Two out of three small business owners say the end-of-financial-year period is stressful because of the time it takes them to meet their small business tax obligations, according to research from Xero.
Too little time at EOFY, say small business owners
A survey, commissioned by the cloud-accounting leader and conducted in June 2015, examined small business owners’ attitudes to the end of the financial year
When asked what would make their lives easier at financial year's end, 58 per cent of small business owners wished for an easier way of completing their taxes while 40 per cent wanted less paperwork.
“The message from small business owners is loud and clear: the end of financial year period is tough,” said Chris Ridd, Xero Australia managing director.
“We know these hard working entrepreneurs are not only delivering a great service, and creating jobs, they are also driving forward the Australian economy.
“That so many small businesses are planning to utilise the federal government’s immediate asset deduction ability shows that the policy will provide much–needed help to small businesses to purchase the equipment they need to grow and thrive.”
The survey also found that respondents who used cloud-accounting software are spending the least amount of time of all small business owners on doing their taxes.
According to the survey, just 10 per cent of those who use cloud-based systems spend more than five hours a month doing their taxes, compared with 30 per cent for those who use spreadsheet systems, 23 per cent for those who use desktop software and 17 per cent for those who use paper–based accounting. Those spending the most time doing their taxes (more than 20 hours each month) are those small businesses that use desktop-accounting software.
“There is no doubt that the end of financial year creates added stress for small business owners,” Mr Ridd said.
“But the data also shows us that savvy business owners who switch from paper, spreadsheets, or desktop software to the cloud are able to significantly reduce admin and paperwork. This lets them focus their time, energy, and passion on what they love doing — building a great business.”