June 30 always seems to sneak up on us doesn’t it? There’s a lot involved in preparing your business documentation for the end of financial year.
The Australian Taxation Office will be expecting your return between July – October 31 2015, and employees will be expecting their payroll information ASAP. It’s not too late to get your business ready for tax time, even if you’ve done a poor job of record keeping so far.
1. MONITOR BANK TRANSACTIONS CLOSELY
According to a 2014 member survey from the Institute of Public Accountants and MYOB, 65% of business operators miscode bank statements. If most of your entries have already been made, it’s not too late to incorporate a software tool to help you catch errors. Accounting software should have built in controls to ensure that data is accounted for correctly, within an easy-to-use interface.
2. STAY ORGANISED AS YOU GO
According to the same research, it is estimated that 58% of business managers fail to keep up with their accounting and business statements on a regular basis throughout the year. One of the main reasons business people run into trouble is the fact that they are disorganised or simply don’t know where important records are.
This is where choosing the right business management and accounting software can really make a difference. Intuitive and user-friendly software (like MYOB Exo!), which can integrate the accounting function with other business management functions (like sales, stock, point-of-sale, payroll, field management etc.) means less work for you as these functions will communicate with one another and keep your accounts up-to-date.
3. EVALUATE GST LIABILITY
You may need to change your GST net liability for a reporting period. Business owners can increase or decrease adjustments, depending on their circumstances. MYOB Exo can help you evaluate your situation and ensure compliance.
4. PAY ATTENTION TO SUPERANNUATION
If you have to make superannuation payments for your staff, paying them in June will ensure that you can deduct them in this fiscal year. An advanced accounting software program can help you avoid exceeding your personal contribution caps.
5. RESPOND TO REQUEST FOR ADDITIONAL INFORMATION AS QUICKLY AS POSSIBLE
Around 49% of business owners fail to report or update information when it is asked for. Take care of any “loose ends” and tie things up as fast as you can.
6. CONSULT A PROFESSIONAL
If your paperwork is not quite ready to file, it’s still a wise decision to sit down with an accountant who can assist you with planning and strategy. If your records for this year are not up to date, business data from prior years can give your accounting professional a glimpse into your finances. Accounting software ensures that prior year records and returns are easily accessible at tax time.
7. GET THE BIG PICTURE
Don’t look at June 30th as tax time, look at it as a time to analyse your business, and your financial future. Enterprise accounting software will not only help you with last minute tax details, but it will give you a glimpse into other important details, such as insurance, investments, and retirement planning.
8. LEARN HOW YOUR ACCOUNTING SOFTWARE CAN MAKE THINGS EASIER
Smart business software keeps up with facts and figures that you might forget otherwise. No one can remember all of the facts necessary to keep up with the intricate accounting details of a busy office. However, 46% of business managers are not able to use the software they choose with a high level of functionality. This can defeat the purpose of having tax or accounting software in the first place!
At Horizon Business Systems we have MYOB EXO & MYOB Advanced Consultants, who can work closely with your team to deliver customised training and support.
Automated and fully supported ERP systems – such as MYOB Exo and MYOB Advanced – offer reporting and compliance functionality for business owners and managers to confidently make decisions and forecasts to ensure successful financial management and the ability to seize market opportunities.
Horizon Business Systems offers the perfect combination of expertise and service to ensure that your business is ready to handle tax season, every year!
As we begin a new year, it’s time for cleaning out the old, making new resolutions, and getting organised. It’s the middle of the fiscal year, and you have six months until finances need to be in order for tax time and EOFY goals need to be met – so now is the perfect time to make sure that you are on track.
PERFORM A MID-YEAR SALES & FINANCE CHECK-UP
When it comes to mid-year check-ups, your accounting and business software (like the MYOB Exo Enterprise Accounting Software) can give you a snapshot of your current situation, help you evaluate where you stand and make a plan for the second half of the year in preparation to meet your EOFY targets.
Review your actual sales figures over the last six months and compare these to the forecasts you made at the beginning of the year. Are you on-target? Do you need to take action to boost sales over the coming months to meet your EOFY goals? This task can help you figure out your priorities for the coming months and even help you to make decisions about marketing strategies and budgets for the rest of the financial year to boost sales.
