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How SMEs can prepare for the New Year

Updated: Feb 21, 2022

Starting 2020 on a good foot could be as easy as placing a careful and well prepared final step in 2019. Have you added an end of year plan for your business into your to-do list?

1. Get your EOFY accounts lodged

As the year draws to a close the ATO are busy processing Australia’s 2019 tax returns. 

If you’re an unincorporated sole trader, or a member of a partnership, you should have lodged your 2019 personal tax return, including your business income, by 31 October 2019.

Companies and sole traders, or partners lodging through a tax agent, have a little more time up their sleeves, since their due date is only 28 February 2020. 

But don’t take the shine off your summer holidays by having to rush through your tax return as soon as you get back. Lodge it now, and then relax. Your business will be ready for the year ahead and if you need to make an early application for finance to fund your business plans for 2020, you won’t face the possibility of rejection because your latest financials are not available.

2. Get financially secure

The end of the year can bring an abundance of joy and expenses. If your business needs a financial leg up, there are options. Your broker can provide you with a number of ways to keep operations running smoothly, such as a business term loan, a business line of credit, invoice financing and more. These funds can be used for everything, from giving your office a new look for the New Year, or investing in much needed equipment to keep things up to date in 2020.

3. Prepare your financial applications

If you are looking to apply for a loan in the New Year, you’ll want to have all the necessary paperwork ready to go. Here are a few things you may want to have ready, in order to speed up the process:

- Proof of a good credit history

- Proof of regular savings deposits

- Proof of not having overdrawn any accounts in recent years

4. Look back and look ahead

It’s a time-honoured custom to think about the past and the future as one year draws to a close and the next one beckons. At the end of the calendar year you’re half way through the financial year and even if your accounts aren’t quite up to date, your gut feeling will tell you whether it’s shaping up to be what you’d hoped for.

Take some time to review how your operations have progressed since this time last year:

- Are you ready to make some significant changes in order to achieve your goals?

- Do you need to make an urgent application for finance to facilitate this? (See Item 1 on the list.)

By taking proper measures, you can make 2020 a prosperous year for your business.

Original post by Bank of Queensland



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