Each end of financial year (EOFY) is a busy time for businesses and accountants alike.
Apart from balancing books and lodging a tax return, astute business owners should use the time around 30 June to review performance and plan ahead for the new financial year.
Number crunching should no longer be the focus. Yes, it is a regulatory requirement but it’s just a case of hitting deadlines in the most effective and streamlined way.
Using the numbers is very much about making informed business decisions going forward.
Thanks to cloud accounting, business owners are more proficient in managing their finances in real time, which means they can use EOFY to get on the front foot with their accountants to understand what do to prior to lodging a tax return. The ATO has urged more and more businesses to ‘go cloud’ as part of their electronic document push so, if not now, then when?
While tax planning is an essential part of any accountant’s job, reviewing business data and critically analysing it to draw out insights and identify potential growth areas is hugely valuable.
Most small businesses try to do more with less these days, which is where accountants acting as strategic advisors can help address areas of development in the new financial year. Typically cash flow and profit improvement strategies are the first areas to warrant attention, often giving rise to bettering other aspects of a business.
For example, if you are the owners or parents in a family enterprise, succession often remains back of mind. However leaving a legacy for the next generation to “work it out” is not the answer. It’s as much about organising and planning your own future as it is about providing certainty and a future for your kids.
To conquer the complex issues around succession planning, you need accountants who are experienced in matters such as the transfer of managerial control, responsibilities and ownership of assets, selecting successors, timing, estate planning and wealth creation! It’s vast, but starts with a commonsense review of a business’ position at tax time to get planning properly underway.
Businesses of all sizes need experts to professionally work with them to ensure any planning is successful. If tax does matter to you, seek advice from accountants like OBT who are more than just tax preparers and take advantage of business improvement specialists who can assist your business whilst keeping your tax bill to a minimum.