The conversation you should have with your accountant before 30 June (but probably won’t)

By Angus Emery - blueprint4

For many small business owners, June tends to arrive with the same familiar feeling. A bit of panic. A few rushed purchases. Some last-minute emails to the accountant. Maybe a conversation about deductions, super payments or whether now is the right time to buy that vehicle.

Then the financial year ends, everyone exhales, and before you know it, Christmas has rolled around and you’re wondering why your tax returns still haven’t been completed. For a surprising number of business owners, that's the extent of the relationship with their accountant. The problem is that good accounting advice was never supposed to work that way.

Tax planning isn't the same as business advice

Most business owners assume that if their tax returns are lodged correctly and their BAS is submitted on time, things are probably under control and while technically they are, compliance and strategy are two very different things.

Lodging reports tells you what has already happened. Good advisory conversations help shape what happens next.

The businesses that tend to feel more financially stable and in control are usually the ones having proactive conversations before the end of the financial year, not after it. This is not because they're trying to avoid tax altogether - but because they’re chasing clarity:

• What is the tax bill likely to be?

• What strategies can we take to reduce it and are we prepared for it?

• Are we structured properly?

• Is cash flow healthy?

• Are margins where they should be?

• Is the business supporting the owner's long-term goals?

Those are far more pressing and vital questions than “what can I claim?”

The conversation most business owners actually need

A good pre-30 June conversation shouldn't feel like a rushed checklist. It should feel like someone sitting beside you looking at the bigger picture.

That conversation might include:

• What profit is likely to look like by year-end

• Whether you have upcoming tax obligations that you haven't prepared for

• Whether your current structure is still the most viable structure

• The key areas of opportunity for improving cash flow and profitability

• What the next 12 months looks like for the business

Importantly, it should leave you feeling clearer, not more confused.

A few questions worth asking your accountant

If you're not sure whether you're getting proactive advice or simply compliance support, here are a few useful questions to ask before 30 June.

“What should I be preparing for over the next 12 months?”

A good accountant should be able to talk beyond the immediate tax return and help you understand upcoming obligations, risks and opportunities.

“Is my business structure still the right fit?”

The structure that was most effective when you started may no longer be the best structure - revenue, expenditure, your asset portfolio and legislation among other factors are regularly shifting as time goes by.

“What are you seeing in my numbers that concerns you?”

This is an important one. Your financial reports tell a story. A proactive accountant should be able to identify pressure points early, whether that's margins, cash flow, debt, payroll or profitability.

“If you were in my position, what would you focus on next?”

This question often reveals the difference between someone processing paperwork and someone genuinely thinking strategically about your business.

Why this matters more than ever

We work with a number of business owners who are incredibly good at what they do, but are carrying underlying uncertainty, often because they're inundated with the work that’s involved in running the business day-to-day, which doesn’t allow them to step back and properly interpret what the numbers are telling them.

That's where a good advisory relationship becomes incredibly valuable. Not just at tax time, but throughout the year.

Most small business owners need someone who can explain what's happening, what matters, what doesn't, and what decisions are worth making now rather than six months too late - before 30 June becomes another rushed deadline.

The lead-up to 30 June is one of the few natural moments during the year where business owners pause and look at the bigger picture. We think it’s worth using that opportunity to your advantage. Not just to minimise tax, but to understand whether the business is actually moving in the direction you want it to.

Because a strong client-adviser relationship shouldn't begin and end with compliance. It should help you make better business decisions with more confidence - in a bid to generate lifestyle choice and financial freedom, for you - the business owner.

That's what we're here for - get in touch today to book a tax planning session with your adviser.

And finally, if someone important to you has expressed frustration with the relationship that they hold with their accountant - point them in the direction of us - a fellow small business that prides itself on proactivity and prioritising these crucial strategic conversations.

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Angus Emery is a Senior Accountant at blueprint4, a small to medium business accounting and advisory firm based in Warragul. blueprint4 works with business owners across Gippsland and South East Melbourne.