End of financial year (EOFY) is always a busy time, as you work to finalise and submit your tax return by 30 June. With so much attention on getting everything completed by EOFY, it’s easy not to allocate time to also planning for the upcoming financial year. It’s important to ensure you have all your ducks lined up, so that when this financial year closes out you’re ready for the next one – to assist, we’ve compiled some starting thoughts to consider.

1. Evaluate your cashflow 
One of the first items to organise is sufficient cashflow – this doesn’t mean you need to have all the required funds on hand in cash, however. If your money is allocated elsewhere, you can consider options such as leveraging existing assets, or arranging access to additional funds with the likes of an overdraft facility. To gauge an accurate benchmark of your cashflow, consider running your numbers excluding any government payments you may receive during the year.  

2. Consider BNPL options for capital equipment 
Buy Now Pay Later (BNPL) is widely available, with most vendors accepting BNPL in various forms. In the medical space, BNPL for capital equipment takes the form of loans that allow access to funds upfront, with that capital paid back over the life of the loan. This means you have access to the equipment for use quickly, generating income while you make repayments in a tax-effective way. Look for equipment loans that have flexible repayment terms, don’t make you jump through hoops to apply and offer additional benefits, such as points in a loyalty program for purchases.

3. Review your home loan  
One of the best ways to maximise your financial position is to review your current loans, particularly large ones such as your home loan. Higher interest rates are still persisting and while your interest rate is important, there are a number of other factors that can affect the total cost of your loan. Hidden fees, inefficient loan structures and lenders not experienced in medical finance can all add costs, so start with these to take a holistic view of your home loan and assess it accurately.

 4. Pre-empt purchases and expenses 
Tax benefits are available when purchasing certain assets for business use – if you are considering purchasing assets for your practice such as new equipment, an upgraded practice fitout or even a new car, presenting this information to your accountant when planning for the next financial year will give you a substantial advantage when it comes to settling your final tax bill.  

The instant asset write-off has been extended for the 2023-24 and 2024-25 income years, which enables eligible businesses to immediately deduct the full cost of eligible assets costing less than $20,000 – as long as they are installed ready for use between 1 July 2023 – 30 June 2025. Speak to your accountant to understand more about this initiative.   

 5. Speak to the right professionals 
Getting the most out of your tax means you need an excellent accountant who knows your business, has extensive knowledge about your industry and understands your specific circumstances. When working with your lender, these factors are also key – it is imperative that you deal with a finance specialist who knows your profession and speaks your language. At Credabl, many of our team have been working in the medical finance industry for decades and have a deep understanding of the various healthcare professions. Our loans are designed to consider the unique needs of medical professionals, meaning that we can work with you for your specific situation.

 Preparing a stable and growth-centric strategy for your finances ahead of the new financial year might not currently be top of your list, but paying it the attention it deserves now can pay dividends in the future. Through managing your sources of capital, evaluating your flow of funds, reviewing your current loans and partnering with the right professionals, you can optimise your funds and prepare for peak and trough cycles throughout the year. To speak to the team at Credabl, contact them here or on 1300 27 33 22.

Disclaimer

This article is a guide only and does not constitute any recommendation on behalf of Credabl Pty Ltd (ACN 615 968 100) or any of its related bodies corporate (Credabl). The information in this article is general in nature and we have not taken into account your personal objectives or financial circumstances or needs when preparing it. Before acting on this information you should consider if it is suitable for your personal circumstances. Credabl is not offering financial, tax or legal advice. You should obtain independent financial, tax and legal advice as appropriate.