Countdown to tax time: 2 weeks from 30 June – start planning for 2018/2019

When preparing for tax time it’s easy to look at the year you’ve had, but fewer people look at the year to come.

The information provided here is of a general nature for Australians and should not be your only source of information.
Please consult an experienced and registered tax agent as each business’s circumstances vary.

READ: 7 weeks from 30 June — review your debtors

READ: 6 weeks from 30 June — review your creditors

READ: 5 weeks from 30 June — reconcile PAYG and super

READ: 4 weeks from 30 June — review income accounts

READ: 3 weeks from 30 June — review expense accounts

I encourage you to take some time and reflect on the year that was.

Write down a list of all the areas in your business that you had wins — celebrate these accomplishments and successes, give yourself and your team a pat on the back.

Also write down a list of all the areas that you had some losing moments — reflect on what have you learned from these experiences and consider what plans you have in place so these moments are minimised or don’t occur again in 2018/2019.

Remember the old saying: “Mistakes are not a problem. Not learning from them is!”

Use the above as a basis for your plans and goals for 2018/2019.

I would suggest that you prepare the following budgets:

• Prepare an expense budget
• Prepare a sales budget

You can easily prepare sales and expense budgets using online accounting software like MYOB Business.

See how much cash you have, your outstanding invoices and your tax liabilities in real time, so you have a clear picture of what needs your attention.

This will then assist you in the following areas of your business and will ensure success in 2018/2019

• Establish your breakeven sales level
• Establish if an adjustment is required to your prices
• Establish wages levels from 1 July

I recommend to my clients that they review their pricing and charge rates annually and where appropriate increase in line with the CPI. 1 July 2018 may be the perfect time for a change.

Some clients choose to absorb some of the CPI increases in a particular year and increase their prices & charge rates every second year. There are many other factors that will often dictate if your business is able to increase prices without affecting sales levels.

I strongly advocate that you do not just follow what others are doing if you feel it is not sustainable. Value yourself and the services you provide or the goods you sell. If you would like assistance with pricing or charge out rates, contact your accountant.

“Price is what you pay. Value is what you get”. – Warren Buffett

Getting personal

I believe that you have to have balance in your life so it is so important to reflect not only on your business life but also on your personal life.

What changes can you make in 2018/2019 that will give your more balance? In many cases, we as business owners are often our own worst enemy when it comes to time management, delegation of work to others and looking after our own well being.

What you need to do is:

• Make a conscious decision on what you want from your business and your personal life
• Schedule time in your diary that you are unavailable for appointments or to do work (this might be monthly for review of your financials, a certain day of the week to prepare quotes/invoices that you always leave to the last minute and take home at night or on the weekends, a regular game of golf which may also involve networking and promoting your business)
• Delegate work to staff where appropriate
• Set boundaries & stick to them!

And if you’re still using spreadsheets to manage your books, now’s a good time to move over to online accounting software.

MYOB Business is easy online accounting software that has everything you need to take care of business, including payroll.

The information provided here is of a general nature for Australians and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’s circumstance will vary.