• Business Growth & Optimisation

Top Tips for Hospitality Operators Preparing for EOFY

5 min. read26.05.2022
By Team Zeller

Discover 8 simple tasks you can tackle today to streamline your EOFY processes.

The end of the financial year brings with it a long list of administrative tasks. No business owner looks forward to all of the paperwork required. It’s a lot of work — particularly for hospitality merchants juggling 7-day trade at the same time.

The trick to mitigating the extensive time commitments of EOFY is getting prepared sooner. Not only will doing the legwork now alleviate the time and paperwork required of you later, it will set your business in better stead for the new financial year. Plus, you may discover ways to minimise the money owed to the ATO and have the time to capitalise on them.

To ensure you put the right foot forward as the end of another financial year draws close, we’ve put together a list of eight things you can do right now to alleviate the headache of tax time.

1. Chase outstanding invoices

In Australia, invoices are paid an average of 25.5 days late. Getting on the front foot now will ensure your accounts receivables are reconciled in time for EOFY. Plus, you'll improve your cash flow as payments land in your account.

To speed up the process, it’s best to invoice as soon as possible. The sooner you invoice, the higher the likelihood of being paid before EOFY. Better yet, take payment on the job with a mobile EFTPOS terminal. When you accept payment via Zeller Terminal, funds are swept to your Zeller Transaction Account overnight — available for spending on your Zeller Mastercard. It's the fastest way to speed up your cash flow.

2. Capitalise on the instant asset write off with some new purchases

Considering a new commercial oven? Now is the time to purchase and install it. With an instant-asset write-off limit of $150,000 for each asset – now newly extended to the end of the next financial year – you can purchase major assets such as fridges, ovens and coffee machines and have the business portion immediately deducted.

Again, with cash flow on your side, purchasing now can mean a sizeable tax break, allowing you to cruise into the new financial year with a bit more cash in your back pocket — rather than wait another 12 months for the end of next financial year.

3. Pay your invoices

When it comes to footing the bill for wages and utilities, it’s not just what you pay — but when you pay it.

It sounds obvious, but paying your invoices early could save you a lot of dollars. That’s because many merchants and suppliers are often willing to negotiate shaving a portion off the outstanding amount if you’re willing to pay early. If your suppliers are amenable, not only will you save money — you’ll be minimising the amount owed at the end of the financial year.

4. Do a stocktake

It’s the last thing you ever feel like doing, but it could be one of the most valuable. Taking stock will give you oversight over what you have on hand.

If you have a turnover of more than $10 million, you actually don’t have a choice as to whether to undertake a stocktake or not — you’re legally obliged to. If you have a lower turnover and can reasonably estimate stocks valued at more than $5,000, you may be eligible for tax deductions or GST credits.

5. Buy up on discounted products

As time-consuming and laborious as they are, stocktakes can pretty quickly tell you if your product levels give you the room to capitalise on EOFY sales. A lot of your suppliers will no doubt be trying to offload excess stock, which leaves you in a position to cash in on the lower prices.

If you have the room and the knowledge of how quickly stock moves, buying in bulk today could save you a lot tomorrow.

6. Get on top of your deductions

Put simply, a tax deduction is something you paid for with your own money to support the running of your business or venue. This means when it comes time to do your tax return, you can deduct this cost from your taxable income — reducing the amount owed to the ATO.

While something like the cost of a single chair may seem a marginal deduction, when you combine all of your costs across a whole financial year, it can save you thousands.

The most common tax deductions for hospitality business owners include:

  • uniforms

  • tools and equipment, including payment hardware such as EFTPOS terminals

  • car expenses

  • travel expenses

  • home office running expenses

  • self-education expenses

7. Arrange for a depreciation schedule

With each day that passes, the fit-out of your business or venue depreciates. If you’re properly prepared, you could be reaping the benefits of every cent.

Regardless of whether you own or lease your premises, any building works completed or plant and equipment assets added in the last financial year could work in your favour at tax time as the depreciation can be claimed as a deduction. Think paint jobs, expansions, new flooring, renovated bathrooms – you name it, you can claim the depreciation of it.

The cost of the depreciation schedule itself is also totally tax deductible.

8. Make the most of your spare cash

If your cash flow is looking healthy, consider how you can put any spare funds to work to help lower your taxable income. This could include prepaying expenses — if you have an annual turnover of under $10 million, you can claim an immediate deduction for up to twelve months.

