How to get ahead next financial year

Joel Svensson

With a brand new federal budget in place and the end of the 2015-16 financial year looming, now is the time to get on top of your finances and put your best foot forward in 2016-17.

To find out how, ShortPress spoke to Ashley Quinton, director at Prosperity Advisers Group, on navigating the transition to a new financial year.

“It’s an opportunity to look at your business rather than getting caught in the business.”

Do a financial spring-clean

According to Quinton, the lead up to the EOFY is the perfect time to refresh your finance systems.

“Before the end of the year,” he says, “It’s a good idea to go through the financial projections for the business, look at net-profit position, and also review the risks – ensuring that the employees are up-to-date and paid, ensuring that [SME owners] understand their payroll obligations, and other things like superannuation, for example.

“It’s an opportunity to look at your business rather than getting caught in the business.”

Mind the budget

The 2016 federal budget contained a parade of boons for small business.

“The main one is the extension of the twenty-thousand dollar immediate deduction for asset purchases,” says Quinton. “That will help small businesses if they’re looking at buying further assets next year as well.

“The government’s also going to aim for simplified GST reporting from the 1st of July 2017 which will help small business in terms of preparing BASS, and they’re going to trial that from July this year and we’re hoping that will simplify the process, because it does take a lot of time for small business to prepare those BASS’s.”

The budget also introduced a restructuring of taxes for SMEs with relatively high turnover. “The government will increase the threshold from two-million up to ten-million, so small business will have access to the lower corporate tax rate which will be from the 1st of July, dropping to 27.5% and then reducing over ten years to 25%.”

“It’s about strategic, big-picture planning.”

Think strategically

It’s so easy to get caught up in the details, but Quinto urges us to take a larger view. “Always look at the big picture of the business,” he says.

“Even if you just sit down every three months, and review how the business has gone, where you want it to be in the next three months, and how you’re going to get there. You need appropriate planning to help ensure that you meet your goals and objectives for the business and improve your performance overall.

“It’s about strategic, big-picture planning.”

Joel Svensson

Joel Svensson is a Melbourne-based freelance writer specialising in politics and business.

Image: Paul, Flickr Creative Commons License