With the end of financial year (EOFY) approaching, there’s no better time for small business owners to take stock of what’s worked and what hasn’t in the past 12 months. The EOFY season also gives small businesses the opportunity to start afresh and try new things to help boost their business results in the year ahead.
Here are three areas where small business owners can start thinking about new resolutions for the new (financial) year.
Invest in assets – and lower your tax
The 2017 Federal Budget has extended for another year its “instant asset depreciation” scheme, which allows small businesses to immediately write off purchases of up to $20,000 on their tax returns.
Those who haven’t taken advantage of the opportunity, which covers non-physical assets like software as well as physical ones, should think about how they might be able to do so before the end of this financial year – as well as in the next year. In the new year, consider using the new laws to invest in assets that help expand your business, whether it’s overseas or to capture greater volumes of local sales.
Please avail yourself of our tax planning service so we can advise you of the best strategy for your particular business.
Unclog your sales funnel
As you go through your profit and loss statements for this financial year, you may discover that your actual sales and margins don’t necessarily match up with your perceptions. Sales might be lower or higher than you thought, or coming in from unexpected areas where you didn’t invest as much. Take the time to understand any differences by talking to your salespeople or consulting your website and e-commerce analytics.
We can also run What If scenarios for you and quickly show you the impact of even minor changes.
Grow, diversify, or consolidate
Your EOFY results can provide the best health-check of your business, but it’s up to you to decide what “treatment plan” to proceed with. Use the last weeks of the financial year to consider whether you want to grow your revenues and sales, diversify into new market segments where you might have seen promising results, or consolidate by going deeper with existing customers and product lines. Knowing which type of strategy to focus on will help your business stay focused and stable in the coming year.
We can assist with your decisions by providing forecasts to help you visualise the impacts.
Let us assist your business, call us on 1800773643 to book an appointment.
This article was adapted from the original here