Here, the AVA Advisory team shares helpful insights and advice to set small and medium business owners on the right path for the 2025 financial year.
Review and update business plans
Revisiting and updating business plans is crucial to ensure organisational strategies remain aligned with business objectives, especially as market conditions evolve and consumer spending fluctuates.
Assessing industry trends, target audiences and competitive landscapes can help inform the necessary adjustments to financial projections, marketing plans and operational processes.
Establish clear financial goals
Setting “Specific, Measurable, Attainable, Relevant and Time-bound (SMART) goals is key to driving revenue growth, profitability and effective cash flow management.
Through tailored solutions and comprehensive strategies, our experienced team of corporate restructuring and insolvency specialists work closely with clients to establish and achieve realistic financial targets.
Optimise tax planning
Proactive tax planning is essential for minimising tax liabilities and making sound business decisions.
Consulting with the right business advisors and tax professionals who understand the ins and outs of your business – at the start of the financial year – can help identify opportunities for deductions, incentives and tax-effective structures.
Avoid ATO penalties and charges
Be sure to budget ahead and schedule tax lodgements and payments.
If you do not make tax lodgements on time, the Australian Tax Office (ATO) applies a Failure to Lodge on Time (FTL) Penalty.
Further, if you miss tax payments or pay late, the ATO adds an automatic General Interest Charge (GIC) on the amount owed that accrues until the tax debt is paid. The GIC rate for July – September 2024 is 11.36 percent.
In some circumstances, the Shortfall Interest Charge (SIC) is applied, such as when a business’ tax assessment is amended, resulting in increased tax liability. Like the GIC, the SIC rate is updated quarterly and is currently 7.36 percent.
Invest in technology and automation
Investing in technology and automation can streamline processes, increase efficiencies and reduce costs.
Evaluating current technology stacks and implementing cloud-based software solutions for accounting, CRM and project management allows businesses to focus on core activities.
Cultivate a strong company culture
A positive company culture is the foundation for long-term success. Investing in employee well-being and professional development can lead to increased engagement, productivity and loyalty. It’s something we as a firm truly believe in – living and breathing our company values every single day.
AVA Advisory provides guidance on implementing effective employee engagement strategies and fostering a positive work environment that drives innovation, collaboration and growth.
Embrace adaptability and resilience
Adaptability and resilience are essential qualities for navigating the ever-changing business landscape.
Regularly assessing operations, scenario planning risks and opportunities, as well as cultivating a mindset of continuous learning are key to innovation and sustainable, long-term growth.
In the current climate of disruption, frequently testing your business model and being prepared to pivot on products will help to eliminate uncertainties and maintain brand relevance.
Don’t wait until it's too late
If your business is showing signs of financial distress, take decisive action and seek professional financial help. The ATO is taking a strong stance on debt collection, and the onus is on businesses to be informed and meet obligations.
Our team at AVA Advisory are committed to helping business owners regain control of their enterprises and emerge in a significantly improved position – but the more time we have, the more solutions we have available.
By focusing on strategic planning, financial goal setting, tax optimisation, technology adoption, company culture and resilience, businesses can position themselves for growth and profitability in the new financial year.
How we can help
AVA Advisory provides expert guidance and support to help small business owners and directors set their businesses up for success in FY24-25 and beyond.
