The start of the new financial year is the perfect time to take a step back from your business to assess how it’s going and make any necessary adjustments. But when you’re engrossed in the day-to-day running of your business, it can be hard to know where to begin. We’ve outlined the steps you should take to make the process of conducting a check-up of your business easier and ensure you get the financial year off to a good start.
Pull your financial reports.
Take a look at the finances of your business for the past 6 months. Two reports that you should start with are your profit and loss statement and balance sheet. This will give you the opportunity to make sure your books are in order or whether you have some issues that need to be addressed. Contact your bookkeeper if you require any assistance.
Conduct an analysis of your financial performance.
Using your interim reports, compare your current year to last year to see if your revenue and profits are heading in the right direction. It’s also a good idea to see how you’re tracking against your budget to see if you’re over/under spending and how your revenue is going compared to the forecast.
Adjust your business strategy.
Based on what you’ve learned from the previous exercise, make any necessary adjustments to your strategy. This might involve making changes to inventory levels, increasing your marketing spend, hiring more staff or renegotiating your supplier agreements. Having the necessary data first ensures you are making informed decisions on the future direction of your business.
Catch up with your bookkeeper.
Now is a good time to see your bookkeeper and get some insight into how you can improve your back office processes. They can suggest new procedures or even recommend software that can make your business more efficient and save money.
See your accountant.
The start of the financial year is a good time to see your accountant or tax agent to advise you on your tax strategy for the coming year. With a number of changes to tax law coming into effect from 01 July, now is the time to work out how you can take advantage of these changes to minimise your tax and improve profits.
Meet with your finance broker.
Taking the time to meet with your finance broker once or twice a year can potentially save you hundreds or even thousands on your business loans and lines of credit. You may be able to get a better deal or a new finance product that can help improve your cash flow.
Review your personal finances.
As a business owner, it’s easy to get so caught up in your business you forget about your own personal finances. Are you paying yourself enough of a salary? Have you put enough money aside for your retirement? Do you have adequate insurance? Getting professional advice will ensure you and your family are properly catered for now and in the future.
While the above list seems like a lot of work, if you break it down to smaller, more manageable chunks and spend 4-5 hours each week for the next month, you’ll find that your business will soon be on track for a more successful year. Get in touch for advice on how to get this process started.
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