Managing people is a key part of any small business – but it can be one of the most difficult aspects of the job. We put your questions to our experts!

What are some of the key things to think about at the EOFY to reduce my tax bill?

Morgan Wilson, Founder and Director at Creditte, says:

Key EOFY Tax Considerations for Electrical Contractors

With EOFY approaching, electrical contractors can proactively reduce their tax bill and improve cash flow. Here are some key strategies:

Maximise immediate deductions: Take advantage of the instant asset write-off (subject to eligibility and thresholds). Purchasing tools, equipment, or a work vehicle before June 30 could provide immediate deductions.

Review super contributions: Making additional super contributions (within caps) before EOFY can be a smart way to reduce taxable income while securing your retirement.

Prepay expenses: If cash flow allows, prepaying business expenses, such as insurance, rent, or subscriptions, can bring forward deductions.

Write off bad debts: Review your accounts receivable—any unrecoverable invoices should be formally written off before EOFY to claim a tax deduction.

Take stock of stock: If you hold inventory, conducting a stocktake and writing off obsolete or damaged items can lower your taxable income.

Structure for tax efficiency: As your business grows, review whether your business structure is still the most tax-effective option. A restructure may provide benefits.

How do I price jobs to ensure I’m making a profit and not just covering costs? 

Steve Kantor, Fractional CFO with clients in the construction and trades industry, says:

When determining the percentage of profit to build into your pricing, a general rule of thumb is to aim for a profit margin of 50% for most industries. However, this can vary depending on your sector and business model. The key is to strike a balance that allows you to cover costs, remain competitive, and support your growth objectives.

When putting together quotes, it’s vital to consider more than just your profit margin. First, ensure you’ve accurately accounted for your direct costs, such as materials, labour, and other expenses directly tied to delivering your product or service. Then, factor in your overheads. These are the fixed costs you’ll incur regardless of sales, like rent, software, and administrative expenses.

Next, think about the value you’re offering. Pricing should reflect not only your costs but also the perceived value to your customers. If your service delivers exceptional results or saves the client significant time or money, your pricing should reflect that premium.

Finally, consider your market position and competitors. Undercutting may win short-term business but can erode long-term profitability. Instead, focus on differentiation and creating value.

A data-driven approach, reviewing your financials, benchmarking against competitors, and regularly reassessing your costs, will help you maintain healthy margins and sustainable growth.

How can I raise my prices without it p*ssing people off?

Jasmine Parasram, Pricing Coach at Jasmine Designs, says:

If you aim to avoid p*ssing people off, your prices will never go up. Ultimately, you’re a business, and to grow as a business, you need to price yourself out of the market that can’t afford you. You don’t owe affordability.If you have repeat customers, giving them a one to three-month heads up that prices are going up is a great way to increase your prices while maintaining the relationship. This small act of courtesy may be the thing that sets you apart and keeps that client long-term. Communicate with them so they are well informed and aren’t shocked when it happens.

On the other hand, if most of your jobs are one-offs and most of your customers are new each time they work with you, they likely don’t know what the price was before you raised it, so you don’t have to worry about them comparing. If they did see the price before but now it’s more, that’s not on you, but a good practice is having a note stating quotes are valid for 30 days on your estimates. Prices today aren’t promised tomorrow.

Lastly, be mindful of the frequency and amount you increase your prices. Yearly is expected in most businesses, or increasing when your business changes in terms of scale or service level. A 5-10% raise is something that most customers can stomach, a 20-30% without a justifiable reason that benefits them will most likely make the customer think twice or go elsewhere. Remember, your prices need to serve the future and growth of your business first before they serve the customers’ budget.