For many small trades businesses, the end of the financial year (EOFY) tax return process can be as daunting as a complicated repair job, especially after a long days work. The habit of pushing paperwork to the side for later often culminates in a frantic scramble as EOFY approaches. This tendency to postpone is not surprising when we consider the working habits prevalent among tradies.
According to research from Fergus, many are yet to embrace more efficient ways of working. Almost half (49 per cent) haven’t adopted job management software, and a substantial 43 per cent still rely on manual paperwork and spreadsheets. This attachment to traditional methods, while familiar, set the state for the annual EOFY scramble. It’s clear why tradies often find themselves in a bind during this period: sticking to these older, less efficient practices makes their tax preparation more challenging and time-consuming than it needs to be.
Dan Pollard, veteran plumber and founder of Fergus, said with 1 April just around the corner, trade business owners can avoid late nights and stressful searches for lost paperwork by embracing technology, such as job management software, before the new financial year kicks off. Job management platforms can do a lot of the heavy data-lifting and make tax time much less stressful by ensuring transactions are systematically recorded and organised right from the start. This in turn can save tradies their sanity and streamline the EOFY process.
Some of the benefits that will help tradies stay o top of their finances, and keep track of jobs include:
1. Effectively manage paperwork year-round
Managing paperwork can be a headache, especially when it piles up over the year. However, with job management software, this process becomes a breeze. Forget about those boxes marked receipts and invoices, this software automatically keeps track of everything your quotes, invoices, and supplier invoices. This means that, come EOFY, there’s no need to scramble through filing cabinets or a truck’s glove box; instead, all the documents and transaction records you need will be neatly organised and easily accessible online.
2. Direct financial integration and clarity
Keeping track of finances is crucial, and its even better when its hassle -free. The integration between Fergus and accounting systems, such as Xero, means financial data is always up to date. When an invoice is updated in the job management software, it instantly reflects in Xero for a clear, real-time view of the business’ financial standing. This feature offers quick access to vital financial summaries, from what’s owed to the details of all invoices. It’s about making sure tradies have a complete and clear picture of their business finances at all times, without the extra legwork.
3. Comprehensive job tracking
Using job management software, you can find every detail of every job in one place. From customer information, job files, photos, notes, and schedules, its all there. When EOFY rolls around, complete job tracking is a life saver. It lets tradies see everything they’ve done over the year at a glance, making it easy to pull together financial and operational data. This means less stress and no missing pieces when its time to report finances.
Dan Pollard said, EOFY doesn’t have to be a nightmare if everything’s set up right. Don’t get caught in the next EOFY rush; moving to a digital job management platform like Fergus not only means ditching the box of paperwork, but it also simplifies the process of collating key information for EOFY tax returns.
Taking the initiative now and getting your business organised well before April 1 reduces the time spent on paperwork at crunch time, freeing up more daylight hours for the actual work that drives your business. Better yet, there will be more time to kick back after a hard day on the tools.