Off and running
As 30 June approaches it’s crucial to shift our focus to preparing for the new financial year. While tax planning is essential, it’s equally important to invest in strategies that will contribute to your ongoing success.
One critical element is attracting and retaining key staff. Identifying and holding onto the right team in a competitive job market can be challenging. Yet it’s crucial for the success of any business. Here are some best practices to consider:
Competitive Pay: Ensure that your staff members are fairly compensated based on industry standards and their level of expertise. Regularly review salaries and consider performance-based incentives to motivate and reward your employees.
Professional Development Opportunities: Invest in your employees’ growth by offering opportunities for ongoing training and professional development. This demonstrates your commitment to their success and helps them acquire new skills to contribute to your business’s growth.
Positive Work Environment: Foster a positive work culture that promotes open communication, collaboration, and work-life balance. Create a supportive environment where employees feel valued, recognised, and motivated to contribute their best.
Leveraging Study Benefits: One effective way to engage and retain key staff members is by offering study benefits. Providing financial support for their education and professional development demonstrates your commitment to their long-term success. Here’s how you can implement study benefits effectively:
(i) Identify Relevant Study Areas: Discuss with your employees their career goals and areas where additional education or training would benefit both them and your business. This could include courses related to their current role, leadership development, or specialised skills.
(ii) Financial Support: Determine the level of financial support you can offer, such as paying for or reimbursing the cost of study materials and tuition fees etc. Clearly communicate your study benefits policy and any conditions associated with it. Normally the payment of study costs is linked to a retention clause whereby employees may be called upon to pay back these costs should they leave the company within a defined period.
(iii) Flexible Study Arrangements: Allow employees to balance work and study commitments by offering flexible working arrangements or adjusted schedules. This demonstrates your understanding of their needs and supports their pursuit of further education.
Separately it’s important to engage with your accountant regarding tax planning. One element to consider is the advantages of pre-paying expenses before 30 June, such as marketing or borrowing costs. The benefits for your business, include:
Tax Deductions: By pre-paying expenses before 30 June, you may be able to claim a tax deduction in the current financial year. Consult with your accountant or tax advisor to ensure you are eligible for these deductions before making payment.
Improved Cash Flow Management: Pre-paying expenses allows you to manage your cash flow more effectively. By allocating funds in advance, you can better plan for upcoming expenses and ensure that your business has sufficient working capital.
Strategic Planning: Pre-paying expenses gives you a head start in the new financial year. By investing in marketing initiatives or other essential expenses early on, you can position your business for growth and attract new clients and opportunities. For example, does your website, SEO, printed materials, and/or business photography need to be updated?
By implementing positive actions for staff engagement and tax planning you can set yourself up for success in the new financial year. Remember, attracting and retaining key staff members is essential for driving growth and productivity. Some actions such as a great culture cost very little yet have a huge impact. Others such as study benefits, require more investment and flexibility, however they drive superior outcomes for staff engagement and retention.
Finally, consider taking advantage of tax planning opportunities, with the assistance of your accountant, to position your business for a prosperous year ahead. As always, the time spent in planning ahead will be richly rewarded.
Article credit: Sloan Wilkins – Executive Financial Coaching