With expert insight from Jo Elliot, Joco Accounting
(SMBs) as it presents an opportunity to reflect, review, and plan ahead.
Australia’s leading digital presence provider – who works with 28,000 SMBs while providing important free support to over a further 300,000 – Localsearch, has partnered with Jo Elliot, Business Owner from Joco Accounting, to help businesses navigate this crucial period.
If you don’t have an accountant your tax return is due to be lodged on 31 October 2023. On the other hand, if you do have an accountant, your tax return is not due to be lodged until 15 May 2024. Jo states, “if you were late the previous year, then you will have to lodge your tax return with everyone else on 31 October 2023.”
Over the past few years, the ATO has accepted poor excuses for late tax lodgement. This is no longer the case, unless you have a good reason for lodging late, they will decline.
Top 3 Tips for Small Business Owners around Tax Time
1. Check your accounts receivable
It’s worth looking at your accounts receivable around tax time to avoid paying income tax on income you haven’t yet received and are very unlikely to receive in the future.
“If you have customers that aren’t paying you and haven’t for a long period of time, write it off before 30 June 2023,” Jo said.
2. Do a good stocktake
Small businesses should do an in-depth stocktake every year to find out what stock and inventory they have available on hand, to achieve a better tax deduction.
Jo shared: “If you have damaged or lost goods that aren’t being accounted for, you should get it all deducted instead of having it held as an asset.”
Petty cash is another overlooked area to focus on, as it can add up to thousands of dollars in small payments.
3. Get your tax in early
If you are a GST-registered business, your Business Activity Statement (BAS) is due for lodgement in August. If you’re up to date, you will have most of the information needed for your income tax. So, why not get it done early?
Jo said, “Once you’ve done your BAS, I encourage you to get your tax in early. August is the key time to do this.”
Lastly, check you’re up to date with your tax incentives and grants before lodging your tax. As Jo said: “I always recommend regularly using the government grants and programs finder to see what is currently available to help support your business”. This includes the Small Business Technology Boost and the Small Business Skills Training Boost.
EOFY is also important for SMBs and start-ups to take stock of their business and Spring clean their marketing for the new financial year.
Daniel Stoten, Co-Founder and Chairman, Localsearch reveal his top tips for SMBs taking advantage of this important time of year:
1. Offer exclusive EOFY promotions
To capitalise on the end of the financial year, create special promotions and incentives to entice customers. Consider offering limited-time discounts, bundle deals, or freebies to boost sales and encourage repeat business. Leverage the power of email marketing to communicate these exclusive offers to your loyal customer base. This is also a great way to use up old stock or services, and prepare for the new financial year!
2. Analyse and refine your digital presence
When it comes to your website, take some time to navigate it as objectively as possible. Reflect on how effectively it shows your brand’s personality and offerings, as well as how functional it is. Remember, your business’ website is like its resume, so it might also be worthwhile to use analytics tools and SEO auditing to assess the effectiveness of the website, identify areas of improvement, and refine your approach. Pay attention to key metrics such as conversion rates and website traffic.
Next, check your Google Business Profile is up to date. When audiences Google search your services, products, or business name, you’ll want that little box with your details to be up-to-date. Check if it links to your website, the accompanying image/s are representative of your business, the contact details are correct, as well as your address and business hours.
You want your audience to be able to quickly verify your business before their attention span runs out.
3. Revise your social media strategy
Social media platforms have become indispensable for businesses of all sizes, so utilise the end of the financial year to revitalise your social media strategy. After all, a whopping 82 percent of shoppers use social media to make a purchase (according to The Influencer Marketing Factory’s 2022 Social Commerce Report).
Engage with your audience by creating compelling and relevant content that showcases your expertise and offerings. Leverage social media advertising to reach a wider audience and generate leads. Don’t forget to actively monitor and respond to customer feedback and inquiries on social media to build strong relationships and enhance customer satisfaction.
Take some time to plan what content you’d like to upload, and consider putting some money behind ppaid social media ads. The strategy itself can be as simple as uploading a handful of times a month, so long as you use the authentic voice of the business and visuals that represent it.