Financial management

Leave old tax return habits in the past and level up EOFY efficiency  

- June 4, 2024 3 MIN READ
tradie looking at paperwork

 

For many small trades businesses, the end of the financial year (EOFY) tax return process is a nightmare. Pushing paperwork to the side for “later” always results in a frantic scramble as June 30 approaches. This habit of postponing is typical among tradies—but it’s got to stop, writes Dan Pollard, founder, Fergus.

According to research from Fergus, many tradies are still stuck in the dark ages. Nearly half (49 per cent) haven’t adopted job management software and a whopping 43 per cent still rely on manual paperwork and spreadsheets. This stubborn attachment to outdated methods is exactly why tradies find themselves in a bind during tax season. Sticking to these inefficient practices makes tax preparation more painful and time-consuming than it needs to be.

Tradie business owners can avoid late nights and stressful searches for lost paperwork by embracing technology, like job management software, before the new financial year kicks off. Job management platforms can do a lot of the heavy lifting and make tax time much less stressful by ensuring transactions are systematically recorded and organised from the start. This can save tradies their sanity and streamline the EOFY process.

With July 1 just around the corner and new incentives announced from the 2024-25 Federal Budget, now is the perfect time to embrace the latest technology and avoid the EOFY scramble. The Federal Budget has introduced initiatives to support small businesses, including a $10.8 million investment in mental health programs for small business owners, direct energy bill relief, an extension of the $20,000 instant asset write-off, and $290 million in cash flow support. There’s no excuse not to take advantage of these benefits and make the annual tax return scramble a thing of the past.

Here’s how job management software can save your business:

Ditch the paperwork nightmare 

Paperwork is a bloody nightmare, especially when it piles up. But with job management software, you can kiss those headaches goodbye. Forget those boxes marked “receipts” and “invoices.” This software tracks everything—your quotes, invoices, and supplier invoices. Come EOFY, there’s no need to scramble through filing cabinets or the truck’s glove box. All the documents and transaction records needed will be neatly organised and easily accessible online.

Get your finances in order

Keeping track of finances is crucial, and it’s even better when it’s hassle-free. The integration between job management software and accounting systems like Xero means your financial data is always up to date. When an invoice is updated in the software, it instantly reflects in Xero, providing a clear, real-time view of the business’s financial standing. This feature offers quick access to vital financial summaries, from what’s owed to the details of all invoices. It’s about ensuring you have a complete and clear picture of your business finances, without the extra legwork.

Track every job down to the last detail 

Ignoring your finances makes tax time harder than it needs to be. Understanding the importance of real-time updates when an invoice is modified in the job management software is how to set yourself up for success. This feature delivers instant access to critical financial summaries, from outstanding balances to detailed invoice information.

EOFY doesn’t have to be a nightmare if everything’s set up right. Don’t get caught in the next EOFY rush. Moving to a digital management platform, and even better if it’s one designed for tradies, not only means ditching the box of paperwork, but it also simplifies the process of storing key information for tax returns.

But the key is to get your business organised before July 1 so when the next EOFY happens you’re entirely ready to go.


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