17th July, 2024
As the end of the financial year (EOFY) period starts to wind down and a new financial year gets underway, it’s natural for business owners and their teams to feel a little overwhelmed, especially if it’s your first year in business.
After all, it’s been an extremely busy, stressful time and you’re probably wondering how you can eliminate some of the frantic nature of EOFY when it rolls around again in 12 months’ time.
But fear not! With the right strategies in place, you can already start planning for the next EOFY with ease and confidence.
We break down why it’s never too early to start planning ahead and how you can make the next EOFY period much less taxing for you and your team, covering areas such as:
The secret to a stress-free EOFY lies in careful planning.
Start by reviewing your financial records and identifying any outstanding tasks that need to be completed before the deadline.
Create a comprehensive checklist and allocate responsibilities to your team members to ensure nothing falls through the cracks.
Jody Sitters, a registered BAS agent, and MYOB Community Relations Manager, advises that proper planning is needed to be on the front foot.
“Get your business data up to date well before the end of the year, which gives you the opportunity to plan with your advisor,” she says.
“You may want to maximise your deductions in that year if needed, push back on invoicing big jobs, or buy that new truck that you’ve been looking at.”
Similarly, Pamela Taylor, the Founder & CEO of Greenspace Bookkeeping, says one of the best ways to reduce stress at EOFY is to start preparing early.
“Begin reviewing your financial records early to identify any discrepancies or missing documents,” she says.
“By tackling this early you’ll avoid the frantic rush at the EOFY and will ensure everything’s in order by the deadline.”
Keeping your financial documents and records organised throughout the year is also essential for a smooth EOFY process.
It pays to invest in cloud-based software and digital filing systems to streamline document management and ensure easy access to important information when needed.
“A centralised digital filing system or document management software will help ensure all of your receipts, invoices, bank statements, and other financial records are neatly organised and accessible when required,” Pamela says.
The last thing you want is for you and your team to waste time looking for the right documents, so get organised early to make things easier for everyone.
One of the best ways to help keep your accounts in order is to use reliable accounting software like MYOB’s solutions.
“Whether you’re a sole trader looking for simple accounting software or a growing business in need of powerful management solutions, you can do it all in one place with MYOB,” Jody says.
With features such as automated data entry, real-time reporting, and tax calculation capabilities, accounting software can save you time and effort while ensuring accuracy and compliance with regulatory requirements.
Pamela notes how good software streamlines the EOFY process significantly.
“Most modern software packages have automation built into them that handles many tedious tasks such as data entry, bank reconciliation, report generation, receipt capturing, debtor follow-up, timekeeping for payroll, and more to save valuable time and reduce the risk of manual input errors,” she says.
“Plus, accounting software can allow you to attach copies or receipts and invoices to individual transactions.
“Cloud-based programs also allow for real-time collaboration between team members and your advisors, meaning that many hands make light work.”
Under no circumstances should you try to do it all yourself!
Start early by delegating tasks to your team members based on their skills and expertise to lighten your workload and ensure everything gets done ahead of time.
Effective delegation not only reduces stress but also fosters a sense of ownership and accountability among your team members.
“If stock counts need to be done, planning around dates and getting the team on board with what they need to do will help to get the job done quickly,” Jody says.
Plus, with all the early prep work you complete prior to the EOFY period, you should be able to get your accounts updated ASAP after 30 June and sent on to your accountant or other advisor.
“Doing this in such a timely manner will give you the peace of mind that the job is done and you and your team can relax,” Jody says.
“Your accountant can finalise your business outcomes, and you’ll have plenty of time to manage and plan for any tax that needs to be paid well before those pesky due dates.”
For less stress, don’t forget to also keep your team members informed and updated on any changes or developments related to the EOFY process.
Encourage open communication and provide support and guidance as needed.
“By fostering a collaborative and transparent environment, you can enhance productivity and ensure everyone is working towards the same goal of a successful EOFY outcome,” Pamela says.
Plus, Jody suggests, “You might want to structure regular meetings with your team in the lead-up to EOFY to manage timelines and discuss what needs to be completed.”
Seeking professional assistance from an accountant or bookkeeper can also be invaluable, and means communicating with these advisors regularly as needed.
Pamela says, “These professionals can ensure compliance with regulations and identify anything you may have overlooked. Outsourcing certain financial tasks to specialists can also alleviate the burden on your internal team.”
By following these key strategies, you’ll make the end of the financial year less of a pain and more of a breeze.
With careful planning, effective communication, not to mention a positive mindset, you can plan for the next EOFY with far less stress.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
MYOB is not a registered entity pursuant to the Tax Agent Services Act 2009 (TASA) and therefore cannot provide taxation advice to clients. If you have a query concerning taxation including filing your BAS return or annual tax statements then you should consult with your accountant or other registered tax adviser.