As many businesses are preparing for tax time, it’s a great opportunity to review, plan and prioritise your business goals for the new financial year.
Here are some tips to help kick start your new financial year.
Review and get on top of your finances
Start by reviewing your financial statements from the last year. Look for things like:
- Where you spent the most money
- How much you paid in fees or interest
- Any recurring subscriptions
You may spot ways you can save money over the next year.
Reviewing your business financials (including your cash flow) will help you actively monitor the health of your business.
Forecast your cash flow
A profitable business needs a healthy cash flow to cover its everyday expenses. Keep the cash flowing in your business this financial year by looking at different ways to manage your cash flow. Update your cash flow projections so you can plan for any potential shortages or consider shortening or changing your payment terms.
Free up more of your time so you can better focus on growing your business. Some strategies to achieve this include:
- Setting deadlines for important tasks
- Handling your mail or email only once, so you reply, delegate, file or delete at the time you read it
- Creating templates for your frequently used invoices, emails or letters
- Automating your bank feeds straight to your accounting software
Organise your records
Accurate record keeping is vital for:
- Meeting your tax obligations
- Demonstrating your financial position to lenders if you need to borrow funds
- Providing a real-time overview of how your business is performing
Keeping your business finance separate, automating your bank feeds, and making sure your superannuation payments to staff are compliant are all ways you can keep your records organised.
Update your technology
Switching to the latest technology can help you manage and grow your business more easily.
Technology can be used to help you gain control of many day to day tasks. If there is one thing you do this financial year it needs to be digitalizing your administrative work, the time you save is invaluable.
Update your strategic plan
While you're working hard to tie up all the loose ends on the current year, try thinking about how you would like things to be different in the next, and how you can make that happen. By updating your plans, you can reflect on what you have experienced so far – and get specific about what you want to achieve.