Working past midnight and on weekends is the norm for SMEs at the EOFY
An MYOB survey revealed that business owners are sacrificing their weekends and working past midnight in the lead up to tax time.
The end of the financial year really puts the pressure on small businesses, according to research from MYOB. The cloud-based management solutions provider found that 37% of small and medium enterprise (SME) owners have sacrificed their weekends in the lead up to the end of financial year (EOFY) and 23% have admitted to working past midnight.
Worryingly, nearly half (44%) say their EOFY process will significantly impact their work/life balance.
“Small business owners are already under pressure to meet sales targets, retain customers and ensure cash flow is steady for their business," said MYOB CEO Tim Reed. "These everyday obligations of running a business can be all-consuming, so it’s no surprise that people are forfeiting their evenings and weekends to complete their tax reporting.”
The availability of accounting software may also have something to do with the relatively high number of SMEs (44%) that were planning on completing their tax return themselves, Reed suggests. This is up 36% from last year.
“The increase in the number of operators taking on their own year-end tax preparation is likely a reflection of the uptake of cloud accounting,” Reed said. “Over the last 12 months, we’ve seen businesses embrace online accounting solutions, which makes these year-end tax burdens far less onerous than older, desktop software.”
Despite recent data suggesting that small businesses don't fully understand the $20,000 instant tax write-off, MYOB's survey found that 43% of SMEs were planning to use it this financial year.
While the results suggest that this time of year is a stressful one for many small business owners, the numbers also show that owners believe in not only their own business but others as well. 90% of small business owners agreed that SMEs are an important part of their local community.
“It's why MYOB is dedicated to supporting business success, because we believe that SMEs are vital to the fabric of Australian communities,” Reed said.