Are there delivery vehicle lease payments you could pre-pay? Perhaps there are regular stock purchases you could also pay for now ahead of the new financial year? Whatever it is, paying for it now could mean footing a smaller bill after June 30.

Being in the know about how to prepare for tax time is the biggest cost-saving measure of all. It’ll minimise stress, hassle, and most important of all – your tax bill.

Now that you’re prepared for the end of the financial year, keep up with the latest Zeller updates and announcements by subscribing to the Zeller Business Blog newsletter below.

To fully prepare your business for the end of the financial year, schedule time to speak with your accountant or financial advisor. Please note this article is for educational purposes only and does not constitute advice.

How Zeller solved Decoy Cafe‘s Downtime Issues

Since making the switch to Zeller, Decoy Cafe has resolved its biggest frustration. Coffee is a family affair for the Spathis’. Brothers Bill and Chris have been perfecting the art of brewing for more than 30 years, ever since their first summer holiday job working in the family’s coffee lounge. These days, the coffee connoisseurs can be found on Melbourne’s busy Exhibition Street. Every morning, Bill fires up the roaster and Chris gets to work preparing the kitchen for the busy day ahead. The smell of fresh coffee wafts out into the street, welcoming Decoy’s loyal customers in for their morning cup. But Decoy had a persistent problem. Their EFTPOS terminal, provided by one of the big four banks, would frequently drop out during rush hour — forcing them to rely on an I-owe-you honesty system. We sat down with Bill to understand more about the Melbourne coffee scene, what makes Decoy unique, and how Zeller is helping business run as normal. How did you get started in the coffee business? We’ve always been involved in coffee, it’s in our blood. As kids, we didn’t get school holidays. We would jump on a train and head for the city, to dad’s coffee lounge. We’d arrive early in the morning and help dad take orders, serve customers and make coffees. Then, when my brother and I went to Sydney for a period in the early 90s, we continued the family legacy. We established and ran Retro Cafe for about 15 years, which was next door to Sydney’s State Theatre. It became a bit of an institution. We hadn’t started roasting our own coffee yet, though. Eventually, we came back to Melbourne and landed in Flinders Lane. This is when the cafe scene became very competitive — you had to do something different to stand out from the crowd. So, we decided to roast our own coffee. It’s difficult to roast beans in the middle of the CBD, due to council restrictions, so we ended up finding the site at 303 Exhibition Street. We’ve been roasting here for 14 years now. What’s changed in the three decades since? Back in the 70s, people ordered their coffee so hot it was sacrilegious — but that’s the way most people liked it. There was also far less diversity. At one stage, most people were buying coffee from the supermarket. People are more discerning now. Most are buying their coffees from local roasters. Single origins are our specialty, and we do it well. We roast single origins from Colombia, Costa Rica, Brazil, Tanzania, Ethiopia, Rwanda, Kenya, El Salvador, and beyond. All our beans are roasted in small batches, which helps us to make sure every roast highlights the beans’ unique characteristics and gives more consistency within each batch. The cafe industry has changed dramatically from the 70s to now, and it’s still constantly changing. You’ve got to keep up, whether that’s with a new offering like beans, better service, great staff, or new equipment. Last year, we renovated the cafe and installed a Modbar under-counter coffee machine for a streamlined coffee service. We also recently upgraded our EFTPOS terminals to Zeller. What made you decide to switch EFTPOS terminal providers? We were with one of the big four banks, and we were very unhappy with the number of dropouts. Our EFTPOS terminal would stop processing transactions at peak periods. Our upstairs area would be packed with diners eating breakfast, while downstairs would be busy with takeaway coffee orders and there would be a queue out the door. But the terminals would go down, so none of the customers could pay — they’re not carrying cash these days. We’ve built up a strong customer base. About 95% of our customers are regulars. So, when the terminals were down, we’d take a customer's name and they’d come back the next day to pay us. We don’t have any of those issues with Zeller, so I’m happy to say we don’t need to do that anymore. Our terminal has 4G and WiFi. If the 4G network goes down, WiFi takes over — business continues, as normal. "Taking payment from a customer is simple, as it should be." How did the outbreak of the pandemic affect the business? It's been tough, I won't deny it. We have a great product and a loyal customer base and that's allowed us to keep going. The COVID-19 pandemic and lockdowns impacted sales, as we lost all our corporate customers when offices emptied out in Melbourne's CBD. What's kept us going is essential workers and tradespeople from nearby building sites and an increase in the number of  “home barista” customers — people buying their coffee beans from us to make their own coffee, while working from home. Tell us about working with family. We believe that being a family business has helped us succeed and stay resilient even in these challenging times. Chris and l have worked together from the very beginning, starting in our late father’s restaurant as young boys. We work well as a team and I think it’s part of what makes Decoy a success. A lot of cafe owners these days will hire a manager, but we’re owner-operators, and there’s always one of us here. We do that because we really love working with customers. We give 100% when it comes to quality, service and staff. Chris and I share those values. We rely on each other. Decoy Cafe is located at 303 Exhibition Street, in Melbourne's Central Business District. Drop by for your morning coffee, a quick snack, or lunch, or pick up a bag of fresh coffee roasted on-site (also available on the newly-launched Dark Horse Coffee Roasters website).

