Our top 10 steps to make the most of this financial year, and how to start off on the right foot.
For a lot of businesses, the end of the financial year means they’ve handed over all of their financials (or about to) to their accountant and have left them to it.
Well I hate to be the bearer of bad news, but your job doesn’t end there. Take advantage of the new financial year, and get on top of your business. By starting to plan for the end of the financial year, at the start, you can ensure that you are going to be taking advantage of all the opportunities this year has to offer! Make your business flourish, and make improvements from the previous year. It may sound long and boring, but it’s totally worth it. Now let’s get this stuff done!
- Review your business strategy
This will allow you to identify areas for improvement. An overall look at the business to see what can be made more efficient, or if processes need to be changed. Is this strategy going to lead you and your business to where you want to be? Is it still effective? Decide and then move forward.
- Review your business plan
Did you achieve the previous year’s goals? This can be financially related, customer or employee satisfaction related, product quality or efficiency, brand management and reputation etc. By analysing these goals you can establish whether or not they were met, and if not, why not? This can then put you on a path to discovering what needs to change, and implementing this change.
- Goal setting
The answers to the above questions become the basis for your goal setting. You need to understand what it is you would like to achieve this coming year. And this means writing it down! This allows you to develop a new business strategy that will work towards achieving these goals and objectives.
- Review your business structure
Does your current structure meet the requirements of your businesses present or foreseeable needs? Is expansion a possibility? Why we ask these questions and why you need to come up with an answer, is because if a re-structure is required, then different compliance and taxation regulations may be applied. Kickstart Kick start
- Review your finances
Establish if you are meeting your targets, and if not understand why. Is it through material/manufacturing costs, labour costs, efficiency, not meeting sales targets or does the price point needs to be adjusted? Find out what room you have to move and where, and then proceed accordingly.
- Review your insurance
It’s such an important part of running a business, from small to large and everywhere in between. Whilst there are legal obligations, it’s also important to do a risk assessment and look at other potential risks to the safety of your employees and your business. This review should be taken out not only to protect yourself, but to also make sure you are fulfilling your legal requirements.
- Asset protection
Speaking of legalities, your assets are what you’ve acquired with all your hard earned time and money, so make sure you look after them, and making sure their value is registered. If you’re unsure about how to go about it, the best thing is to speak to a professional. They know what they’re talking about.
- Establish a budget
Now that you know what you want to achieve, what improvements you would like to make, and how to go about it, you need to budget. I know it’s the scary B word, but it’s important and if you stick to it, it works! By knowing just how much you are going to commit to which areas of your business, you can put both you and your business in a much more stable financial position for the future.
- Use financial management tools
Trust me, they will make your life a lot easier, and make your finances a lot easier to manage as well. Cloud accounting software such as Xero keeps everything in one place. By starting to use these systems from the beginning of the financial year, come tax time for the following year, it will make both yours and your accountants lives a lot easier. Xero stores your documents and receipts meaning that everything is there for you when you want it, no wasting your time searching for it all. Time which you could spend any other way you would like (early knock off to the pub anyone?). It also allows you to create and send quotes and invoices and keep track of debtor payments. It also has all traditional payroll functions, such as the ability to file new employee details directly with the ATO, automatically pay Superannuation and allow employees to enter their timesheets.
- Manage and review your superannuation
Because after all, we’re not all going to work forever right? Knowing what kind of condition your super is in can allow you to take action, and get advice to improve the situation. Even if it’s already in great condition, it can always be better right? I mean think of the size of the caravan you can get to travel across Australia in. Talking to professionals will also help you to establish as a business owner what kind of opportunities this may present you with. It’s worth a look isn’t it?
And here’s a bonus tip (mainly because the list looks so much better finishing at 10 rather then 11), back it on up! Get all those important files backed up, and store it off site. We talk about insurance as a precaution, well here’s another one for you. If you have insurance as a ‘just in case’, then why not back up your files for the same ‘just in case’ as well. Because if that ‘just in case’ became a, ‘thank god I did’ then you are going to be very thankful indeed that you chose to backup, because imagine the paperwork then!
So follow all or even at least some of these steps, to get in shape for the new financial year! Financial stability gives you the ability to plan and execute, and grow and improve. It allows you to know the direction that your business is heading in, and make sure it’s the right one!
You don’t want to be another year behind, so get sorted and get started!