Beat panic buying with understanding
FOR some small business owners, the end of financial year can be a dreaded time of stress and panic to meet fast-approaching deadlines and cutoff dates.
These time pressures, coupled with an endless array of not-to-be-missed sales offers can create a sense of urgency and lead to "panic buys”.
Even though an EOFY purchase may be deductible, it's still important to weigh up the value it will provide to your business. While the instant asset write-off scheme is attractive, one of the best tax minimisation strategies is not to spend in the first place.
Given the access to online payment options and businesses with 24/7 operating hours, try to sleep on and carefully think about purchases before parting with your hard-earned money.
The preparation of business accounts and reports is not exactly a barrel of fun, but taking the time to analyse the numbers can give business owners a deeper understanding of their key business drivers.
For instance, those pesky BAS reports provide a wealth of valuable information from income, expenses and the all-important cash flow. The more frequently a business produces this information, the more relevant the data becomes.
Once again, technology provides a wealth of data and information at your fingertips, and much of it in real time.
The better the data, the better the decision making. Many small business owners will quip that it's all good and well to plan to pore over accounts, but who has the time?
With many business owners working 60-plus hours per week, according to Suncorp's SME vs Me report, it goes back to the old adage of the need to spend time working "on” your business as much as "in” it.
Many small business owners can feel the weight of the world in having to do "everything”, but running a business does not mean you are alone in the business world. Force yourself to engage in discussions with business providers, including accountants, advisers, bankers and technology specialists.
There is nothing worse than receiving a call from a provider asking why your business hasn't adopted a cheaper and more efficient product or service, and then to learn it has been around "for a few years”.
While this may be valuable time out of the business, having regular discussions with your providers can repay itself in knowledge and opportunities and ensure you are up to date and using existing products and services to their fullest.
EOFY need not be entirely stressful.
Hopefully these three tips provide some food for thought: First, start the process early, thereby removing the acute time pressures. Make better use of existing data and information - the more real-time the better - and talk widely with providers and peers.