Here are some essential tips on how you can maximise this time for long-term gains:
1. Advance eligible payments
Shift into proactive gear by advancing payments or expenses to reduce taxable income. Clever timing—like settling big-ticket items like equipment purchases or hefty supplier invoices before year-end—can fast-track your deductions and significantly lighten your tax load. It’s smart finance.
2. Maximise the instant asset write-off
Tap into the generous instant asset write-off scheme, recently extended for another 12 months, allowing deductions of up to $20,000 per asset. This incentive is more than just a tax relief measure, it’s a strategic tool to gain immediate financial benefit. Double-check you're fully leveraging the updated thresholds and criteria to make the most of this opportunity before the curtains close on this financial year.
3. Annual insurance review: protect & save
Reviewing your insurance premiums annually is crucial to ensure you are getting the best deal (whilst still adequately protecting your business against industry-specific risks, such as workers' compensation and professional indemnity risks). Compare policies and premiums from different insurers to find the most cost-effective and comprehensive coverage, whilst ensuring your business remains protected.
4. Analyse client margins for profitability
In a landscape of rising business costs, vigilance in client profitability is key. Analyse the costs and revenues of each client relationship to check that your rates are keeping pace with market conditions. If the figures don’t add up, it’s time for tough decisions—renegotiate, recalibrate, or even cut ties to steer towards sustainable profitability.
5. Choosing payroll: outsourced vs. in-house
Outsourcing payroll might seem simple for small-scale operations, but as you grow, the costs can spiral just as fast. Building an in-house payroll capability gives you control and often proves more cost-effective once you hit the 50+ temp payee mark. Effectively evaluate your business’s scale and future needs to make the best choice.
6. Streamline your business structure
A thorough review of your business structure, particularly if it incorporates family trusts, can offer notable tax benefits and asset protection. Adaptability in income distribution can maximise tax thresholds for non-working family members while shielding your assets from potential risks. Consult with experts to ensure your setup is not just compliant, but optimal.
7. Is your accountant a forward thinker?
If these insights are new to you, it might be time to switch to an accountant who doesn’t just recount the past but actively prepares you for future growth. Choose a financial coach who mirrors your ambition and provides strategic foresight.
8. Leverage payroll technology
Now is a great time to review that you have the right tools in place to support your business’s current workforce and support future growth (hot tip – if your team are manually keying timesheets/onboarding information, award interpretation is done using a spreadsheet or payroll takes 3+ days, you have some efficiencies to unlock!)
The smart choice for efficient payroll management
In the complex terrain of payroll management, FastTrack360 emerges as a critical tool that not only simplifies but also significantly enhances your payroll operations. As you gear up for the end of the financial year, integrating this robust technology can be a game-changer for your Australian staffing firm.