01 May Top tips to end the financial year with a bang – have your cake and eat it too!
Now, let’s be frank. We aren’t Accountants or Financial Planners. The below is intended only to give you something to think about, it’s not advice and shouldn’t be construed as such. Please speak with your Professional Advisers to find out what will work for you and your business. That in mind, here’s our top tips to end the financial year with a bang and leave you prepared, ready and raring for an outstanding FY 2019/2020! Get excited!
1. Ask for help
Don’t be the smartest person in the room. Look to your network of friends, associates and professional advisers. What can you learn from others who are leaders in their fields? Do you have any insights you can share with them?
2. Understand the rules and regulations, and how you can make them work for you
A great example of this is the Governments Instant Asset Write-off.
Talk to your Accountant to find out what’s available to you and your business and whether your current strategy can take advantage of any Government incentives.
3. Line those ducks up
Take the time to organise your paperwork, make sure you have all receipts and can account for each expense and all lines of revenue. If you really want to make a difference for yourself next year, take the time to set up a process that allows you to manage your paperwork on auto-pilot. Talk to your advisers about a digital system that could save you from all those loose pieces of paper floating around in your centre console……you know what we’re talking about.
Also, be sure to separate your personal and business expenses to make tax time a quick, easy and painless process for both you and your Accountant.
4. Make a payment to your superannuation or pay down debt.
Have a few spare dollarydoo’s lying around? Put them to work.
5. Review your rates and terms
Are you getting the best deal on your debt? Now is a great opportunity to put the screws to your Bank for both your Business and Personal debt to get a better deal. If you need a hand with your home loan, our sister company Apis Financial is here to help.
6. Review your invoicing
Is it time to update your terms and conditions of sale? Maybe your pricing could do with a little refresh, or your terms amended to provide a stronger cash flow cycle for your business. Now’s the time.
7. Review systems and processes
EOFY is a great opportunity to look at what is and isn’t working within your business. Use trends and comparisons to see what *could* change, then work to test your hypothesis (alternatively, outsource the whole shebang to another member of your team who can objectively view a process with fresh eyes AND do the heavy lifting on this).
8. Boost your reserves
A little spare change in the kitty is a great idea. Boosting your cash reserves give you the freedom to take advantage of immediate opportunities, think a property purchase or special pricing on stock. Squirrel away what you can for that rainy-day scenario.
9. Plan the sale of your CGT investments
Speak with your adviser to discuss the sale of any CGT incurring expenses.
Plan to time your sale according to your tax requirements.
10. Look to pre-pay expenses
Can you take advantage of any early payment discounts that time well with claiming an immediate deduction?
11. Look at your cash-flow requirements
Now is the perfect time to work out what it is you need for the next 3-4 months. Adequate cash-flow will assist you in working through any election related trading slumps as well as taking advantage of any EOFY opportunities that might pop up. If you need a boost to your cash-flow, let us know, we are here to help.
12. Check your pay run date
Does your EOFY pay run fall on this side of the financial year or next? A slight change in timing could be to your benefit. Check with your advisers to see what might be possible.
13. Just a friendly reminder, Payment Summaries are due by 14th July 2019.
You’re welcome :)
14. Are you claiming everything you are entitled to?
This one comes down to good management of paperwork and having clear conversations with your Accountant.
Having all those duck’s lined up so you know what can, can’t or might be able to claim. Then it’s just a matter of speaking with your Accountant to confirm.
Plus, you have the added benefit of knowing for next year, further helping to streamline your paperwork process.
15. Plan any stock purchases you need
Speak with your accountant about when to make significant purchases. Is June or July going to work better for your overall position? Can you work with your supplier to make a purchase at a time that is mutually agreeable for both of you from a tax perspective? Perhaps a discount could be negotiated?
Most importantly, take action now, it’s May 1st, EOFY isn’t too far off and we want to see you smash it!
Give your accountant and financial advisor a call now to ensure you are on the front foot.