Your accounting software can also help you in tracking deductions, allowing you to take action to adjust your deductions and ensure your business is on track with your financial plan.
REVIEW YOUR ESTIMATED TAX PAYMENTS
It is so important for small businesses to make sure that they are paying estimated taxes correctly. Underpayment can lead to direct penalties, but overpayment can hurt your business financially by shrinking your cash flow during the year, leaving you less to work with.
Estimated taxes are only estimations, usually based on your tax payments from the previous year. However, mid-year is a great time to recalculate your taxes, especially when you have exact numbers for half of the year already. Your estimated tax payments for the second half of the fiscal year can be more accurate with a re-evaluation of your estimated payment amounts.
REVIEW YOUR FILING AND DOCUMENTATION SYSTEM
Keeping your business records and important documents organised can make a huge difference when tax time does roll around. One of the most stressful parts of filing taxes can be going through receipts, documents and expenses, so make sure that the filing system you currently use has been working for the first six months of the fiscal year. Consider making a backup copy of your records thus far, and check in with employees to ensure that they are keeping accurate and organised records.
This way, when the fiscal year ends, you will be able to understand and evaluate your financial year, file your taxes accurately, and avoid an audit!
Talk to us today to find out how a MYOB Exo solution can help your business to improve systems and meet targets. Call us on (08) 9328 1678 or fill out an online enquiry form and we’ll get in touch!
Managing cash flow and adequate financial planning are important in any business, and every business has seasonal peaks and low periods. Seasonal businesses that do most of their business during one season and may even close at another time of year need to take extra care when creating a reliable financial plan to help carry them through the low season. Christmas is a slow period for many businesses (aside from retail of course!) as companies close for the holidays and customers take to their homes to spend time with family – so what better time of your to look at some useful cash flow tips?
There are various ways to create a financial plan, and depending on your business, whether your business operates for 12 months every year or it is closed for part of the year, your financial plan should be customised to your business. Consider the following tips when creating your business’ financial plan.
Running a seasonal business means that you already know that some of the time, you will have more money coming in, while other times there will be less coming in. Budget yourself, and always plan for the future by looking at either your own financial history, or research from other companies. Understand your fixed and variable costs, and know when you can cut back on variable costs. Make a potential forecast, budget your spending accordingly, and save enough to cover your expenses at the low points.
If you know that you have a low season, you will have both less work to do, and less money coming in. Instead of taking a vacation or twiddling your thumbs waiting for business to pick up, take the time to strengthen your business. Work on your marketing plan, build a financial plan, try new products or services that might help your business bring money in during the low season, or take classes to increase your know-how.
No matter how much planning you do, there is always the chance that you may need to take out a loan. Make sure that you pay your bills on time, keep open lines of credit, and do not build up a large amount of debt, especially during your high season.
If you are trying to save money on purchases, find one company with whom you work well. Pay your bills on time, and ask about discounts for buying in bulk. You can also negotiate the terms of your payments with suppliers. Rather than paying a lump sum, try arranging a payment plan with a supplier.
Make sure that your invoicing process includes a partial payment up front, or that you don’t send out products until you have received payments. Minimise the risk of giving out free products or services to your business by planning ahead.
Similar to building relationships with suppliers, if you have loyal customers, offer rewards for things like paying bills on time or early, loyal purchases, or buying in bulk. Maintaining your customers is just as important to your business finances as is saving money on your expenses.
If financial planning is not your strong point, it is important to hire someone who excels at it, outsource your financial planning, or find a DIY financial planning software that can simplify the process for you. Software like the Exo Finance – Core Module allows you to run your business’ finances, accounting, stocks, analytics and performance, and more, even remotely.
If it comes down to it, and a loan seems like the best option to cover low periods of cash flow, discuss your options with a financial planner, and know what your loan is for. Make sure your loan fits your financial plan, you will be able to pay it off in the high season, and that you stick to a budget or use financial software to help you control spending, collect balances due, and maintain relationships with both clients and suppliers.
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