planning for the new financial year

EOFY: Plan Don’t Spend

Approaching the end of financial year, small businesses are being bombarded with messages encouraging them to spend up big to take advantage of the $20,000 immediate tax break. The accounts people are following up debtors and creditors, and the warehouse team is stocktaking.

While it’s important to have everything in order at the end of the financial year, it’s also a time for focusing on the future. Don’t wait till the new financial year to start planning.

June is a good month to:

  • Look back over the year that’s been and ask yourself “want went well?”
  • Review and update your business plan
  • Remind yourself of your goals and priorities
  • Assess your business model and your value proposition and tweak them if you need to.

And, remember the $20,000 tax break is just that, a tax break. Meaning, if you spend $20,000 on deductible expenses for your business you will get a 30% deduction or $6,000. So your cash outflow will be $14,000 instead of $20,000. That is still $14,000 of your hard-earned dollars that you have to spend. Don’t be sucked in by the advertisers, only buy what you’ve planned to buy and what you need in your business.