It’s that time of year again… end of financial year is only weeks away and rather than hit the panic button, there are actions you can take right now that will ensure you finish on a high note and set yourself up for success for next year.
I’ve personally implemented these practices over the years and it’s helped me not only minimise my tax obligations but also maintain a financially healthy business.
I want to be clear that I am not a financial advisor or tax accountant. For financial advice tailored to your business’s unique circumstances, I encourage you to consult with a certified practitioner. If you need assistance in finding the right expert, let me know and I’ll be happy to connect you with trusted professionals in my network.
Now, here are my top 5 tips for you:
Know your current financial position
Take a snapshot of the metrics that matter in your business. This should be a regular practice in your business – I do this at the end of every month. This snapshot will enable you to make informed decisions about the most impactful action to take now (and in the future).
Spend now – but only if it makes good business sense!
There’s no need to go crazy but for many of us, it makes good business sense to have a bit of a spend-up before EOFY. Consider ongoing expenses in your business that you may pay periodically like subscriptions or other services you have on retainer. You may get a discount for an annual upfront payment and then be able to claim it as a business expense immediately. There are the big ticket items like equipment, coaching, web design, etc, that you may consider paying for now rather than wait another 12 months to be able to claim back.
Look for a cash injection
Revenue is vanity, profit is sanity but cash is king (or queen in our businesses!). Now is a great time to encourage clients to pre-pay for services. You consider offering incentives for them to pay upfront before EOFY. You should also make time to chase up all outstanding invoices.
Review your pricing & service offerings
The cost of doing business (and life!) has increased for us all so this is a good point in time to look at your pricing. This should not just be a review of $$$ but also a look at how you are delivering your services. Is there an opportunity to deliver in a more streamlined, efficient way to save you time and make more money? Could you consider packaging services? Or partnering with other service providers to give your clients an elevated offering?
Pricing conversations are not always comfortable but arbitrary dates in the calendar can make them a little more so. 1st July is probably the most used of those dates for businesses to raise their prices so don’t be scared 🙂
Take advantage of all the ways to minimise your tax liability
Working with a reputable tax accountant can help maximise deductions and minimise tax liabilities. I make sure I top up my superannuation because there are great tax advantages to this as a sole trader. I speak to way too many business owners who don’t pay themselves supa but are paying a tonne of money in tax. Just one of the many reasons why we need good financial advisors in our corner – most people don’t know what they don’t know.
I hope these tips help you to boost your business and make this your best End of Financial Year yet!
If you would like personalised support to get your business set up to kick off the next financial year strong, let’s do a Power Planning Session together! We will work together to create your tailored roadmap for the next 6 months (and beyond). I’ll work through your ideas and I’ll provide practical strategies to bring your plan to life. If you want to change the way you do business, email michelle@michellebroadbent.com.au today.
