the adviser logo

EOFY presents a big opportunity for brokers

by Staff reporter6 minute read
Presentation to brokers

Mortgage brokers and accountants are well placed to build deeper relationships with their SME clients this time of year by talking about their cash flow needs, says small business funder Scottish Pacific.

End of financial year housekeeping, combined with a review of cash management processes, will put small-to-medium businesses in a strong starting position for the new financial year, according to Scottish Pacific.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

“Cash flow is key to the health of any business. Now is the perfect time for owners and managers to get a clear understanding of their position, and explore the funding options that will help them in their business situation as the new financial year unfolds,” Scottish Pacific CEO Peter Langham said.

Scottish Pacific's top two EOFY tips for SMEs:


1 – Reassess your cash flow position

Thinking what has happened over the past year and what is about to happen in the upcoming financial year, now is a great time to review strategic goals and consider whether the business is using the most appropriate funding solutions to meet these goals, Mr Langham said.

“Working capital finance is essential for all business situations and without it, you will not be able to fulfil your ambitions. Therefore, it is critical to consider all working capital options and make sure you pick the right one for you,” he said.

Trade and Debtor Finance are two options. Mr Langham points out that they are linked to the success of the business (not your personal assets) and should not require real estate security, providing flexibility to expand.

2 – Keep your income-producing assets up-to-date

SMEs can reduce their operating costs, sometimes very significantly, by structuring finance and repayments to suit tax and cash flow needs.

“Keeping your income producing assets up-to-date contributes towards keeping a business operating efficiently, and maximises cash flow,” Mr Langham said.

“Make sure you utilise all the tools and tax planning assistance you can find, to keep assets up-to-date and possibly avoid costs in the future.”

Four EOFY housekeeping must-dos:

1. Meet your superannuation commitments before 30 June
2. Put tax changes on your radar
3. Bad debt – write it off
4. Be aware of credit reporting changes from 1 July

Meet your superannuation commitments before 30 June

Superannuation is not tax deductible until it has been paid, so ensure all your superannuation obligations have been completed prior to 1 July. It’s the right thing to do by staff, and is a great way to reduce your company tax bill. Look at funding options, including debtor finance, that allow obligations to be met while smoothing out the cash flow implications.

Put tax changes on your radar

New financial year, always new tax updates to be aware of. Your financial advisers will be able to highlight changes, or the ATO website is a good source of tax amendments that SMEs should be aware of. It’s important to be well-positioned to take advantage of positive change (continuation and extension of the $20,000 instant asset write-off, for example – the turnover for eligible businesses has increased from $2 million to $10 million) and to be prepared for adverse change.

Bad debt – write it off

If you’re still chasing old invoices from the last financial year, now might be the time to write them off. Bad debts are tax deductible and SMEs can use them to offset their taxable income.

Be aware of credit reporting changes from 1 July

From 1 July the ATO will disclose to credit reporting bureaus the tax debt information of businesses who have not effectively engaged with the ATO to manage their taxation debts. Take steps to ensure tax arrears are paid down (invoice finance can provide the necessary working capital to prevent the cash flow issues that often lead to tax arrears).

EOFY presents a big opportunity for brokers
TheAdviser logo

James Mitchell

James Mitchell


James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.


You need to be a member to post comments. Register for free today


matt comyn cba speaking ta bzhun1

CBA CEO acknowledges brokers following mortgage growth

The Commonwealth Bank of Australia (CBA) has released its results for the financial year ended 30 June 2022 and...

wif awards 2021 crowd ta giiu3m

Submissions open for Women in Finance Awards 2022

Hosted by Momentum Media, the Women in Finance Awards is returning for its sixth consecutive year to recognise the...

Cameron Poolman ta

OnDeck confirms origination surge following buyout

In early February, OnDeck Australia’s (OnDeck) executives and investors collectively purchased 80 per cent of the...

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more