While your business keeps ticking along on the client-facing side, the backroom is looking at another end of financial year.
This is a fantastic opportunity to make sure you’re getting the most out of your stock, finding the best opportunities to save money and keeping in line with the taxation changes from the Australian Taxation Office (ATO).
The best place to get this advice is from your small to medium-sized business accountants in Bankstown, and the team at DBS Accountants is on hand to help over these final days before the close of financial year.
What can you do to make sure your profits are flowing?
Whilst businesses are required to conduct a stock take at the end of each financial year for proper valuation of stock, it is also a good time to write off all obsolete stock, and very importantly, consider the appropriateness of stock mix and stock holding levels. Stock represents locked up cash, so overstocking hurts profits. It is important to identify slow moving items, those with a low-shelf-life, items with high degrees of obsolescence – these levels should be kept very tight.
The end of the financial year is also a good time to review your accounts receivables and write off all bad and non-collectable debts. ATO requires the debt to be properly written off in your books before you can claim a tax deduction on this count. At the same time, it is highly recommended that businesses review their credit policies to minimise bad debts and to have proactive collection and follow-up processes.
You should also look at reviewing the way you are paying super contributions to employees. There are opportunities to save money over the next few days, and even beyond, so looking to SME business advice will help you ensure you’re making all the right moves.
According to the ATO, only around 65 per cent of businesses in Australia were ready for the SuperStream implementation on June 1. This change means businesses need to be making their payments online and in one simple data set.
“The super industry is ready to help, so initiate contact and open the conversation with a SuperStream expert,” said ATO Deputy Commissioner James O’Halloran.
Make sure your business is humming before the end of this financial year, and get in touch with DBS Accountants to get the best advice possible.