As we begin a new year, it’s time for cleaning out the old, making new resolutions, and getting organised. It’s the middle of the fiscal year, and you have six months until finances need to be in order for tax time and EOFY goals need to be met – so now is the perfect time to make sure that you are on track.
PERFORM A MID-YEAR SALES & FINANCE CHECK-UP
When it comes to mid-year check-ups, your accounting and business software (like the MYOB Exo Enterprise Accounting Software) can give you a snapshot of your current situation, help you evaluate where you stand and make a plan for the second half of the year in preparation to meet your EOFY targets.
Review your actual sales figures over the last six months and compare these to the forecasts you made at the beginning of the year. Are you on-target? Do you need to take action to boost sales over the coming months to meet your EOFY goals? This task can help you figure out your priorities for the coming months and even help you to make decisions about marketing strategies and budgets for the rest of the financial year to boost sales.
Your accounting software can also help you in tracking deductions, allowing you to take action to adjust your deductions and ensure your business is on track with your financial plan.
REVIEW YOUR ESTIMATED TAX PAYMENTS
It is so important for small businesses to make sure that they are paying estimated taxes correctly. Underpayment can lead to direct penalties, but overpayment can hurt your business financially by shrinking your cash flow during the year, leaving you less to work with.
Estimated taxes are only estimations, usually based on your tax payments from the previous year. However, mid-year is a great time to recalculate your taxes, especially when you have exact numbers for half of the year already. Your estimated tax payments for the second half of the fiscal year can be more accurate with a re-evaluation of your estimated payment amounts.
REVIEW YOUR FILING AND DOCUMENTATION SYSTEM
Keeping your business records and important documents organised can make a huge difference when tax time does roll around. One of the most stressful parts of filing taxes can be going through receipts, documents and expenses, so make sure that the filing system you currently use has been working for the first six months of the fiscal year. Consider making a backup copy of your records thus far, and check in with employees to ensure that they are keeping accurate and organised records.
This way, when the fiscal year ends, you will be able to understand and evaluate your financial year, file your taxes accurately, and avoid an audit!
Talk to us today to find out how a MYOB Exo solution can help your business to improve systems and meet targets. Call us on (08) 9328 1678 or fill out an online enquiry form and we’ll get in touch!