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EOFY 2020 – Preparing your finances, and looking after yourself

EOFY 2020 – Preparing your finances, and looking after yourself
May 29, 2020 va-admin

The end of another financial year (EOFY) is fast approaching. It’s important that you’re prepared for this period every year, however this year, the global COVID-19 pandemic has meant that every business owner is contending with an untold number serious and unexpected forces, at the same time as (for many) trying to keep their businesses afloat and staff properly cared for.

To keep your business in the best shape possible, it’s vital that you ensure your mental health and wellbeing are being maintained. It’s all too easy for things to get out of control, and fast.

To help, we’ve put together some helpful tips for small business owners to keep in mind in the lead-up to EOFY, as well as some advice for looking after your (and your staff’s) health during this extraordinarily challenging time.

Preparation is key

The Australian Government’s Business website has some useful tips for business owners to keep in mind as we head towards June 30. The key to ensuring the EOFY is managed as efficiently as possible is being prepared. Being organised makes a world of difference when the deadlines are looming.

The Government’s advice includes clearly documenting:

  • Profit and loss statements
  • Stocktakes
  • Summarising a record of debtors and creditors
  • Records of asset purchases or expenditure on improvements (for expense claims and for capital gains tax purposes)
  • Meeting any superannuation requirements
  • Making digital copies and backups of paper records

Having all of this taken care of ahead of time will save you the headaches of scrambling to get through it all at tax time.

You can claim that!

You can visit the ATO website to see what tax deductions you can claim, especially if you have been working remotely (ie from home) during the COVID-19 pandemic.

You can claim a variety of deductions relating to remote working, including:

  • Home office equipmentincluding computers, printers, telephones and furniture and furnishings
  • The full cost for items up to $300, as well as the decline in value for items over $300
  • Heating, cooling and lighting, repairs, cleaning costs
  • Other running expenses including computer consumables (for example, printer paper and ink) and stationery

The impact of COVID-19 on business owners’ mental health

Look after yourself. COVID-19 has impacted everyone in one way or another. Stress levels are high and it’s inevitable that the past couple of months is going to have an impact.

Australian Government agencies at both state and federal level have already acknowledged the widespread mental health concerns that are emerging, and are doing something to assist.

“The impact of COVID-19 on small businesses is devastating and the toll it is taking on people’s mental health is serious,” the Federal Government explains. It has published a list of practical ways for small business owners and staff to access mental health support during this difficult time.

The mental health not-for-profit organisation Heads Up also provides advice for small business owners to better cope with and manage their stress during this universally stressful time.

The good news is that there is plenty of support out there for those who need it. It’s important, as a business owner or manager, that you lead by example, and care for your own mental and emotional health first. Build a culture of open communication and support in your workplace (whether it’s remote or not), in which your co-workers and staff feel safe expressing themselves, and are encouraged to ask for or access help if they need it.

Phone a friend – or your accountant!

Thankfully, there are many skilled accounting and tax experts available to help guide you and your business through the often daunting EOFY processes and tax return lodgement. Vital Addition accountants are SME experts and can assist you with any concerns you have regarding your 2020 Tax Return; you have enough on your plate. Leave the numbers to us!