• What went well and what didn’t?
• What did you learn about yourself, your business and your systems?
• What business practices do you need to change so you can maximise your chances of greater success in the new financial year?
Investing your time in reviewing your year allows you to more accurately position yourself to reach your business and financial goals for next year.
For many entrepreneurs, this time of year is hell, magnified. If managing this side of your business is not your forte, make certain that you have a great accountant or bookkeeper to guide you through it.
Here are the top 10 steps you need to complete so you can face the new financial year confidently.
1. Review your terms of trade. If clients are paying late, it affects your cash flow and your ability to keep the business running. Consider alternative payment arrangements or incentive schemes to get those clients paying on time.
2. Review your financial reports for the year ending. Are they as you expected them to be or do you see unexplained highs and lows? Try to work out what caused them so you can anticipate these in your new year’s planning.
3. Prepare a cash flow forecast. When will money come in throughout the year and when will you need to pay it out? Are your finances balanced to cover the times when your expenditure is at its highest?
4. Work out your business and financial goals for the next year. What do you want to achieve and how can you do it?
5. Chase up overdue accounts. Try to end the year neatly. If you can’t recover the amounts, you are able to claim a tax deduction for bad debts.
6. Review your equipment and online systems. Are they working for you? Do they need upgrading? Importantly, will they meet your demands for the next 12 months, assuming the level of growth you expect?
7. Update or upgrade your accounting system to make sure it meets all the current legislative requirements for compliance.
8. Reconcile all your accounts, including banking, creditors, debtors and stock. This is the overview of your entire business financials and it will give you a clear picture of where your money is – or isn’t!
9. Should we mention BAS? Yes, remember to lodge your BAS statement too. It can be overlooked in this process.
10. Book an appointment with your accountant regarding tax minimisation and wealth creation strategies.
The CPA has produced an end of year checklist which goes into a lot of detail and covers everything you need to consider.
Remember, it’s not all numbers and graphs. The end of the financial year is a time of new beginnings so approach it with fresh eyes and ideas. Your future depends on it.