offer you the chance to deduct them from your taxes this year. Prepare yourself for a profitable new financial year by choosing the most economical route now.
Solidify Plans For The New Year
One of the biggest mistakes in small business is the lack of a realistic plan or the lack of a plan at all. Without mapping out where you want to be, your business will rise and fall as a matter of circumstance.
Preparing for the end of the financial year means preparing your business for the new financial year as well. Now is the time to make forecasts and projections for the coming months. Keep in close communication with your accounting team to see if they have any insights or advice to improve your business processes in the future. Analyzing your annual data for trends and patterns will set you on a solid path for growth and profitability in the future.
Look Forward To The Future With Confidence
To ensure that you are ready for the end of the financial year, it’s important to keep accurate records and be diligent with your filing throughout the year. Whether your financial year has been profitable or not, with the right preparation and approach, you can help to propel your business to a more positive position to start with a clean slate in the coming year.