HELPING YOUR BUSINESS GROW

As dawn breaks into a new financial year, we at Hills Accountants in Hobart have the opportunity to show you that this brings a wave of opportunities for businesses to review, strategise, and conduct some business planning exercises. Whether you're a seasoned veteran or a small business owner just beginning your journey, the following seven tips will serve as your roadmap to a successful and fruitful financial year.

1. Evaluate Your Systems

At the onset of this new financial year, critically examine your existing business systems and processes. Search for areas where efficiency can be improved. Could there be technologies you can leverage to simplify or automate your operations? It might be time to eliminate bottlenecks and redundancies to pave the way for smoother, more efficient workflows.

2. Revisit Your Insurance

This is an excellent time to revisit your insurance obligations. Do you fully understand your compulsory insurance requirements? And are there better deals available for you? Personal insurance can help safeguard your income should you fall sick, while various other insurance types might be pertinent to your business.

3. Make the Most of Asset Write-Offs

The instant asset write-off, which has been a popular scheme, came to an end on 30 June 2023. However, an adjusted instant asset write-off scheme will replace it from 1 July. This means businesses can claim the business portion of any asset as a tax deduction, up to $20,000. Consult your accountant or tax advisor to confirm your eligibility and to navigate the rules effectively.

4. Optimise Your Tax Planning

Develop a comprehensive strategy for the new financial year to maximize government concessions, deductions, and asset write-offs. Regularly analyse your profit and loss and track your revenue to ensure you have adequate cash flow.

5. Understand and Utilise STP Phase 2

The Australian Government has expanded the Single Touch Payroll (STP) initiative to further streamline employers' reporting workloads. STP Phase 2 allows more efficient reporting of employee tax file declarations, among other benefits. Understanding these changes and how they can benefit your business will streamline your interactions with government agencies.

6. Track Your Business Performance

Proactively monitoring your business performance, cash flow, and trends can help you anticipate and tackle challenges before they become critical. Utilise past data to understand what strategies worked and which didn't. Identifying patterns in sales, turnover, and productivity will help paint a more comprehensive picture of your business' performance.

7. Develop Effective Growth Strategies

Now that you have a firm understanding of your business's performance, it's time to develop growth strategies. Consider whether you need to invest in staff, supplies, or equipment to meet your goals. Update your business plan regularly to stay focused and on track this financial year.

By applying these seven tips, you can set your business on the path to continued success and growth in the new financial year.

However, keep in mind that these are only tips and should not be considered professional advice.

Every business is unique and what works for one may not work for another. So, make sure that you get detailed professional advice to specifically suit your business needs and tailor these tips to your needs for optimal success.

For great help and advice, email Kathy today at kathy@hillsaccounting.com.au or Phone 03 62737800