Are you burning the midnight oil this EOFY?
As consumers enjoy EOFY sales, business owners 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 percent of SME business owners have sacrificed their weekends and 23 percent have worked past midnight in the lead-up to EOFY.
“Small business owners are already under pressure to meet sales targets, retain customers and make sure cash flow is steady for their business,” said MYOB CEO, Tim Reed.
“These everyday 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 percent of SMEs were planning to complete their tax themselves, up from 36 percent 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,” said Reed.
“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 percent of SME business owners planning to use the newly legislated $20,000 asset tax write-off this financial year.
Additionally, 63 percent of small business owners are positive about the decision to reduce company tax rates with 44 percent 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,” said Reed.
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,” said Reed. “The BCA believes trade between small, medium and large businesses is valued at $520 billion a year. It’s 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.”
Small business: the heartbeat of Aussie communities
The report found that 90 percent 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,” said Reed.
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.