EOFY Checklist What Small Business Owners Should Review before 30 June

As the end of the financial year approaches, many small business owners are focused on accounts, tax planning and meeting with their accountant. It is also a good time to review the legal side of your business to make sure everything is still working as it should.

To make sure that everything is current in your business consider the following:

• Are employment contracts up to date? Do they clearly set out roles, pay arrangements, leave entitlements and notice periods? Many disputes arise simply because expectations were never clearly documented at the beginning of employment. Also look at position descriptions. Has an employees position evolved, been promoted or taking on additional tasks? If so this should be documented.

• What do your policies and procedures look like? As workplaces become more conscious of issues such as bullying, harassment and appropriate conduct up to date policies not only guide staff behaviour but can also help protect the business if a complaint arises. This is an ever changing space as we come to the end of the financial year it’s a good time to review and amend your policies and procedures if necessary.

• Another area to review is your agreements with suppliers, contractors and business partners. Many small businesses operate on long-standing relationships and verbal arrangements. While trust is important, having clear written agreements can prevent misunderstandings and make expectations clear if circumstances change.

• It is also worth checking that your business structure and registrations are still appropriate. As a business grows, what worked in the early days may not be the most effective or protective structure moving forward. Are you looking to bring on a new partner/director or are negotiations starting regarding selling this business at the end of this financial year?

• Finally, consider whether the key people in the business have appropriate authorities in place. If the owner or director is suddenly unavailable, are there clear arrangements allowing someone else to manage urgent business matters? Should there be a corporate power of attorney put in place to make sure that the business can continue to operate in the event of an unexpected crisis.
  

Taking the time to review these issues before the end of the financial year can help identify gaps before they become problems. For many businesses, a short legal review can provide reassurance that the foundations of the business are as strong as the work being done day to day. 

Make an appointment with Anthony Short today.

“Liability limited by a Scheme approved under the Professional Standards Legislation. This article does not constitute legal advice and provides general information only.”