Tips for the End of Financial year

With the end of the financial year (EOFY) fast approaching, we’ve been working closely with our corporate advisor and accounting partners on various transactions.

We’ve distilled some key tips arising from those transactions that we’d like to share with you.

1

Check your business details – ACN, address, business name and TFN

We start with the most basic. Checking your business’s detail before the EOFY is important as it will indicate how your business is tracking. For example, if your business has grown there is a high chance that you may have moved spaces which means your address has also changed. Checking your business details is important, as it promotes transparency with your stakeholders and customers. This is also important if you’ve changed entities and you have contracts with customers still in the old entity name.
2

Review and update your business and marketing plans and/or constituent documents

Reviewing and updating your business and marketing plans before the EOFY is important because it will provide insightful information on your spending, profits, and business growth. Your business and marketing plans will guide your business’s future plans and improve decision making. That old shareholder agreement in the top drawer; does it reflect the business you are now and prospectively wish to be (especially if you are raising debt or equity capital).
3

Check your insurance policies and premiums

For your business to be adequately protected, you should review your insurance policies at least annually or more frequently if your business changes. The EOFY is the best time to do this to ensure your business is always protected in case of any mishaps.
4

Check if your business structure suits your circumstances

The EOFY is the best time to check if your current business structure suits your circumstances or whether you think it’s time for an update. For example, if your business is rapidly growing and expanding, you may want to change your business from a sole trader to a company. The appropriate structure will depend on several factors including compliance and taxation regulations and should therefore be reviewed from both an accounting and legal perspective.
5

Follow up on any debts owed to your business

The EOFY is the best time to recover any unpaid debts owed to your business. You may consider updating your terms and conditions and seeking to secure any goods or services provided on credit on the PPSR. There are steps you can take to recover unpaid debts from customers or other businesses and measures you can take to reduce the chance of it happening again.
6

Review workplace policies and employment contracts

Checking your workplace policies is essential no matter what workplace or business you run. Over the past year, there have been many changes, and your business’s policies and premiums need to reflect these changes. Why? It will help clarify and reinforce standards expected of your employees and ensure that everyone is on the same page. Do your award payments need updating? Does that prompt a new employment agreement given the more senior role of the employee and what issues might follow if they leave your business?

Please get in touch

We’d love to help you and your business realise all the benefits of carefully planned legal support.

Suite 4, 50 King William Road, Goodwood SA 5034

(08) 7129 4483

info@cxtlegal.com.au

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