Avoid “Receipt Regret” This EOFY: How SMBs Can Simplify Tax Prep with QuickBooks
As tax time approaches, new research commissioned by Intuit QuickBooks reveals many Aussie SMBs are feeling underprepared and experiencing ‘Receipt Regret’. In fact, lost and damaged receipts are expected to cost Aussie SMBs a potential $948 million in unclaimed expenses this financial year. Receipt regret is a common theme for over half (51%) of Aussie SMB owners, who admit they regret not being more organised with their receipts throughout the year.
Time-strapped SMBs feeling anxious or underprepared for EOFY this year
The research shows tax returns can be a laborious process for already time poor business owners if the right management systems aren’t in place. In fact, nearly 1 in 5 (19%) SMB decision makers admit they feel anxious about doing their taxes this year, while 13% are feeling overwhelmed. Only 36% of SMBs feel prepared for tax season this year.
Keeping accurate records of expenditure via receipts is proving difficult, with almost half (47%) of SMBs admitting that their receipts have faded from the sun, while 42% have misplaced or lost receipts during tax season. Almost one in four (24%) have said they have been unable to claim a business expense in the past due to paper receipts being illegible or damaged.
In a cost-of-living crisis, every dollar counts, and improving processes for already time-poor business owners has never been more important. “For SMBs, using technology effectively to avoid receipt regret at tax time is more crucial than ever”, said Damien Greathead, Accounting and Advisor Group Lead at Intuit Australia.
Stress of preparing for EOFY affecting nearly 1-in-4 SMBs (23%) this year
Additional time spent preparing for the end of financial year tax adds stress for SMBs, with nearly 1 in 4 (23%) saying it affects their overall work-life balance. A quarter (25%) said they spend about 10 hours preparing for their tax return, while 13% spend 15 hours or more. Surprisingly, 2-in-5 (40%) SMBs reported taking on the task themselves by completing their tax return without the help of an expert advisor.
The research also showed over a third (33%) of the businesses surveyed want streamlined digital solutions (receipt management) and 29% want more reliable storage methods to help improve efficiency at tax time.
“It’s concerning to hear that so many SMBs are experiencing this level of stress at tax time, because help is available. Small Businesses are the backbone of our economy, but so many small business owners are time poor and burdened by admin tasks that impact their work life balance,” said Greathead.
“Our advice to small businesses is, you don’t have to go it alone. Working with an advisor in conjunction with reliable and affordable accounting software like QuickBooks can make a huge difference to keeping on top of business admin and managing stress,” he said.
“Our snap and store receipt function allows SMBs to capture business costs on the go when using our mobile app, ensuring potential business expenses are tracked in real time and receipt regret is eliminated. Through surveying our own customers, we know that 90% agree the QuickBooks mobile app makes it easy to stay on top of their expenses,” said Greathead.
Visit Intuit QuickBooks’ EOFY Hub for tips and more information to make tax time less stressful this year https://quickbooks.intuit.com/au/taxes/end-of-financial-year/ .
The research
PureProfile is an independent research services provider, which was engaged by Intuit Australia Pty Limited to undertake a nationally representative online survey in terms of location of 405 Australian business owners aged 18 and over that were selected via randomisation. The survey was conducted from 22 – 24 May 2024.
