11th June, 2020
With COVID-19 transforming the economic landscape, businesses are still picking up the pieces and preparing for the future as best they can. Here’s how to get sorted ahead of EOFY.
Due to these unusual conditions, it’s fair to say that the end of financial year has crept up on many business owners, adding even more stress to a difficult situation.
Thankfully, working from home won’t impair your ability to prepare for End of Financial Year (EOFY) – even with remote work setups, there are a few great last-minute tips that can help make this busy period much simpler.
Whether it’s better utilisation of technology, exploring supplier relations, or taking advantage of quiet time, read on to learn a few great tips to help you stay on top of the EOFY from the comfort of your own home.
The Australian Government has made some tough stimulus-related decisions during this crisis, but in the rush to make these available, many business owners have been left struggling to make sense of the masses of information.
When it comes to stimulus entitlements, businesses are misinterpreting what they’re entitled to and the appropriate amounts, and one of the prime examples of this is the JobKeeper payment.
Businesses are confused about how JobKeeper applies to not only their staff, but their business as a whole and this confusion has trickled into tax time preparation.
If you’re not sure what eligible employees on JobKeeper are entitled to, keep in mind the following:
With ample time available at the moment, businesses should be taking the time to ensure that super is still being paid for employees on JobKeeper and that they are still working the required hours each week.
Although businesses have been forced to rely on work from home setups, these shouldn’t be considered an obstacle. In fact, there is an impressive amount you can achieve remotely with a computer and internet connection.
While there is undoubtedly an excellent variety of software available to businesses, one of the best ways you can simplify EOFY preparation is with integrated Business Management software.
For instance, Single Touch Payroll is a critical element for being able to apply for and manage JobKeeper payments, and MYOB’s Business Management software streamlines the entire process for businesses.
Even if you’re a larger business managing a remote accounting team, paperless accounting affords them the opportunity to unify and work more efficiently together despite working remotely.
With access to accounting software, now is the time to ensure that all expenses are paid by June 30. If you’re wanting to stay on top of cash flow, it would be wise to kickstart super contributions and pre-payment of other items while you know you have the time up your sleeve.
Managing time is critical to creating efficient business processes. The availability of time keeping software to keep track of work being done by remote teams can help to maintain productivity outside of the office space.
Providers such as MinuteDock can give businesses simple and efficient time keeping while providing powerful data reporting to help improve time management and efficiency. Knowing in detail how you are spending time will let you manage both yours and your clients time better.
EOFY isn’t just about working your books and lodging tax, it’s also a great time to go shopping, and this is especially true for businesses.
Suppliers offload old stock for great prices around this time, making for excellent opportunities to find great deals on a wide range of invaluable items. These might include:
If you’ve got your eye on something, approaching salespeople with looming sales targets will help you find you a lot more wiggle room for your dollar than you’d usually expect.
It’s also possible for you to claim deductions if certain expenses, such as professional subscriptions and bills, are prepaid for 12 months or less, making for another great reason to spend now to save later.
If you have extra time on your hands, it’s also worth learning more about what immediate write-off of assets your business might be eligible for – what you discover might surprise you.
With the above in mind, it’s still important to remember that assets must be installed and ready for use by 30 June 2020. Tax cannot be deducted if delivery or payment ticks over into the new financial year, so tardiness can come at a cost.
With EOFY around the corner, it’s the perfect time to update your important work-related data.
Temporary closures and quieter business hours are not uncommon at the moment, but slow periods provide the unique opportunity to catch up on a lot of admin work – particularly for businesses ordinarily under the pump.
What you will need to invest time in will depend on your business, but catching up might involve any of the following:
If you commit the resources, developing a better understanding of your business can provide more than simplified EOFY prep – insight into your business affords you the chance to develop strategies to better predict and manage future sales for your business to help you more easily manage the unpredictable coming months.
This quiet period is also a great time to take a moment and check on yourself.
Financial adversity and a variety of unexpected challenges have made this time difficult for employees and employers alike, and mental health has been one of the first casualties.
It’s not difficult to improve your mental health, either – simple things like networking with like-minded business owners and mindfulness practices can give you a chance to breathe again.
Now’s not the time to hesitate or cut corners. With EOFY just around the corner, getting on top of your business’s tax planning and systems now will put you in a better position to succeed in the year ahead.
The information in this article is general in nature and not intended to be taken as financial advice. MYOB recommends consulting with an accredited tax agent or other relevant business advisor before finalising your EOFY plans. You can look for an advisor near you here.