Three tips to get ahead in business during EOFY

For businesses, the end of financial year (EOFY) can seem a little like high school exams: you’ve had all year to prepare, and yet as the deadline approaches, you realise how much more work there is to do. Tax obligations, deductions, superannuation payments and sorting through records can be enough to stress out even the best of us, but it doesn’t have to be difficult. In fact, with a little planning, the end of financial year period can provide a last minute boost to many businesses. With that in mind, let’s take a look at three key ways to prepare for June 30.

Keep your records organised

It’s always worth repeating: make things easy on yourself with good record keeping. When it comes to tax time, it’s going to be a lot easier to figure out your potential for savings (such as deductions) if you’ve got easy access to the relevant documentation. Most small and medium businesses should prepare (at least) the following records:

• Receipts (both for purchases and sales)
• Business Activity Statements (BAS)
• Employee superannuation
• GST

Small businesses and sole traders will often use spreadsheets and basic accounting software to keep records, which can be effective. However, if you plan on growing your business, consider cloud-based software. Enterprise resource planning (ERP) software can help keep track of financial records in real time, are accessible anywhere, and can draw on data from other areas of the business such as stock levels and customer data. If you’re able to effectively keep on top of your documentation, it’s going to be much easier to get the best result at tax time.

EOFY promos

There’s really two sides to the EOFY sales coin: those selling, and those buying. And for businesses, it can be beneficial to get a mix of both.

We all know that EOFY sales represent great value for the consumer, but they can be a real last-minute boost to businesses making sales too. With consumers primed to spend big as the financial year closes (up to $15 billion across two weeks, according to 2021 National Retail Association data), businesses should look at promotions to help reduce their stock on hand, and to meet any outstanding sales targets. Remember, consumers expect great prices at this time of the year, so use that enthusiasm to your advantage by creating enticing promotions.

On the other hand, the potential to purchase at heavily reduced prices means that EOFY is the ideal time to get ahead with some essential business purchases. Businesses like HP often save the best deals till last, offering heavy discounts and cashback on business items like printers. Taking advantage of EOFY sales with a business-related purchase means not just getting a good price, but also the ability to increase deductions. Businesses with annual turnover of less than $500 million can also benefit from the government’s instant asset write-off scheme.

Tax: deductions and reductions

This is where maintaining good records pays off. If you plan on taking advantage of tax breaks, you’ll need to provide the documentation to back up your claims.

Deductions are expenses that can be used to offset the amount of tax that your business pays. The government’s instant asset write-off scheme is one example of a tax deduction, but there are plenty more. Other examples include:

• Vehicle expenses, including fuel, registration and depreciation
• Employee salaries and super contributions
• Repairs and maintenance of business-related tools or property
• Asset depreciation 
• Operating expenses, such as subscriptions, fees, debts, small purchases, utility bills and even the cost of a bookkeeper. 

Tax reductions or offsets are mechanisms that businesses can use to reduce the overall amount of tax they owe. Examples include:

• Small business offset, in which sole traders or small business partners can reduce their tax obligation by up to $1000
• Research and development tax incentive, which encourages Australian-based research. Companies with turnover of less than $20 million may be eligible for a 43.5% offset
• Losses: businesses making a tax loss may claim against that loss in future years

Besides the examples mentioned, there are many more ways to apply tax deductions or offsets, based on the specifics of your business and circumstances. To get the best results, always keep records and work with a trusted tax accountant.

Are you looking to improve your business while adding some valuable tax deductions? HP is currently offering cashback when purchasing a HP+ printer, as well as a chance to try Instant Ink. Instant Ink is the hassle-free, money-saving ink and toner subscription service that makes sure you never run out. Get up to $50 cashback when you purchase a new HP+ printer, and sign up to Instant Ink to double it up to $100.  Claim your cashback now (T&C’s apply).