For most business owners, there are some particular aspects of the business and the broader economic climate that you should consider on the lead up to end of financial year (EOFY). To ensure that you have a complete picture of where your business is and where it is going, you need to ensure that you are focusing your energy on the right areas of your operations. Armed with this information, you will be in a better position to make the right decisions to move your company forward in a positive and productive manner.
Let’s take a closer look at some of the key things you should be aware of and pay attention to so that you can be ready to start another profitable financial year.
Record Keeping/Spring Cleaning
Nearing the end of the financial year, it is important to make sure that all of your records are organised and squared away. Make sure that your financial paperwork is in order including your overall profit and loss statements and bank reconciliation forms. Take this opportunity to back up your important files, which should preferably be secured on the cloud to prevent loss of data following a potential disaster.
Prepare Your Tax Information
The end of the fiscal year is a great time to make sure that your tax information is in good order and ready for submission. Make sure that all of your obligations for employee income tax filing are met. Be sure to claim any and all tax deductions that may apply to your business. This is especially true for smaller businesses for which there might be special tax credits available.
It can be useful to make informed decisions about your expenses at this time of the year. For example, you may want to time your expenses to fall into the new fiscal year. Sales of your assets and payment of capital gains tax might not be good for your company at the moment. Waiting until the new fiscal year could save you money when tax season comes around. It is also good to be aware of any impending changes to the tax code that you should be aware of. If you have a small business, this might be of particular importance.
Reevaluate Your Marketing Plan
While you should always be monitoring and evaluating your overall marketing plan, the end of the financial year provides a good opportunity to look at the bigger picture. Take this time to reassert what the mission statement and overall goals of the company are. Gauge whether your brand’s message is making its mark in the way that you have planned. Make sure that your marketing and business strategies are working. If they are not, then reevaluate and make the changes you need to in order to succeed.
Write Off Bad Debts
At the end of the financial year, small businesses should write off any bad debts that have not been recovered over the past year. During this process, make sure to clearly indicate what the bad debts are and describe the efforts you have taken to collect them. It is critical that this debt was included in your company’s assessable income in order to be written off.
Have A Profitable Year For Your Business
The end of the financial year is a crucial time for business owners in making decisions for the future of the business. It’s important to check some of the things we have mentioned above off of your to-do list at the end of the financial year to ensure you can move forward with confidence. With some organisation and planning for the upcoming year, your business should continue to run smoothly and enjoy an even more profitable year in the coming year.