Small Businesses Find Tax Time Stressful, Confusing

Don’t feel bad if you find the end of financial year (EOFY) challenging – because so do most entrepreneurs.

A Xero survey of more than 1000 small business owners and decision-makers found that 71% considered EOFY to be stressful and 56% had experienced mishaps in previous years.

Furthermore, 83% of respondents said they found at least part of the year-end process overwhelming, with the biggest sources of overwhelm being:

Navigating tax compliance = 33%
Gathering financial data = 32%
The time investment required = 30%
Staying on top of receipts = 28%
Balancing financial deadlines with day-to-day operations = 26%

Xero managing director Anthony Drury said EOFY can be a difficult period for small businesses, due to the greater pressure it places on time and resources.

“We always encourage small business owners to connect with their accountant or bookkeeper throughout the year to make EOFY preparations easier. EOFY highlights how important those relationships are as advisors can help to alleviate pressures, from managing records and financial statements to understanding tax compliance,” he said.