GST for small business: Everything you need to know
As a small business owner, you’re probably busy sorting out all your end of financial year (EOFY) requirements and getting ready to close the chapter on the (financial) year that was. While you’re at it, and have all the relevant information on hand, now’s also the perfect time to look ahead and start planning for the upcoming financial year.
To help you start financial year 23 on the right foot, we’ve scoured the internet and compiled 9 tips for planning for the new financial year. Check them out below.
Tips for planning for the new financial year
1. Review your finances and cut down on costs
Want to free up cash and boost that profit margin? Take a look at your financial statements from the past year to see if you can reduce how much you’re spending.
You may be able to reduce the ongoing costs in your small business by:
- purchasing your most used items in bulk
- negotiating lower rates with your suppliers and utility providers
- unsubscribing from services you no longer use
- rewarding employees with non-monetary incentives
2. Forecast your cash flow
As any small business owner knows, you need a healthy cash flow to keep your operations ticking and have stability for long-term success.
Here are some ways you can keep that cash flow nice and strong all year long:
- create a cash-flow statement (this provides an overview of all the money coming in and out of your business over a certain period, usually a quarter or month)
- create a cash-flow forecast (this is an estimation of the money entering and exiting your business in the future, usually the next financial year)
- update your cash flow projections to plan for any potential shortages
- shorten or change your payment terms
- offer discounts to clients who pay early
3. Worker smarter not harder
Want to achieve more of a work-life balance and actually have time to think about growing your business, rather than just keeping it running? It’s time to implement some time-saving strategies.
You can create more room in your schedule by:
- creating templates for your frequently used emails, invoices, and letters
- setting deadlines for tasks so you can bunker down and get them done, rather than chipping away at them endlessly
- doing a regular sweep of your emails and handling all the new ones at once, i.e. replying, delegating, filing or deleting the emails as needed
- automating recurring payments and transferring a percentage of your daily takings to your external bank account (with the Tyro Bank Account if you’re a Tyro customer)
- outsourcing certain services such as marketing and advertising
4. Assess your business structure
As your business grows and more people join the team, it may be worth considering your business structure to ensure you’ve got the most tax-effective set up in place for your situation. If you’re thinking about swapping structures, be sure to chat with a financial advisor (and your accountant) first to make sure it makes sense financially and will benefit your business.
5. Reassess your business budgets, goals, and strategies
Your business may have changed a lot in the last financial year. It’s important to take a look at the budgets, goals, and strategies you previously set for your business to see if they need any tweaking, considering where you’re at now and where you want to go.
Take the time to review your short- and long-term goals; sales and marketing budgets; which strategies have and haven’t been working; the market and your competition; and if there’s any new business opportunities that are worth jumping on.
6. Check your compliance obligations
Another important thing when it comes to planning for the new financial year is making sure all your licensing, permits, and registrations are up to date. You should also double-check your work, health and safety obligations to ensure you’re fulfilling all your risk-management duties.
Now’s also an ideal time to check to see if your insurance coverage still meets your business needs and, if not, changing it to something that does.
7. Organise your records
Organisation really is key when it comes to running a small business. Having methods to store and file your records is essential for smooth-sailing operations, as well as meeting your tax obligations, demonstrating your financial position to lenders if you wish to take out a loan, and providing an overview of how your business is performing.
Want an easy way to access transaction reports for your records? With the Tyro App or Tyro Portal you can easily generate reports with the touch of a button, on a selected EFTPOS machine for a specific day, reconciliation, merchant fees, and more.
8. Update your technology
Technology is always changing for the better. Making the move to the latest and greatest tech can speed up and streamline processes, helping you more easily manage and grow your business. When planning for the new financial year, have a think about what hardware and software could do with updating, to accelerate your business and make it more efficient.
Could the way you take transactions do with an overhaul? Consider Tyro EFTPOS—a fast, simple, and secure EFTPOS solution that works better for your business.
9. Consider financing options for growth and expansion
Planning on expanding your business or need a cash flow boost for the upcoming financial year? Consider business financing.
You may be able to secure additional funds by:
- chatting to your bank about a business loan, overdraft or business credit
- applying for a government grant (if you’re eligible)
- purchasing an additional vehicle, machinery or business equipment
- researching crowdfunding or private investor options.
If you want to borrow some cash for your business, our very own Tyro Business Loan1 offers unsecured amounts up to $350,000 to help you expand, finance new inventory, or just keep moving.
The new financial year is an open door of opportunities. Make sure you step into it on the right foot by following these strategies.
Enter the new financial year with the support of Tyro solutions! Get in touch with us to find out how we can help.
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1 Tyro Loans are only available to Tyro EFTPOS/eCommerce customers and are subject to meeting Tyro’s eligibility and credit criteria.