Your Guide to Opening a Bar in Australia

Discover how to navigate bar licenses, choose alcohol suppliers, and more. The Australian bar scene has changed significantly in recent years. Where large-scale pubs and mega-clubs once dominated the scene, small, individually-owned bars have quickly become the watering hole of choice for many. It’s an exciting industry to be a part of, with plenty of opportunity to create a social environment that is uniquely yours. Opening a bar can be a very rewarding — and profitable — endeavour, especially if you enjoy working with people and creating a fun, welcoming social scene. Before opening the doors to patrons, it pays to take the time to carefully plan your bar-owning journey to ensure that the business is primed for success. Whether it’s a cocktail bar, specialty pub, wine bar, or even a non-alcoholic bar you’re planning to run, this guide will help you lay the foundations for a booming business. Checklist for opening a bar Before opening the doors for business, there are a number of steps required to ensure that your bar can operate legally. Here’s a checklist of things to consider. 1. Check what licences and permits you will need Each state has its own classification system for the types of licences you may need, so it’s important to first enquire with the liquor licensing body in your state to determine exactly what licences you'll require to operate your bar. The type may vary depending on the nature of the business, such as opening and closing times, so you should familiarise yourself with the different licences and their costs in the early stages of planning. Other licences and permits required may include a food service licence, a music licence, a gaming licence for any gaming machines on site, and any building and planning permits for renovations. Most licences will need to be renewed yearly, so it’s worthwhile considering your ongoing costs in advance. Discover more about the different types of licences you might need below. 2. Find the right location The visibility of your venue from the street and its ease of accessibility will be two important determining factors in the success of your venture. Do your homework before signing the lease, so that there are no surprises down the road. How will patrons get there, and is there enough parking or public transport to accommodate numbers? Check out the competition — are there other bars nearby? What about other restaurants, or hospitality venues? Will the landlord allow renovations to the premises? It’s also important to research zoning laws in the area, as some local councils may have restrictions on liquor licensing in certain suburbs. Noise is another important consideration. Give some thought to your potential neighbours — if neighbouring buildings are residential residences rather than business residences, your ability to operate into the early hours of the morning may be impacted. 3. Prepare a business plan A business plan is your roadmap for success, so spend some time documenting the steps to achieving your short and long term goals. It should also include your budget, forecasts and expectations for growth. For guidance on preparing a business plan, read How to Write a Business Plan: A Step-by-Step Guide . 4. Choose an alcohol supplier Selecting alcohol brands that are aligned with your vision is an important step. The purchase of alcohol will be an expensive initial outlay, so it’s critical to get it right. Opening a successful specialty gin bar, for example, will require a range of unusual and diverse craft gins as well as fan favourites. On the other hand, a country pub requires a menu of local wines, beers and ciders, so you’ll need to find suitable local producers. When sourcing a liquor supplier, don’t just consider their range. Take the time to evaluate their payment and delivery terms, as well as the minimum order quantities, to avoid locking up too much start-up capital in inventory. 5. Hire the right staff Creating the right vibe behind the bar is just as important as having the right drinks list. If you don’t have the necessary experience to mix drinks, or navigate your way through a wine list, it could be time to bring in some professionals. Whether it's a mixologist with an extensive cocktail repertoire, or a sommelier who knows their Pinot Gris from Verdelho, their expertise will become a vital ingredient in the success of your bar. Start on the right foot by conducting staff training before launching to ensure that everyone meets professional standards. Hiring the right skills is critical, but don’t discount finding the right cultural fit for your business — skills can be learned, but attitude is much harder to teach. The cost of opening a bar in Australia Opening a bar comes with expenses, both upfront and ongoing, so preparing a start-up and operating budget from the outset is strongly recommended. Establishment costs can vary, but you can plan for the following set-up expenses: Cost of any licences or permits Renovation costs Seating and tables Glassware Equipment such as blenders, fridges, dishwashers Technology such as registers, ordering and payment systems , security systems Staff uniforms Start-up inventory Ongoing expenses will include: Rent Utilities such as water, gas and electricity Insurances Staff salaries/payroll Marketing Restocking inventory Once all the costs have been added up, take the time to review them and identify where savings can be made. Can you negotiate a better deal with a supplier? Is it possible to