In the lead up to the end of the financial year, there is always a rush to get matters finalised and for loose ends to be tied up. In this rush, it can be easy for tasks to be missed. To assist in ensuring your business affairs are in order for the end of the financial year and the start of the next financial year, this article looks at the items that you should be reviewing.
If you are using a trust you will need to ensure that you make appropriate distributions to beneficiaries before the end of the financial year. These distributions should be properly documented using a trust resolution that has been drafted in accordance with your trust deed, and care should be taken so that it effectively provides for the streaming of dividends and/or capital gains.
As part of your distribution strategy, consider whether a family trust election is appropriate or if this needs to be varied or revoked.
Commercial agreements, Contracts and Licences
One of the key steps you can take to prepare for the next financial year is to review your commercial agreements and contracts to:
- ensure that you have in place current, written agreements with key customers or suppliers including personal guarantees;
- review your trading terms to ensure they are up to date and fit for purpose;
- identify whether there are any contracts (including your lease) that need to be renewed in the coming year, making a decision whether to renew and pencilling in the relevant dates to renew those contracts or commence negotiations for new agreements;
- ensure that you hold all necessary licences to operate your business;
- check that your insurance policies are up to date, appropriate and adequate for your current business operations;
- ensure your licenses and authorisations are up to date;
- check that you have registered any security interests/mortgages you may have to protect your interests. Rostron Carlyle Rojas Lawyers can assist with ensuring that your security interests are registered correctly;
- clean up any PPSR security interests registered over your business which no longer apply;
- update your company register, trust documents or partnership agreements to match your current business structure;
- issue invoices for all goods/services that you have provided under your contracts;
- chase debtors for amounts not paid in accordance with your contracts; and
- engage Rostron Carlyle Rojas Lawyers to pursue those debtors who have not paid your invoices when due.
Exit and Succession Planning
The end of financial year is also a good time to consider your exit plans or succession plans given your corporate structure and financial details will be at hand and up to date. If you are thinking about possibly selling your business, it is a good time to obtain advice from your lawyer and accountant regarding the structure of the sale and what steps you should be taking to prepare the business for sale. Similarly, the end of financial year provides a good opportunity to review and update your will as required in order to provide for your family.
Should you require any advice regards to your business affairs, contact our lawyers now to discuss your options in a no-obligation consultation. We will guide you, step by step and ensure the best possible outcome for your circumstances. Call our Brisbane lawyers on (07) 3009 8444 or our Sydney lawyers on (02) 9307 8900.
The blog published by Rostron Carlyle Rojas is intended as general information only and is not legal advice on any subject matter. By viewing the blog posts, the reader understands there is no solicitor-client relationship between the reader and the blog publisher. The blog should not be used as a substitute for legal advice from a legal practitioner, and readers are urged to consult RCR on any legal queries concerning a specific situation.