As the end of financial year approaches some of us in business are dreading the extra work load, while others whom are not in business are looking forward to those Christmas in July celebrations.
For me the end of financial year is an exciting time – it’s like a midyear New Year. It gives us a chance for reflection and to re-evaluate the direction we’re heading, both on a personal and business level.
For our business we look at the systems we currently have in place – are they still working or do then need replacement or improvement? We look at what business purchases (i.e. new machinery and / or tools) were made in the last financial year and we make a list of purchases we’ll make in the upcoming financial year. This gives us clear direction and we can refer back to this list at any time. Direction is important, especially in business. Most importantly, we look at the profits we made and how these funds were distributed. We also discuss how the profits will be distributed for the next financial year.
These few things are essential for business and I strongly urge you to add these to your list of ‘Things to Do’ at the end of the financial year.
Another important point for everyone at this time of year is of course that three (3) letter word…yep, you guessed it…T.A.X! Everyone has paid tax at some point in their lives – some more than others. There are several legal ways to minimise your tax and this website has some great publications on this very topic.
It is also important to have a good accountant – an accountant that understands you and your business. You may have heard that it is essential to be “Team Fit” which means to have a good team of people around you that are professionals in their field. Your accountant must be a key player in your team.
I’ve heard horror stories of people (including those in business) digging through shoe boxes full of receipts at the end of the financial year searching for expenses to claim. If you are one of these people then go to the stationery shop right now and buy yourself a ring binder and a hole puncher. This will save you money and most importantly TIME!
Our accountant has told us that I have saved us literally tens of thousands of dollars in tax by simply having my bookwork in impeccable order. Book keeping and up to date paperwork is the back bone of your business whether you want it to be or not.
Have a “Happy End of Financial Year” and use this time as a turning point, time for a change for the better. Remember, whatever is measured will always grow – it’s just a law of nature. You may be pleasantly surprised at the results. I look forward to hearing about any changes you make.
Have a great day!
Cheers
Katie
