The new financial year marks a great time to reassess your business finances and see exactly how you are tracking. Now is the perfect time to run through tactical practices to set up your business for the busy months ahead. For many, this is a time-consuming task that gets pushed to the side, but it will likely pay off in the long run.
Here are a few tips to get you started:
1. Assess your cash position
Cash is important to every business. Having enough money to pay the bills, purchase needed assets, and operate a business to make a profit is vital to a company’s success and longevity. Cash flow analysis examines the cash that flows into and out of a business — where it comes from, what it goes to, and the amounts for each. This is key to assessing any shortfalls and how best to overcome in the months ahead.
2. Update your Financial Statements
Financials are an overview of the company’s current finances. It shows the assets, debts, and equity the company holds. They can provide valuable insights into the health of your business. Try to stay on top of the Balance Sheet as well as the Profit and Loss (P&L) Statement. If you aren’t sure how to read these reports or what the data is telling you, please reach out and we can assist with educating you on your numbers.
3. Review your Expenses
Spend some time reviewing your finances by yourself, or with your accountant or bookkeeper. Look at whether you met your targets and what you can do differently next financial year.
4. Review your Business Structure
As your business grows and expands, you may decide to change your business structure, or to restructure your business. The compliance and taxation regulations differ depending on your business structure.
5. Review your Business and Marketing Plans
Create goals that align with your priorities and assess whether your current strategies are working within your business. Adapt to any changes that may have had significant affect on your current marketing plans and stay up to date with the regularly changing web.
If you need help with planning and someone as a sounding board, we welcome you to get in contact with our team.