LIKE most people who work in the financial services sector, I’m still suffering the effects of the biggest date in our calendar – the dreaded June 30. Like Christmas, the date stays the same each year, yet guarantees to turn even the most level-headed bookkeepers, accountants and bankers into a flurry of panic.
End of financial year (EOFY) is your financial professionals’ harvest equivalent. Likewise, EOFY usually coincides with something major on the farm, so it’s in everyone’s best interest to be as organised as possible in the lead up to June 30 so as to make the best of the relationship you’ve built with your financial professionals. They are there to support you, but require your support in return. These are my top five tips to best prepare yourself and your business for the end of financial year before the rush:
- Compile all your business receipts, statements and finance contracts throughout the year and pass them straight on to your accountant where possible. Hang on to any paperwork that might be beneficial and save yourself the arduous task of trying to collect it all when you need it.
- Keep your business professionals – bankers, financial planners, accountants and solicitors – in the loop with any business structure changes, particularly those related to succession planning. Even something as simple as a business name change can create a mountain of work behind the scenes that can hold up any straightforward EOFY requests.
- Make an appointment with your accountant as soon as your March financials are finalised. By this stage you should have a good idea of your business’ position for the remaining quarter and will be able to adequately plan for your tax position. Keep an ear out for any legislation changes to tax minimisation tools such as superannuation or farm management deposits so you understand options available to you.
- Give your banker a heads-up on your tax planning strategy so they can allow time to implement it for you. For example, switching interest payments from arrears to advance (or vice-versa) is not as clear-cut as you may expect, and will require time to process and a trip to the bank to sign documents. Understand that all your financial professionals have a suite of clients to service over this busy time and appreciate any opportunity to map their workloads.
- Prioritise any banking or accounting requests in terms of EOFY. Does your request need actioning before 30 June? Will there be tax implications? If not, consider pushing the request out to July after the EOFY rush, or at least allowing a longer lead time.
Next June may seem like a world away but if you follow these small tips you’ll sail there smoothly.
- Megan Davies, Future Farmers Network vice chairperson