On one hand, end of financial year (EOFY) can be the perfect time to cash in on great promotions and discounts across all kind of materials, equipment and more for your business – including car sales. This may be of particular interest if your pest or building services company needs new electrical equipment, office furniture, or even a new vehicle.
On the other hand, it’s also a valuable time to take stock of how successful you’ve been with your business this year. Have there been any strategic wins or windfalls? Any larger than expected shortfalls or surprise roadblocks? If so, why? It’s important to examine how you achieved your goals and how any challenges arose, to decide how best to drive forward for success in the new financial year.
In the first instance, June is the perfect time to take stock of your operations and decide what EOFY sales to capitalise on for investing in things you need to reinforce your business for growth. That is, if you have the funds to do so and could do with the tax benefits within this financial year.
In the second instance, it’s an important period to strategise for ensuring your pest or building inspection business grows from strength to strength over subsequent financial years. Now’s the time to plan for the short term, mid-term and long term.
In this article, Rapid Solutions outlines five tips to achieve these goals.
Cash in on EOFY car sales and the tax write-off incentive
If you’ve been holding out on getting a new business vehicle, June is a good time to make that purchase. Cashing in on EOFY car sales could mean a new vehicle with a significantly reduced price tag.
EOFY car sales means bargains galore
Typically, monthly car sales volumes are about 30% higher in June than any other month. Why? It’s mostly about targets. Most manufacturers and dealers are eager to reach their financial year sales goals, so often drop the prices on vehicles to encourage greater sales. And buyers come running for it.
Plus, car manufacturers often do a stock take before EOFY to measure their performance against their network’s sales, revenue, and profit targets. If they’re not seeing the desired results, they might offer dealers wholesale discounts as an incentive to sell excess stock. They want to start with a clean slate for the new financial year.
All this means lots of dealership EOFY car sales with deals on brand new cars and used cars alike.
On top of this, there are often some great bonuses thrown in to sweeten the deal. These can include free modifications or accessories – great if you’d have to pay for these down the line anyway. They might also include things like free compulsory third party insurance (green slip), registration costs, stamp duty and more. You could score more attractive finance options, too.
Tax incentive time
Importantly, time is running out for a significant tax write-off incentive for Australian business owners. The current instant asset write-off and temporary full expensing measures won’t be extended beyond 30 June 2023. If you’re looking to take advantage of this through a vehicle purchase then time is running out. Just another reason to cash in on EOFY car sales.
Before you make any moves, research the market carefully and decide whether you’re really scoring a bargain or just getting caught up in the EOFY car sales hype. Here’s a great article to read then ponder: 5 Traps to Avoid When Buying a Car for Business Before EOFY.
Also read about different types of business car finance options and car theft prevention while you’re looking into it.
Get your EOFY tax deductions and concessions
A key EOFY activity is claiming business tax deductions to get back your fair share of what you’ve spent running and building your operations over the year. This may seem like an arduous task, and often it is, but you’re doing it because it benefits your business. It’s also vital to report your business earnings, income and so on to the Australian Tax Office.
If you’re registered as a sole trader then you can lodge your own tax return online with myTax (but you must keep an eye on the deadline)! myTax is a great tool that gives you lots of control over your taxes because you can really keep track of everything on your phone. You just download the app and get going.
If you don’t lodge your tax return yourself, the other option is to hire a registered tax agent to do it for you. Just be sure they’re registered on the TPB register.
Read more on tax deductions for your business and find out why taking cash in hand is a big no-no.
Review your business and marketing strategies
EOFY is time to take stock of your cash flow and business activities. Check in on your progress in achieving key performance indicators. Are your strategies working or do they need tweaking? Perhaps they need a complete revisit.
If you’ve been roller coasting along and getting the work done without having a business plan in place, including a marketing strategy and implementing effective business systems and processes, then it’s time to get this happening. Even born business leaders need a game plan. There’s only upside to taking the time to focus on how to achieve the goals you’re aiming for. You’ll very likely see positive financial returns by doing so.
If you don’t, it’s a bit like travelling without a map. You have an idea of how to reach the destination but you mightn’t understand where you’ve been or what’s the next stop along the way. Your business could easily get side-tracked because you got distracted or don’t know the right road to take. Then you end up somewhere completely different.
Consider aspects of business planning such as marketing and sales, recruitment and employee retention, customer communication and complaint handling, business reporting, training and upskilling, and more.
Here are some great guides to get you started or even closer to where you want to be:
EOFY is time to check your insurance
It’s also clever to check your professional indemnity insurance and general liability insurance during the EOFY period. Make sure your cover is up to date with your current business situation (e.g. is it time for insurance endorsements?) and that all your details are still correct. If you’ve moved your pest or building inspection business to new premises, for example, you need to let your insurer know. Updates like these help keep your insurance policies appropriate and active.
If you’ve decided to go ahead and cash in on EOFY car sales, then you’re in luck! Rapid Solutions offers business vehicle insurance too.
Also read the Rapid Solutions best business checklist for the new year to cover your bases and find out why you need runoff insurance.
Because your business insurance is about having safeguards in place in case of complaints and claims, EOFY is a good time to relook at how to manage these well.
Read the following articles to guide you:
- Lessons to help yourself avoid customer complaints
- Tips for managing customer complaints
- Impact of real life termite management insurance claim
- How to avoid a claim in termite management
- Subcontractors and insurance
- Building inspection claims
- Pre-purchase inspections claims
Don’t have business insurance yet? Discover how much building inspection or pest control insurance costs and whether your business needs it. Then contact Rapid Solutions today to get your business covered properly or to renew or update your policies.
