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How Aussie business owners are welcoming in the new financial year

How Aussie business owners are welcoming in the new financial year

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Managing a small business is no easy feat, especially in Australia's current economic climate. As the past few years of COVID-19 lockdowns have actually seen a flurry of fresh start-up companies and budding businesses enter our national economic landscape, this tax time was in itself, a milestone for many first-time business owners.

With another end of financial year period done and dusted, both beginner and seasoned small business owners across Australia are likely settling into the new year by taking stock of what went well, and what could do with a little reorganisation and reform.

Here are just a few ways small business owners can spend the weeks and months proceeding June 30 to ensure that their business tax processes only grow better and more streamlined with every passing year.

Filing their business tax returns nice and early

The best way of ensuring that you're ready for tax time as a business owner is simply by disciplining yourself to file your business tax return as early as possible. This method is also superb for ensuring that you don't forget to file any deductions like tax deductible donations, depreciation costs, or any other deductible business expenses that require you to keep and organise receipts.

If you're uncertain as to whether any of your business expenses are actually tax deductible for your industry, then be sure to address these concerns nice and early with your business accountant or in-house accounting team.

Doing so will likely go a long way with regards to developing and optimising your business tax processes so that future tax returns will be less scattered and increasingly prompt. Alongside this, understanding what you can and can't claim as early as possible will likely also save a wealth of time and resources by eliminating the need for business owners and their accounting team to sort through a year's worth of receipts and expenses.

When you think about it, it is actually in your best interests as an employer to get your business tax return out of the way as early as possible, simply because it'll free up your mental space and energy to be allocated towards more pressing concerns.

Getting business tax returns completed before the end of July will allow Aussie business owners to get a head start on the next financial year. This can be particularly beneficial for small business owners, as they can use the extra time saved to focus on their business growth and development strategies.

Assessing employee remuneration and bonus structures

Speaking of growth strategies, one upside to thriving as a small business is being able to provide your staff with additional incentives to perform at their best. Rewarding exceptional employees in the form of professional advancement opportunities, improved remuneration, and perhaps even bonus or commission structures, can make your organisation a far more positive place to work.

Small business owners are urged to spend some time after the end of the financial year to map out just what kind of remuneration (i.e. raises or bonuses) and advancement opportunities they can provide to their staff over the next financial year.

Having a clear understanding of your financial limitations with regards to employee remuneration structures will minimise risks of business owners overextending their budget for labour costs.

The beginning of a new financial year is also a fantastic point in time for this kind of financial strategising to take place, as business owners should already possess a clear idea of their company finances and growth estimates for the year ahead.

Upgrading office technology and equipment

Of course, if you did have some budget to spare in the lead-up to June 30, chances are you may have already gotten started on upgrading your office's technology and equipment. If you haven't been able to make these purchases, however, then it's well worth starting this next financial year off on a good foot by investing in your own organisational tools, technology, and equipment.

Although all of the purchases you make are likely to be tax deductible, it's still worth keeping an eye out for special deals at local retailers so that you can minimise costs straight out of the gate at the beginning of this new financial year. Having a shop around at your local retailers may also help you gain a stronger understanding of what technology and equipment you'll need to upgrade in order to ensure that you and your employees are all in the strongest position to work productively over this coming financial year.

Revamping office organisation and storage

Last but not least, an office is only as productive as it is organised, which is likely a correlation that many business owners are only prompted to make around tax time. The fact of the matter is that staying on top of your office storage and organisation is generally likely to play a major role in how quickly you can finalise your business tax return. How so?

Maintaining a dedication to keeping your business expenses and all other relevant documentation well organised will remove a lot of the more arduous administrative aspects of navigating tax time. This is precisely why it's in the best interests of small business owners to spend some of their downtime throughout the financial year revisiting and revamping their office organisation and storage processes.

For instance, it's a good rule of thumb to maintain files for each fiscal quarter, and then collating all of these individual files into a combined folder for that financial year. That way, you can ensure that all of your business expenses over one financial year can be found in the same place.

These folders can also be archived to help business owners maintain a full and unbroken record of all businesses expenses, transactions, and earnings from their first day of operations all the way through to the present.

Fine-tuning your company's organisation and storage doesn't just have to be limited to record collection, however. You may even decide to take some extra time following EOFY to reorganise your office in order to find your optimal workspace arrangement.

Small business owners should feel encouraged to invest in storage solutions like cabinetry, boxes, and other easily adaptable furniture storage to ensure that their workplace is better equipped to stay organised through all the ups and downs of this coming financial year.

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Although we have outlined a few fantastic ways to spend the first few weeks or months of the new financial year, filing your tax return should absolutely be completed before any of these other tasks should be considered.

The top priority for all Aussie business owners should be working through their tax time checklist and making sure that they can tidy up their records and responsibilities for the last financial year before they turn their focus on the one that lies ahead.