June 30. Such a monumental date for business’ here in Australia as it brings to a close the end of the financial year. Why is the business year different to that of our usual calendar year? Good question!
A fiscal year (or financial year, or sometimes budget year) is a period used for calculating annual (“yearly”) financial statements in businesses and other organizations all over the world. In many jurisdictions, regulatory laws regarding accounting and taxation require such reports once per twelve months, but do not require that the period reported on constitutes a calendar year (that is, 1 January to 31 December). Fiscal years vary between businesses and countries. The “fiscal year” may also refer to the year used for income tax reporting.
The NFL uses the term, “league year,” which in effect forms the league’s fiscal year. By rule, the fiscal year begins at 4 PM EDT on 10 March of each calendar year. All financial reports are based on each fiscal year. However, the fiscal year is denoted in the NFL by the year where it starts, not where it ends, unlike most designations. I dare expect that other sporting codes and industries who’s business and trade period is based on “seasonal” activity have something similar in place.
Month end for any business is a busy time- stock taking, reporting, payment processing as well as tax reporting periods and well a tonne of forecasting and planning is at play. From a business stand point, behind closed doors there is a lot of number crunching going on. Depending on the structure and set up of your employee’s too, there are group certificates to lodge, dealings with the ATO and processing and submitting your returns! If you’re someone that has the luxury of having only to lodge your tax return, from one employer happy days!
I was always a gun at doing my returns and would always get a sizeable return. Most of that would go to a holiday or as my Mum would always suggest – When you get your tax return back, go stock up on all the socks, underwear and bras you need and clean out what’s no longer required. Spend on your essentials, spend some and save the rest. I still stick to the stocking up of the undies, but my sizeable returns would contribute to my what I like to call walking art installations aka a new tattoo on the canvas that is me!
If you’re interacting with business at the moment or accounts departments specifically a few friendly hints and reminders which might make you less hated by them lol.
- Group certificates will be issued to you when they’re ready. Your asking continually everyone when you’ll get them, will just piss people off. Chill.. You’ll get them sure enough and the company has 2 weeks to provide them to you.
- You probably say it every year but keep your receipts and have everything ready to go and organised and labeled throughout the year. Either that way when you go to access or provide to your accountant then they’re easy to find and it will make for quicker lodging.
- Having end of EOFY activity and sales is a great way to get people to spend, but if you’ve noticed that this year things are down a little, that’s a huge and common thing due to us in Australia having a Federal Election 3 days later. When there is an election, there is uncertainty and people tend to hold on and change their spending habits
- Do be mindful that there is a lot happening behind closed doors, so that if something is a matter of urgency say so. People aren’t mind readers.
- July is a great and fresh opportunity to get a jump on things, start looking at your advertising and marketing strategies and budgets for the coming and “new” part of the year now. Make calculated and structured plans to really hit the ground running.
I really don’t mind this time of the year. It’s busy, there is lots going on and we’ve a good set of stats and data to review and learn from and compare Y.T.D to then formulate a solid strategy and plan moving forward.
Embrace both the positive and negative of what has gone down. Look back and learn from it and use this information to move into a fresh strong fiscal year with an an arsenal of knowledge behind you to hit the ground running!
Take your team out for a few drinks, and create a few last minute deductions for your accountant!
Go forth friends and kick some serious goals!
Chrissy