A year in business
Regular
business and tax reporting
When running a business, it’s
important to regularly keep track of how your business is going. As a business
owner, there are a variety of financial reports and statements you can use to
track your business. These reports can help you to:
- keep track of your business finances
- make business decisions
- set goals for your business
- apply for finance for your business
(such as approaching an investor or a bank for a loan).
To help you get started, learn
how to create a budget using our free financial templates.
Tip: Most
businesses will also need to lodge business activity statements (BAS) every
month or quarter for tax purposes.
Did you know?
If your business is a company,
you will be sent an annual statement to complete around the
anniversary of the date you registered your company.
End
of Financial Year (EOFY) reporting
There are a number of reports
and tasks you can complete at the end of your financial year (30 June, for most
businesses) for reporting and tax purposes. These reports and tasks are useful
to track how your business is going year by year, and include:
- summarising your income and expenses in
a profit and loss statement
- conducting a stocktake
- summarising your record of debtors
and creditors
- pulling together any records of asset
purchases or money you spent on improvements to your existing assets over
the year, so you can calculate depreciation expenses to claim for capital
gains tax purposes
- completing and lodging your income
tax return to report your business income and claim deduction
·
Tip: to avoid delays in processing your return, make sure you
use the correct Business industry code – see the Australian Taxation Office
(ATO) Business industry code tool
- pay super contributions for your employees
and send the data electronically – read SuperStream for more
information about reporting and paying super electronically
- lodging other yearly reports or returns,
such as PAYG withholding, fringe benefits tax (FBT), Goods
and Services Tax (GST), and the taxable payments reporting system.
Did you know?
If you operate a business as
a sole trader, you need to lodge a tax return including the supplementary
section – business and professional items schedule for individuals – regardless
of your income.
Find out
more
- Find out more about essential tasks
at end of financial year (EOFY).
- Find out what reports and returns to
lodge with the ATO.
- Check out our information on income
and deductions and business activity statements.
Growing
your business
As a business owner, it’s
important to plan for your business’s future, including ways to grow your
business. The coronavirus (COVID-19) has impacted the growth opportunities for
many businesses, so finding ways to grow your business will help keep it going,
for example:
- creating or offering new products
- using new business processes to make you
more efficient or save costs
- entering new markets and expanding your
customer reach.
It’s important to update your
business plan as your business goals change. This will help you to grow in a
way that is sustainable for your business, taking into account the resources
you have and what opportunities are best for your business.
Find
out more
- Have a look at the South Australian
Department of State Growth’s information on Growing your business.
- Check out our Growing a business
checklist, which takes you through the different methods and issues you
should consider when growing your business.
Advertising
your business
Advertising can help you to
reach a larger audience and attract more customers to your business. There are
a number of ways to advertise your business, including through:
- having your own business website –
provides a way for people to reach your business and details in their own
time and location. You may even be able to set it up so you can sell your
goods or services directly from your website
- social media – engage with your
customers and advertise your business by sharing your messages with your
audience online
- email newsletters or blogs – regularly
create content related to your business to keep your audience engaged. If
using an email newsletter, it’s important that you get permission before
you send emails to people
- newspapers and magazines – have a print
advertisement or list your services within the classifieds
- television – advertising on television
can be costly, but can help you reach a large audience
- radio – similar to advertising on
television, though the cost is usually less and the audience reach is more
localised
- mail – dropping advertisements in
mailboxes can be a simple cost effective way to reach your local area
- phone books and directories – have your
business listed on various business directories so you can be found by
potential customers when they’re looking for a service.
When choosing the best way to
advertise your business, consider the audience you are trying to reach, as well
as the costs involved. You don’t have to spend a lot of money to advertise and
promote your brand, so choose what is likely to be the most effective for your
business.
Find
out more
- Check out our advertising page
for more information on advertising your business.
- Read more about Ways to advertise
your business on the Business Victoria website.
- Not sure where to start? Here are some
tips and tools to help you develop a marketing strategy.
- Read about some things to consider
before you promote your business.
Read about marketing your
business during COVID-19 and how to keep your customers loyal during the
pandemic.
MARKETING
Saving
money on energy costs
Reviewing the energy usage in your
business is a great way to help you save on costs. While it seems like a
necessary expense, you can often find ways to save through:
- understanding how energy is being used
in your business and where you can reduce your usage
- reviewing your contract and searching or
negotiating for better deals
- upgrading to more energy efficient
equipment – while this may be a big cost upfront, it may save you money in
the long run.
Being environmentally conscious
in your business can also boost your business and brand reputation to the
public.
Find out more about environmental
management in your business.
If your business is struggling
with energy bills due to COVID-19, find out what help you can get with your
energy bills.
SAVING ON YOUR
ENERGY BILL
Planning
for exiting your business
Even though you may not want to
think about selling or closing your business, it’s important to plan properly
for when and if you do.
There can be many reasons why
you decide to exit your business, including:
- your business is no longer viable to
keep running
- you are looking to retire or pursue
other opportunities in life and no longer want to run your business
- you have achieved your business goals
and are ready to close or pass the business on
- your business is forced to close as it
has become insolvent.
Whatever your circumstances are
for exiting, planning your exit ahead of time will help make what can be a
difficult and emotional process easier.
Watch the journey of
selling or closing a small business video series for help through the
process of exiting your business.
Tip: If
you are selling or closing your business you should cancel your ABN.
Did you know?
You can call the ATO if
you sell or close your business, to find out if you need to finalise any
GST, employee, contractor or other obligations, and what records you need to
keep.
Find
out more
- Read about the important things to
consider when deciding whether to sell or close your business.
- Find information on tax issues to
consider when changing, selling or closing your business on the
ATO website.
- Check out these suggested steps to guide
you through the process of closing your business or selling
your business.
- Find out more about closing your
company and cancelling your business name with the Australian
Securities & Investments Commission (ASIC).
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