- January 1, 2022
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- Posted by: user
A lot of businesses go into super overdrive over the Christmas and New Year period. Some are busier after Christmas than before and for others it can be the slow season. But most businesses will experience January as a quite time for holidays. A time to recover from last year and get ready for next year.
Accountants don’t go on holidays (hence the old joke – what do you call an accountant who works 7-30 AM to 10-30 PM every single day of the year? Lazy!) But by all means, you have a nice holiday but maybe also take a little bit of your quite time to help grow your business and get ready for tax time (which is LESS than half a year away).
1 If you haven’t already done it, get your business using online accounting software. Set aside a bit of time to look into it. You can talk to Wealthpath Accountants about how to do it and what’s involved. Ring us for a no obligation discussion on 1300 268 800.
Online book keeping is a huge time saver. It’s also far more reliable and efficient and really will save you money in the long term. We are a Xero Bronze Partner and we recommend Xero (and so will most business owners you know) but MYOB and Quicken are also good. Have a quick look at the Xero website for some real life examples. Click HERE.
2 Have a real look at how much profit you’re making as opposed to how much you are losing. A lot of business owners never realise how much (or how little) money they are making until tax time. A quick but thorough look at your business when you have the leisure to do it properly means you can put in place things to make you more money in the last half of the financial year than you did in the first.
3 Do you think you will need to make a big purchase for your business next year? Maybe equipment, a vehicle or a shop extension. Use the spare time you have now to research exactly what you need and how to get it at the best price. But always keep in mind the tax implications for your business. The government has a whole range measures it is using to stimulate the economy (because of COVID). Consult with your accountant about big purchases (or loans for purchases) as they can have major tax and business implications.
4 What are you actually spending money on? You can make money by by bringing money into the business (selling stuff). Or you can spend less on running the business. But it’s not quite so simple as counting and rationing paper clips. Sit down and work out what your business spends money on. What supplies, services, rents and anything else that costs you money. What spending is effective and is there a way to make it more effective? Then ask two questions.
Can I save money? Is there a better way, a cheaper alternative, do I actually need this?
Should I spend more money? Sometimes you have to spend money to make money. Penny wise – pound foolish is a very old and still valid proverb.
5 Finally, talk to an accountant. By that, I mean sit down with a pen and paper and write down everything you think you should be asking a professional accountant. Include a list of the areas of your business that you think can be improved or opportunities you think could be a goer or really anything at all that’s worth running by a hard headed professional accountant who’s only job is to help and mentor businesses.
Finally, don’t forget to have a happy and safe Christmas and New Year!From the team at Wealthpath Accountants
Call us for a chat about how we can save you money and time and help your business to grow. 1300 268 800