New Year is a celebration across many cultures. We often carve out space to reflect even if it’s a busy time. And some of us make New Year’s resolutions as a way of committing to changes we think will improve our lives.
If you’re an Australian business owner, you get a second chance at ‘New Year’ every time June comes around. In amongst the financial admin and bookkeeping is the opportunity to reflect on your personal aspirations and business goals. It’s also a great time to grab a bargain in EOFY sales. Or perhaps you could leverage this time to launch a new offer to help boost your end of year revenue.
Below we explore some ideas to put on your small business end of financial year checklist and help you start your new financial year with a bang.
Improving revenue and controlling costs are top concerns for Australia’s small and medium businesses. When managing cash flow is an everyday challenge it can be hard to consider the big picture. For business owners, EOFY is a critical time for financial reporting and meeting tax obligations. The information you pull together can give you empowering insights into the overall financial performance of your business.
Refer to your business aspirations and look for opportunities to set measurable targets that will help you track your progress. If things aren’t where you’d like them to be, this is the perfect opportunity to take a step back and identify areas for improvement.
Below are some questions to ask yourself.
Give your accountant or financial advisor a clear view of your aspirations and goals. This means that when end of financial year hits, they can help plan for the new financial year as well as managing your tax obligations.
You can refer to this helpful end of financial year checklist to organise yourself ahead of time. That way you won’t lose the opportunity and can think bigger than your Business activity statements (BAS) and bookkeeping.
Lots of businesses offer special deals as part of end of financial year sales (EOFYS). So, it can be a great time to benefit from special offers on business purchases.
With a clear view of your financial position and goals for the new year, you can explore EOFYS deals that will help your business move forward. Below we list some things to consider.
Explore offers on business products and services to help ensure your business technology is well set up to meet your future needs.
End of financial year or EOFY sales generally end on or before the last day of the financial year – 30th June. When do they start? This depends on the retailer in questions. Some retailers may start promoting offers in the weeks leading up to EOFY while others might adopt a flash sale approach with a limited time window. If you identify what you might want to purchase in the end of financial year sales early, you’ll be in a better position to target retailers who could offer you a great deal.
Make sure you’re clear on what can be claimed as legitimate business expenses and business tax deductions by reviewing guidelines from the Australian Tax Office (ATO). It’s important to seek professional financial advice if you’re not sure.
EOFY sales are often designed to maximise revenue on the books within the financial year. And your customers may also be on the lookout for great deals towards the end of the financial year.
If your customers are other businesses, think about how you can create value for them and work within their annual budgeting cycle. Towards the end of the financial year, they may be revisiting their budget and considering EOFY spend versus new financial year budgets.
Even consumers are tuned in to a good EOFY deal. You might consider how to package and promote stock you’d like to clear out to start the new year afresh. Or if you offer services, you could create a compelling package to maximise revenue before the financial year ends. You might even offer products or services some of your customers could claim as tax-deductions in the context of their own work.
In Australia the financial year runs from 1st July each year to 30th June the following year. But if you have customers in other countries, it’s important to know that the end of financial year varies country by country. Make sure you check on the specific dates for financial or fiscal year in each country if you’re considering EOFY offers to customers outside of Australia.
With a bit of planning, you can use EOFY as a catalyst to renew your aspirations and reset your business goals. Whether it’s shopping in the EOFY sales or putting on your own promotions, make sure you maximise this important time of year for your business.
Disclaimer: Information provided in this article is general in nature and does not constitute financial advice.
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