EOFY Newsletter 21/22

Hey there smart people,

Well, here we are working our way towards the end of another financial year. Fair to say it hasn’t been the easiest of years most recently, but we are here to help ease the burden when it comes to keeping your books. This special edition newsletter will walk you through some of the key aspects of this time of year to keep top of mind and make the run-up to EOFY 21/22 as easy as it can be so you can concentrate on continuing to be the smart people in your businesses.

Before we launch in, just a little moment to say thanks for being on board! We are so proud of the team of clients we get to look after and we don’t just call you smart people by logo, we know we are privileged to work with such an inspiring group of clever business owners, all dedicated to your own success and contributing to our wonderful community of clients.

May the Deductions Be With You

May is typically the time to do some tax planning with your accountant. It’s also a smart business move to pay all super owing before June 30. Why? Because super is not tax deductible until it is paid. Paying all outstanding super before June 30 will bring the deductions into the current year and keep things ticking over smoothly when it comes to that all-important tick over at EOFY.

Things you don’t need to worry about and we will have covered for you include:

• We will ensure GST is reconciled
• Your data will be up to date
• STP finalisations will be done

Reassess Your Cash Position

We promised we had plenty of smart tips for our smart people at this important point of the financial year cycle and here is another one. Starting the year with a healthy cash position is crucial.

Ensure you review your cash management processes and consider the most appropriate funding solutions. There are a number of cash flow finance tools to help you better manage cash flow and funding.

Invoice finance is gaining in popularity as it provides advances of up to 95% against receivables without needing real estate security, and is scalable in line with the sales growth of the company.

Establish Financial Performance Goals

While it can seem like a run (or marathon?) to the EOFY and the to-do list explodes, another smart business tip is to take some time out to reflect. Make yourself a coffee (or a tea like us here as BKSP), sit down with a quiet few moments and reflect on these questions:

• Did you set yourself targets for the year?
• Were you able to hit your objectives this year?
• If so, what contributed to this success?
• If not, what barriers were in the way?
• What targets to do you want to achieve by the end of next financial year?

We find that if you create achievable targets, it can help keep you focused and on track. If this feels a bit overwhelming, we are here to help, reach out and let us assist you with this.

Set a Cash Flow Projection

While you are taking the time to reflect and use that valuable knowledge to build your business, it is a great move to plan your cash flow in advance. No, not by reading the tea leaves, that just means its time to pour another cup and continue that all-important reflect-and-plan mindset. You have to be alert of any possible cash flow deficits so that you will be able to pay your employees and suppliers. We are all about reflecting and forecasting to avoid any nasty surprises.

On a similar note, if you’re sending out invoices to clients, make sure to find out which clients are failing to pay their bills on time. Keep track of dates when invoices are due, together with other important dates that are related to your cash flow. Xero and MYOB have reports that clearly show these to make your life easy. If you need some help with cash flow projections give us a buzz or have a look at this link.

Thanks for including us on your exciting business journey, and don’t hesitate to get in touch if you need help in any bookkeeping aspect,

– Cristie and the team.