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7 Questions You Need to Ask your Advisor this Tax Time

questions you need to ask your advisor this tax time

The end of the financial year (EOFY) is not all about tax – it is a perfect opportunity to look back at the year and look forward to improvements for the next financial year.

Small business owners frequently have a lot of questions for us advisors during this time. But sometimes it can be difficult to know what to ask or even how to approach it. In the run-up to the EOFY, we’ve summarised what you need to ask your tax advisor this tax time.

Take what you need from this list for this tax season and the upcoming months, all in an effort to position yourself for a successful year ahead.

1. “How is this financial year different from the previous years?”

Change has been the new standard for many small businesses since COVID started. But unlike last EOFY, nobody is concentrating just on COVID-19. Rather, several international and local issues are also taking over the news. Talking to your advisor about how these events affect the economy and, consequently, your business is a good idea. Just remember to maintain a balanced viewpoint; your advisor will probably reassure you that possibilities for growth, creativity, and connection can be found amidst the chaos.

2. “When reviewing my numbers, what will you be on the lookout for?”

We check for outliers every EOFY. These might include funding you’ve received to support COVID-19 or expenses related to business transformation in FY2022.

3. “What can I improve in the next financial year?”

The challenges of the last several years may have made you more financially astute, and EOFY is the ideal opportunity to act on that newly discovered confidence. Discuss with your advisor how they might assist you in getting better in FY23.

4. “I want to grow my business, can you help me?”

Even though the path to recovery is still rocky, many small firms are considering how to thrive rather than just survive in this new environment; and that means growth for certain people. But from an advisor’s perspective, the question is: Can you afford to expand in FY23? Tell them what you hope to accomplish during the next 12 months. They will assist you in determining whether you can finance your growth goals on your own or what outside funding opportunities, like a grant, loan, or investment round, may be available.

5. “Should I spend my money on technology and training?”

New tax credits for small firms investing in computer and digital skills training were proposed earlier this year. Firstly, it should be noted that legislation enacting these initiatives has not yet been passed. Second, you might have to wait until the end of FY23 to file your deductions if the measures are passed.

The appropriate advice from your advisor can make investing in IT and digital skills training beneficial (regardless of tax deductions). But before pulling out your wallet, you should proceed with caution as with all other purchases.

6. I’m struggling to find staff members, what should I do?

Recruiting new team members proves to be difficult at the moment. You need to always be alert and give them something unique, like training opportunities. You’ll have a better chance of recruiting (and keeping) employees than most if you can create a pipeline of people with potential and are ready to invest in their upskilling.

7. I can prepare my own tax return myself, right?

In addition to the dangers of completing a tax return without expert advice, it’s important to remember that advisors may provide so much more value than just numbers. You’re not getting the most out of the relationship if you only communicate with them once a year. Therefore, I urge you to lean in and learn more about their services.

Every question you ask your adviser during EOFY (or any other time of the year, for that matter) is an opportunity to develop trust and a better business. After all, the purpose of us advisors is to offer advice, so make sure to get the most out of it.

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