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  • How Small Businesses Should Prepare for the Beginning of the Financial Year (BOFY)

How Small Businesses Should Prepare for the Beginning of the Financial Year (BOFY)

It’s the beginning of FY25, set your business up for success with the ultimate guide to start-of-the-financial-year prep for small business owners!

First published on Wednesday, Jun 26, 2024

Last updated on Wednesday, Jun 26, 2024

5 min read

It’s a busy time of year for Australian businesses of all sizes.

A brand-new financial year is starting up and businesses have their work cut out for them planning their admin, compliance, documentation, and so much more. Not sure where to start? Don’t worry, we’re here to help.

Here are four things you need to keep in mind as you plan out the fiscal year 2025 (FY25).

1. Review your legal obligations

In the past 12 months, we’ve seen more than our fair share of employment relations changes. And many of the changes introduced (including Closing Loopholes laws and the new National Minimum Wage) are coming into effect in the new fiscal year.

So, when preparing for the new financial year, make sure you’re keeping your legal obligations in mind.

Legal updates may affect your business in various ways. Sometimes it means an update to your documentation, while at other times you may need to dive into the details to make sure your operations are compliant with the law.

It’s advisable to prepare for another year full of employment relations changes. And the best way to do that is by making sure you have a reliable source informing you about relevant legal changes.

Lucky for you, our team of specialists have put together an essential guide, simply click here to download your guide to What’s changing with Closing Loopholes 2024.

2. Update your records

Record-keeping is an important part of your legal obligations. For example, the Fair Work Act requires Australian businesses to keep employee records for seven years. Plus, there are regulations in place for the quality of stored records and how accessible they must be.

Maintaining best practices for maintaining, updating, and storing accurate records is the best way to ensure you can keep up with your legal obligations as your business grows.

If something does go wrong, it’s also the best way to prove you did the right thing and protect your business and yourself as the business owner.

Investing in a document storage solution that helps you make the most of your information while meeting regulations is invaluable.

Unlimited, cloud-based document storage, for example, can help business owners access their data whenever and wherever they need it thanks to the central storage.

Starting FY25 armed with the right storage solution can help you stay organised throughout the year.

3. Get ready for tax time

While we’re on the subject of accurate record-keeping, the end of a financial year means tax time.

Having an accurate record of your expenses and finances helps you not just meet your legal obligations, but also maximise your savings come tax time. Many small businesses choose to manage their staff expenses manually with paper receipts and hours sunk into admin tasks. But this choice will end up costing you.

All BrightHR clients have access to PoP, a staff expense and mileage tracking app, that has helped our customers put aside $4,037 in tax savings. Just by simplifying and streamlining the process of managing and storing expenses.

Plus, the new Federal Budget was handed down on May 14, 2024, and included several measures to support small businesses. It included asset write-offs and electricity bill relief among other things, so making sure you’re taking advantage of all these concessions by examining these measures more closely is key.

Read our blog post on Everything SME owners need to know about the Federal Budget to get you started.

4. Streamline your processes

If you’ve noticed drops in performance or inefficiencies in your business, the start of a new financial year is a good time to identify and resolve these pain points.

This is especially valuable for small businesses that don’t possess the same resources as larger businesses to draw from.

Streamlining your processes may seem like a vague goal, but it should serve as a reminder to continuously assess and improve your operations. Custom reporting tools can help you stay on top of valuable data and information without spending hours trying to make sense of it.

Digitalising your processes from end to end with tools like HR software and health & safety software that’s supported by a team of experienced advisers can help you set your business and your team up for success in FY25.

Need more support starting the new financial year off right?

BrightAdvice offers a 24/7 employment relations phone line, so you can receive jargon-free, practical advice whenever you need it.

Learn more about how to build a better business with the right software and tools by your side by booking a free consultation with BrightHR experts. They’re specialists in helping Australian SMEs lower their risks and future-proof their operations.

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