44 per cent of SMEs to burn the midnight oil ahead of EOFY
29 Jun 2017
- 37 per cent of SMEs will work weekends ahead of EOFY
- 44 per cent say EOFY process will significantly impact work/life balance
- 40 per cent will claim the $20,000 write off at tax time
As consumers enjoy end of financial year (EOFY) sales, Small and Medium Enterprises (SME) across Australia are working through this high pressure time of year, investing many hours preparing their company tax obligations.
Newly released MYOB research reveals 37 per cent of SMEs have sacrificed their weekends and 23 per cent have worked past midnight in the lead up to the EOFY.
MYOB CEO Tim Reed said: “Small business owners are already under pressure to meet sales targets, retain customers and ensure cash-flow is steady for their business. These every day obligations of running a business can be all consuming, so it’s no surprise that people are forfeiting their evenings and weekends to complete their tax reporting.”
The research showed 41 per cent of SMEs were planning to complete their tax themselves, up 36 per cent from last year.
“The increase in the number of operators taking on their own year-end tax preparation is likely a reflection of the uptake of cloud accounting,” Mr. Reed said. “Over the last 12 months we’ve seen businesses embrace online accounting solutions, which makes these year-end tax burdens far less onerous than older, desktop software.”
Policy changes harnessed at EOFY
MYOB’s June SME Snapshot found business owners have been following government policy changes closely, resulting in 43 per cent of SMEs planning to use the newly legislated $20,000 asset tax write off this financial year.
Additionally, 63 per cent of small business owners are positive about the decision to reduce company tax rates with 44 per cent of businesses plan to invest these savings back into their business.
“SMEs are very aware of policy changes, and the significant impact they can have on their businesses, especially during end of financial year, but I’d always recommend that if they have any questions or uncertainty that they talk to their accountant.” Mr. Reed said.
Industry addresses cash-flow issues
MYOB has led the charge to establish a prompt payment protocol, to counter the cash-flow burden impacting many Australian small businesses. The Business Council of Australia announced the Australian Agency Supplier Code last week, which asks companies to pay small business suppliers within 30 days of receiving an invoice. Not only is MYOB a founding signatory, the company committed to prompt payments a month before it was officially announced.
“The launch of the code is a big step forward in establishing an equal and fair playing field, helping SMEs avoid the ongoing chase of overdue invoices. The BCA believes trade between small, medium and large businesses valued at $520 billion a year. It is a huge part of GDP, which underscores the importance improvements in timely payments could have to the economy.
“By supporting this code, both as a partner and actively abiding by it, MYOB seeks to ensure a vibrant SME community within Australia, which we know helps not only small business, but big business and the community at large,” Mr. Reed said.
Small business: the heartbeat of Aussie communities
The report found that 90 per cent of owners agree that small business is an important part of their local community.
“It's why MYOB is dedicated to supporting business success, because we believe that SMEs are vital to the fabric of Australian communities,” Mr. Reed said.
For further comment or other information please contact:
Sean Rogasch, Media Relations Consultant, MYOB
M: 61 400 069 951/ E: firstname.lastname@example.org
Georgia Colahan, Ogilvy PR
P: 02 8437 5384 / M: 0432 882 080 / E: Georgia.Colahan@ogilvy.com.au
MYOB Group Ltd (ASX: MYO) is a leading cloud based business management solutions provider. It makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly in cloud computing solutions, and in 2015 was awarded the BRW award for the most innovative large company for 500+ employees and placed 2nd in BRW’s Most Innovative Companies Award list across all categories nationally. For more information, visit http://investors.myob.com.au/Investors or follow @MYOB on Twitter.
About the MYOB SME Snapshot
First carried out in July 2015, the MYOB Snapshot is a monthly online survey of a section of MYOB’s 1.2 million customers. The survey provides the opportunity to quiz SMEs about topical issues and their responses to business conditions.