A year in business

Regular business and tax reporting

When running a business, it’s important to regularly keep track of how your business is going. As a business owner, there are a variety of financial reports and statements you can use to track your business. These reports can help you to:

• keep track of your business finances
• make business decisions
• set goals for your business
• apply for finance for your business (such as approaching an investor or a bank for a loan).

To help you get started, learn how to create a budget using our free financial templates.

Tip: Most businesses will also need to lodge business activity statements (BAS) every month or quarter for tax purposes.

Did you know?

If your business is a company, you will be sent an annual statement to complete around the anniversary of the date you registered your company.

End of Financial Year (EOFY) reporting

There are a number of reports and tasks you can complete at the end of your financial year (30 June, for most businesses) for reporting and tax purposes. These reports and tasks are useful to track how your business is going year by year, and include:

• summarising your income and expenses in a profit and loss statement
• conducting a stocktake
• summarising your record of debtors and creditors
• pulling together any records of asset purchases or money you spent on improvements to your existing assets over the year, so you can calculate depreciation expenses to claim for capital gains tax purposes
• completing and lodging your income tax return to report your business income and claim deduction
  • Tip: to avoid delays in processing your return, make sure you use the correct Business industry code – see the Australian Taxation Office (ATO) Business industry code tool
• pay super contributions for your employees and send the data electronically – read SuperStream for more information about reporting and paying super electronically
• lodging other yearly reports or returns, such as PAYG withholding, fringe benefits tax (FBT), Goods and Services Tax (GST), and the taxable payments reporting system.

Did you know?

If you operate a business as a sole trader, you need to lodge a tax return including the supplementary section – business and professional items schedule for individuals – regardless of your income.

Find out more

• Find out more about essential tasks at end of financial year (EOFY).
• Find out what reports and returns to lodge with the ATO.
• Check out our information on income and deductions and business activity statements.

Growing your business

As a business owner, it’s important to plan for your business’s future, including ways to grow your business. The coronavirus (COVID-19) has impacted the growth opportunities for many businesses, so finding ways to grow your business will help keep it going, for example:

• creating or offering new products
• using new business processes to make you more efficient or save costs
• entering new markets and expanding your customer reach.

It’s important to update your business plan as your business goals change. This will help you to grow in a way that is sustainable for your business, taking into account the resources you have and what opportunities are best for your business.

Find out more

• Have a look at the South Australian Department of State Growth’s information on Growing your business.
• Check out our Growing a business checklist, which takes you through the different methods and issues you should consider when growing your business.

Advertising your business

Advertising can help you to reach a larger audience and attract more customers to your business. There are a number of ways to advertise your business, including through:

• having your own business website – provides a way for people to reach your business and details in their own time and location. You may even be able to set it up so you can sell your goods or services directly from your website
• social media – engage with your customers and advertise your business by sharing your messages with your audience online
• email newsletters or blogs – regularly create content related to your business to keep your audience engaged. If using an email newsletter, it’s important that you get permission before you send emails to people
• newspapers and magazines – have a print advertisement or list your services within the classifieds
• television – advertising on television can be costly, but can help you reach a large audience
• radio – similar to advertising on television, though the cost is usually less and the audience reach is more localised
• mail – dropping advertisements in mailboxes can be a simple cost effective way to reach your local area
• phone books and directories – have your business listed on various business directories so you can be found by potential customers when they’re looking for a service.

When choosing the best way to advertise your business, consider the audience you are trying to reach, as well as the costs involved. You don’t have to spend a lot of money to advertise and promote your brand, so choose what is likely to be the most effective for your business.

Find out more

• Check out our advertising page for more information on advertising your business.
• Read more about Ways to advertise your business on the Business Victoria website.
• Not sure where to start? Here are some tips and tools to help you develop a marketing strategy.
• Read about some things to consider before you promote your business.

Read about marketing your business during COVID-19 and how to keep your customers loyal during the pandemic.

Saving money on energy costs

Reviewing the energy usage in your business is a great way to help you save on costs. While it seems like a necessary expense, you can often find ways to save through:

• understanding how energy is being used in your business and where you can reduce your usage
• reviewing your contract and searching or negotiating for better deals
• upgrading to more energy efficient equipment – while this may be a big cost upfront, it may save you money in the long run.

Being environmentally conscious in your business can also boost your business and brand reputation to the public.

Find out more about environmental management in your business.

If your business is struggling with energy bills due to COVID-19, find out what help you can get with your energy bills.

Planning for exiting your business

Even though you may not want to think about selling or closing your business, it’s important to plan properly for when and if you do.

There can be many reasons why you decide to exit your business, including:

• your business is no longer viable to keep running
• you are looking to retire or pursue other opportunities in life and no longer want to run your business
• you have achieved your business goals and are ready to close or pass the business on
• your business is forced to close as it has become insolvent.

Whatever your circumstances are for exiting, planning your exit ahead of time will help make what can be a difficult and emotional process easier.

Watch the journey of selling or closing a small business video series for help through the process of exiting your business.

Tip: If you are selling or closing your business you should cancel your ABN.

Did you know?

You can call the ATO if you sell or close your business, to find out if you need to finalise any GST, employee, contractor or other obligations, and what records you need to keep.

Find out more

• Read about the important things to consider when deciding whether to sell or close your business.
• Find information on tax issues to consider when changing, selling or closing your business on the ATO website.
• Check out these suggested steps to guide you through the process of closing your business or selling your business.
• Find out more about closing your company and cancelling your business name with the Australian Securities & Investments Commission (ASIC).