As we approach the end of the financial year (EOFY) 2024, it’s time to start preparing for the new financial year 2025. The EOFY is a crucial time for businesses in Australia, as it’s the time to finalize accounts, complete tax returns, and plan for the future.
How This Could Affect Businesses and Staff
The EOFY can have significant implications for businesses and staff. For businesses, it’s an opportunity to review financial performance, identify tax deductions, and set goals for the next year. However, it can also be a stressful time due to the administrative workload and the need to comply with tax regulations.
For instance, according to a survey by the Australian Taxation Office, small businesses spend an average of 5 hours per week managing their tax compliance. This can add up to over 260 hours per year, which is a significant amount of time that could be spent on other areas of the business.
For staff, particularly those in finance and HR departments, the EOFY often means a higher workload. It’s also a time when employees may be considering their personal finances, superannuation contributions, and tax deductions. Studies found that 1 in 3 Australians do their tax return as soon as possible to get their refund, indicating the importance of EOFY for personal finances.
Advice to Prepare Effectively
To prepare effectively for the EOFY, businesses should start planning early. Here are some tips:
Review Your Finances
Look at your profit and loss statement, balance sheet, and cash flow statement to understand your financial position. According to a report by Xero, businesses that monitor their finances regularly are 30% more likely to grow.
Identify Tax Deductions
Speak with your accountant to identify potential tax deductions, such as business expenses. The ATO reports that small businesses claimed an average of $20,000 in deductions in the last financial year.
Plan for the Future
Set financial goals for the next year and consider how you can achieve them. A study by the Harvard Business Review found that businesses that set clear, measurable goals are twice as likely to outperform their competitors.
Support Your Staff
Ensure your staff have the resources they need to manage the increased workload during the EOFY. Research suggests that providing support and training can increase staff productivity by up to 20%.
While the EOFY can be a challenging time for businesses, it’s also an opportunity. With careful planning and preparation, businesses can navigate the EOFY effectively, setting themselves up for success in the new financial year. At Zoom Recruitment, we’re here to support businesses through this process, providing expert recruitment services to help you build a team that can take your business to new heights in the 2025 financial year.
