In the lead up to the end of the financial year (EOFY), small business owners are working long hours to get their paperwork into shape and meet their tax obligations.
“Many small business operators are making significant personal sacrifices over and above running their day-to-day business, making EOFY not only stressful but a period where meeting their EOFY obligations is eating into time that should be spent on working to achieve business results,” said John Moss of MYOB.
The latest MYOB Business Monitor Survey has found that 42 percent of owners are working weekends and a further 26 percent are working after midnight to meet their reporting obligations. A large proportion, 35 percent, are putting off getting started on their paperwork until July.
“While it’s easy to put the extra work on the backburner, there are several actions small business owners can take to ensure they aren’t caught out at tax time. By starting early as well as seeking out help from their advisers or using accounting software, SMEs can save a great deal of personal time and stress further down the track,” said Moss.
The survey revealed that the timeline for EOFY preparation varies widely between owners.
Around 30 percent of business owners get organised before the end of June, while 10 percent don’t begin until the end of August.
“This is one of the most important administrative activities of the business year and getting it right can mean the difference between business success and failure,” said Moss.
The survey found that 54 percent of small to medium-sized business owners in the Agribusiness sector were most likely to start preparation once the financial year ended. Many sole operators are also following this trend, with 41 percent beginning the process post-June 30.
When looking at preparation methods, over a third of business owners tackle aspects of their EOFY reporting themselves, with the remainder using the support of an accountant or a bookkeeper.
“What we’re seeing here is a discrepancy between how small business owners are feeling and what they are willing to change. We know SMBs are feeling the pressure, yet a third of SMBs say they won’t be doing anything to cut down the time it takes to get ready this year.”
“We urge all SMBs to make a change this end of financial year – whether that means talking to an accountant, upgrading or implementing software, or simply starting preparation ahead of June 30. This will help business owners remain focused on what matters most – running their business.”
Image (supplied): John Moss