How to invest your end-of-financial-year budget so it goes further
The end of financial year is rolling around again and with it comes an amazing opportunity for start ups to jump into new projects and save a bit of cash at the same time.
Businesses, particularly SMEs, should be mindful of investing in avenues that will bring real value. Unlike office equipment and shiny new tech, which will immediately depreciate the second it leaves the box, there are some options that will straight up save you money or at least open up opportunities for future revenue.
It's time to take a risk.
If you have a budget to spend in June to offset your profits, this is a time to be adventurous. Not ‘bungee jumping in Peru’ kind of adventurous, but you can afford to try a few more things with the knowledge that your financial risk isn't so great.
So test that that crazy idea, develop that app, launch that campaign that could be great but always seemed just a little too expensive to try. Think of this budget as extra time and use it to go for a Hail Mary.
Spend big now.
If you have the opportunity to pay a lump sum upfront in June, instead of monthly instalments, take it. You can claim the expense as a tax offset immediately. Of course, you could claim the offset in the next calendar year anyway (providing you are still making a profit), but the difference of a year can mean a lot to SMEs and start-ups.
Open Up To New Audiences
Find a new niche.
Speaking to a new audience is a big task that comes with expenses. Research and testing, dedicated collateral and copy, marketing campaigns and budget, product modifications, and landing pages all add up.
But this kind of investment, while initially hefty, opens the door for an entirely new source of clients, users, and revenue. By using an EOFY windfall to crack open a new market, you’re investing in an avenue with the potential for growth. Just make sure you factor it into your budget projections for the coming year because there’s nothing worse than a fallow market segment.
Upskill Your Team
Skills: the gift that keeps on giving.
A professional development course is another great way to invest your surplus. Most courses will demand payment upfront, meaning a larger offset at tax time. But this investment opens doors and builds loyalty in your team. To get the most out of it, make sure you’re sending your team to courses they’re actually interested in and want to pursue long term.
Still not sure?
If you're still unsure how to maximise your tax offsets, get in touch for a free, and obligation-free, consultation. We believe in small business and we're here to help.