SMEs are being encouraged to start end of financial year paperwork now
Small to medium business owners are being encouraged to start their end of financial year paperwork now to avoid a last minute rush.
While one third of SMEs are making inroads into their financial reporting obligations by getting organised early, those who leave their end of financial year obligations to the last minute will likely sacrifice social commitments, weekends and evenings.
The latest research by accounting software provider MYOB reveals nearly one third of SMEs have worked weekends to meet their end of financial year obligations in the past (31 per cent).
Twenty per cent worked beyond midnight and 14 per cent turned down an invitation to catch up with friends
Almost one third of SMEs start preparing their paperwork at least one month before June 30 (31 per cent), and a further 23 per cent get moving in the weeks prior to June 30.
Conversely, 18 per cent wait until up to a month after EOFY to begin preparing their paperwork and a further 21 per cent don’t start until one month or more after the financial year ends.
MYOB Chief Executive Office Tim Reed recommends business operators avoid crunch time by starting to prepare now and spending time with their accountant or bookkeeper to bring in a happier new financial year.
“It’s tempting to put the books on the backburner, however lack of preparation is often the reason why June 30 fills business owners and their loved ones with dread,” he says.
“Paperwork that’s well organised means fewer ongoing tax time tangles for you, your employees and your loved ones.
“It frees up your time, so you can focus on growing your business and doing what you love.”