EOFY is more than tax time for local businesses

As the end of the financial year approaches, many business owners across the Hilltops are turning their attention to receipts, invoices and tax records. However, according to local accountant Scott Murray from Tester Porter Services, EOFY should be about much more than simply preparing for tax time. “Most people think of EOFY as an accounting exercise, but it's also a valuable opportunity to step back and assess how the business is performing,” Scott said. With rising costs, changing consumer habits and ongoing economic pressures affecting many small businesses, Scott said EOFY provides a natural point to review what is working and what may need adjusting. “Business owners spend so much time working in their business that they often don't get the opportunity to work on it,” he said. “Looking at your numbers can tell an important story. Which products or services are performing well? Are your prices still covering your costs? Where is your profit actually coming from?” Scott said one of the most common challenges for small businesses is cash flow, making it important to review outstanding invoices and ensure records are up to date before 30 June. “Good record keeping throughout the year makes EOFY much less stressful. It also gives business owners better information for making decisions going forward.” While every business is different, Scott recommends business owners take time before the end of June to review their finances, check unpaid invoices, update records and consider their goals for the year ahead. “EOFY isn't just about looking backwards,” he said. “It's also about setting yourself up for the next 12 months. The businesses that regularly review their performance are often in a much stronger position to make informed decisions.” For local businesses, EOFY can provide a valuable opportunity not only to meet compliance requirements, but also to take stock of achievements, challenges and opportunities for growth in the year ahead. EOFY Quick Check Before 30 June, consider: - Are your records up to date? - Have you followed up outstanding invoices? - Have you reviewed your business expenses? - Do your current prices reflect your costs? - What are your goals for the new financial year?