5 things to remember ahead of the End of the Financial Year
Tax time is nearly upon us and while employees hang out for their tax return, small businesses have a few more obligations at this time of year.
To get you and your business ready for the tax man, here’s a quick checklist to cover this financial year and get you ready for the next!
1. Get everything in order
It’s an obvious thing to say, but you should have definitely started this by now.
It doesn’t matter if you have a team in the Accounts section, a bookkeeper, or on the kitchen table at night - make sure that your collect all your receipts in a shoebox or scan them directly into Xero, so it's as tidy as possible before presenting them at tax time.
2. Review your business plan
Hopefully, it's only twelve months since you last gave your business plan an overhaul. If not, then don’t let it go any longer.
You might be surprised by how much has changed in a year. Are there new competitors in the market? Does the business have the right people in the right places? Where does the business currently stand compared to previous projections?
Take time to go through your business plan (and any others such as marketing plans) and get everything set up for the twelve months ahead. You might be surprised by how much it helps to clarify your thinking.
3. Know your business structure
As your business grows and changes it becomes subject to new tax restrictions and guidelines. If this sounds like your business, it might be worth taking a look at the ATO business structure guidelines before the EOFY comes around! Click here for more info.
4. Back-up everything
For many, cloud computing is the essential way to ensure quick access to business resources at any time. But, you should never place absolute faith in these services… it pays to buy yourself a portable hard drive and back up everything you have right now.
This should be done on a daily basis, but if that is too arduous, set a reminder to do it at the end of every month, or before everyone heads home on a Friday. It’s the cheapest insurance you can buy because once it’s gone ... it's GONE!
5. Review your insurance
This is another one that can easily catch you out. Sifting through insurance arrangements is the kind of job that is easily put off. However, much like backing up your business records, there can be significant impacts if the very worst manages to happen.
Not only should you be checking if your current insurance arrangements match the needs of the business, but you should shop around to see if there is a better service from other companies.
Depending on the size of your business, a few hours of research can easily save you thousands of dollars. If you are a sole operator, the job should be reasonably quick and give you the peace of mind you need when everything is on the line.
Happy New Year!