As we approach the end of the financial year on June 30, 2024, it’s important for business owners to start preparing now to ensure a smooth transition and to maximise potential tax benefits. May is the perfect time to review your financials, plan your strategies, and take action. Here at The Small Business Lounge, we’ve compiled a checklist of essential tips to help your business end the year strong and start the new financial year on the right foot.
1. Review Your Financial Statements
Take a close look at your profit and loss statements, balance sheets, and cash flow statements. Ensure that all transactions are accurately recorded and that you understand your business’s financial position. This is the time to identify any discrepancies and make adjustments.
2. Consult Your Accountant
Meeting with your accountant in May can be a game-changer. Use this opportunity to discuss tax-saving strategies, compliance issues, and financial planning for the next year. Your accountant can help you optimise your tax returns and advise on any new tax laws that might affect your business.
3. Manage Your Inventory
Evaluate your current inventory levels. If you have excess stock, consider clearance sales or promotions to free up cash flow. Conversely, it’s also a good time to order stock if you anticipate price increases or shortages in the new financial year.
4. Review Your Business Goals
Reflect on the goals you set at the beginning of the year. Assess your progress and set new objectives for the upcoming year. This not only helps in strategic planning but also aligns your team with the business’s vision and ensures everyone is working towards common targets.
5. Update Your Budgets
Based on your financial review and goal assessment, update your budgets for the new financial year. Accurate budgeting helps in better financial management and ensures that you allocate resources to priority areas.
6. Check Your Payroll
Ensure all employee records are up-to-date and that payroll systems reflect recent changes, if any. This includes terminations, hires, raises, and adjustments in hours worked. Also, confirm that your superannuation contributions are current and comply with legal requirements.
7. Digitise and Organise Financial Records
If you haven’t already, start digitising your receipts and financial documents. This not only reduces physical storage needs but also simplifies access to records and enhances security. Make sure all important documents are backed up and securely stored.
8. Plan for Tax Payments
Prepare for tax payments by setting aside the necessary funds. It’s better to plan ahead than to find yourself short when taxes are due. This can also help you avoid penalties and interest for late payments.
9. Invest in Growth
If your financial position allows, consider making strategic investments before the year ends to claim deductions. This could be in the form of technology upgrades, staff training, or purchasing new equipment.
10. Seek Advice on Succession Planning
If you’re thinking about transitioning out of your business or handing it over to a successor, start planning now. Professional advice can help you make informed decisions and plan a smooth transition.
By taking these steps in May, you’ll not only prepare your business for the end of the financial year but also position it for success in the future. Remember, proactive planning is key to managing your business finances effectively. For personalised advice and support, reach out to us at The Small Business Lounge — we’re here to help you every step of the way!
