As another end-of-financial-year rolls by, now is as good a time as any to undertake a bit of housekeeping and give your business finances a tidy up!
The daily grind and stresses of running a small business can often distract and exhaust many business owners leaving them rushing and unprepared as they approach the end of yet another financial year.
It’s that time when we draw a line under our business finances for one year, take a deep breath, and dive straight into the next.
This year, before leaping straight into it, why not stop and take a moment to take stock of your finances and begin the year with a fresh outlook?
These are our five ideas to get you started.
The Australian government’s business website, www.business.gov.au can help you understand your compulsory insurance requirements, along with other types of cover you should consider, like personal insurances to protect yourself, your income and your family in the event you’re injured or become too ill to work.
Additionally, there are policies to protect your premises, your stock and machinery.
If you’ve had insurance for a while, perhaps shop around to see if there are better options that may provide a better deal for you and/or your business.
The start of a new financial year is perfect for developing a forward strategy. To get organised, and stay organised, throughout the coming year start by understanding your industry’s regulatory obligations and entitlements. Look at government concessions, asset write-offs and deductions.
Stay up-to-date with compliance responsibilities like, Single Touch Payroll, effective from 1 July 2019.
- regularly review your profit and loss: monthly, quarterly, annually.
- track revenue to ensure your billing and collection procedures provides adequate cash flow.
- calculate and understand the cost of doing business; devote more time to activities that are the most profitable and help grow your business. You’ll be surprised how many business owners have little idea on the margins and profit on the various services and activities they provide
- A good business adviser can help you put a system in place that will keep your tax records organised and up-to-date throughout the year, it may even make your tax accountant smile. Why not call them to arrange a time to talk it through?
If you’re doing things a certain way because that’s how they’ve always been done, it may be time to cast a critical eye over some or all of your business procedures.
- better, faster or more efficient ways of doing things?
- technologies to simplify processes, e.g. point-of-sale (POS) systems?
- process bottle-necks or duplicated steps that can be safely bypassed?
- ways to automate manual processes like running reports, making appointments or paying regular accounts?
Staying on top of business performance, trends and cash flow can eliminate surprises by spotting potential problems and identifying supply and demand patterns.
- analysing data and trends from previous years or seasons.
- looking for peaks and troughs in sales, job completion times and inefficient uses of labour.
- identifying what worked well and what didn’t work so well.
Plan to grow
Once you know where you are, you can look for ways to move forward.
Whatever your business’s growth strategy is, be sure you have the resources to support it. Consider whether you’ll need to invest in machinery, supplies or specialist staff?
Now, update your business plan and review it regularly to stay focused on where you’re heading.
Running your own business is hard work, but it’s also one of the most satisfying and important things you can do.
Richard Branson once said, “A business is simply an idea to make other people’s lives better.” So, this new financial year, start refreshed and set yourself up to make your life, your family’s life and your customers’ lives even better.
Talk to us find out more.