It’s that time of year again – physical retailers across Australia are getting ready to lodge their tax returns and hopefully, see a nice supply of extra cash role in from the last financial year. While a bit of extra money in the bank is a great way to start the next financial year, it pays to spend your tax refund where it counts to benefit your business in the short and long term.
Let’s look at a few smart ways to invest your tax refund in your store or brand.
Pay off bad debt
While paying off bad debt with your tax refund is certainly not as exciting as taking your team on a weekend getaway to the Gold Coast, it’s one of the more responsible ways to invest in the long-term success of your retail business.
Regardless of whether you’re receiving a modest or mighty tax refund this year, use the money to lower or pay off bad debts such as credit cards and eliminate paying high interest on accounts that aren’t going to benefit your business.
Review your business structure
The start of a new financial year is the perfect time to consider restructuring your business. Whether you’re a sole trader looking to take on a partnership or you’re thinking of expanding into a second retail store, using this year’s tax refund to grow and restructure your business will be money well spent and could lead to exciting financial gains in the next 12 months.
Start an emergency fund
Putting money aside for a rainy day applies as much to business owners as it does to individuals. This year’s glorious tax refund is the perfect amount of money to start a business emergency fund and will safeguard your business against any unforeseeable mishaps such as employee injuries, low profit margins, equipment failures and shop repairs. The most common way to start an emergency fund is to open a high-interest savings account and deposit money on a regular basis, starting with your tax refund.
Buy those big-ticket items
If your shop is in desperate need of new computers or a POS system, now is the time to spend big on big-ticket items. Remember that any business related expenditures that cost over $300 need to be depreciated over the life of the item, which means that if you buy a big-ticket item at the end of the financial year, it won’t have depreciated enough to give you a decent benefit on your tax return. However, if you spend big on necessary items at the beginning of the financial year, your depreciation calculation will cover more time and result in a bigger deduction come next year’s tax return.
Create a new marketing campaign
Another great way to put this year’s tax refund to good use is to invest in a business facelift. If your marketing efforts over the last year have failed to deliver substantial sales, putting money into new marketing avenues such as a new website, social media campaign or Store Discovery Optimisation can give your business the new financial year revamp it desperately deserves.
Register with Booodl today to start increasing your shopper visits and sales with Store Discovery Optimisation.