purchase second hand equipment? What measures are in place to reduce wastage or breakages? Set aside time to regularly review costs, and make sure that the business is running as efficiently as possible. If it isn’t, you might consider streamlining your drinks menu to focus on bestsellers, or eliminating less popular cocktails that use expensive ingredients to ensure that you’re not carrying more inventory than necessary. Getting your paperwork in order Liquor Licence Serving of alcohol is regulated in Australia, and requires bar owners to obtain a liquor licence for their venue. Liquor licensing requirements differ from state to state. The type of licence you require may also vary, depending on the type of bar, operating hours, if alcohol is being consumed on the premises or being purchased for takeaway, and if food service is also included. Bar staff should also hold appropriate certifications for the responsible handling and serving of liquor. Business Licence Business licences are managed at a council level, and may differ depending on the local municipality. Obtaining a business licence often requires the following documentation: Compliance certificate This document states that the existing or proposed use of the premises complies with council planning requirements at the date of the certificate. Zoning certificate This document lays out any requirements or restrictions that may impact how a property is used. The premises should be suitably zoned for running a bar. Occupation certificate Any renovations to the venue may require evidence that it is safe for occupation. Fire safety certificate This confirms that the fire safety measures that apply to the building meet the minimum safety standard. Construction certificate Prior to construction works, this certificate confirms that the construction plans and specifications are consistent with and comply with the Building Code and any other council requirements. Food Licence Bars that offer food service also need to register as a food business. This is usually managed at a council level, and will require an inspector to visit the venue to ensure that the food preparation area meets regulation. Staff will also need to undertake food handling training to meet food safety rules. Insuring your bar Insurance provides a level of protection in the event of an accident or mishap while running your bar. There are a number of insurance options to consider, including: building insurance contents insurance public liability insurance theft cover workers compensation insurance income protection insurance Take some time to speak with a professional about the right type and level of insurance for your business. Rules and regulations to enforce The terms of your liquor licence will require the enforcement of rules and regulations to ensure that your bar is operating lawfully. Exactly which rules and regulations you’ll need to enforce will depend on your particular licence, however the most common are: Serving alcohol to minors In Australia it is illegal to serve alcohol to anyone under the age of 18. Penalties may differ from state to state. Your staff will be obligated to refuse service to patrons under the legal drinking age. Smoking In most states, smoking is prohibited in enclosed bars and restaurants. Bars owners should provide adequate signage to patrons of designated smoking areas, if any. Lockout laws In some states, bar owners must adhere to lock out laws that impose curfews on serving alcohol past a certain time. Security Maintaining adequate security is important, especially if the bar has the capacity to hold large crowds. Hiring appropriately trained security is a must. Security staff may be required to hold a security or crowd control licence — it’s important to check the laws in your local state for necessary requirements. CCTV State regulations may require the installation of CCTV as a requirement of issuing a venue licence. Minimum standards for the quality and storage of footage may apply, and owners are responsible for maintaining the surveillance system as part of their licence. **Staff training **Bar staff will need to undergo Responsible Service of Alcohol training to ensure that they are familiar with the requirements of handling and serving liquor. Streamlining the payment experience Make a night at your wine bar more enjoyable by streamlining service, and facilitating speedy payments with a reliable point of sale (POS) system. With the right set-up, customers should have the option to start a bar tab, requiring only one payment transaction at the end of the night. A POS also allows inventory tracking, ensuring that popular drinks never run out and reducing your outlay on slow-moving ingredients. The POS you choose should also integrate with your payment processor, allowing patrons to pay using a variety of card and mobile payments. Zeller’s EFTPOS system makes it easy to accept payments from patrons, and even has the ability to discreetly prompt for tips during the payment flow. To find out more about how to maximise tips at your bar, check out ​​our guide on Tipping in Australia: How to Prompt for Maximum Tips . Opening a bar can be both exhilarating and nerve wracking, yet with some careful planning, your dream to become a bar owner can become a reality. With the right set-up from the beginning, you’ll bypass some of the common mistakes made by business owners and be on the right track to making your bar one of the hottest venues in town.

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