8 Tips To Help You Plan For The End of the Financial Year
It is hard to believe that the end of the financial year will soon be here. I am not even sure how that happened, but that is mainly a testament to how productive and busy we have been over the past twelve months. And, I have no doubt that the next twelve months will be the same.
During this past year, we have had the honour of assisting many businesses, enabling them to sort out their finances and get ready for the approach of the end of the financial year. Because of our sound advice, and their hard work, they are now geared for success and growth. However, we believe that every business has the ability to succeed and much of it comes down to their organisational abilities. Here are the some of the top tips we recommend to help you (and your business) get through the end of the financial year in one piece and make it all go as smoothly as possible.
Stop procrastinating! It is so easy to put things off until tomorrow, and that only emphasises the mad rush you will experience when the 30 June hits. I am guessing there is something you could do today, no matter how small, to get the ball rolling. Sort out your receipts, enter your data into your accounting system, do some filing – even tackling just one of these tasks (or something similar) will mean that there is one less thing to do tomorrow.
Know Where You Stand Financially
If you plan on making some big-ticket purchases before the end of the year is out, make sure you can afford them. Familiarise yourself with how much is in the bank account as of today. Know what payments you have coming in and going out in the near future. Always check that you have enough funds left over to cover expected tax, BAS, superannuation, accounting costs and other end of financial year charges. Don’t make any spur of the moment purchases until you know exactly where you stand. However, do bear in mind the Government’s $20,000 tax deduction initiative which covers all purchases up to 30 June 2018.
Familiarise yourself with the ATO Requirements
Each year the ATO changes their rules and regulation, and it is up to you, as a small business owner, to know precisely what these changes entail. Check out their website and make sure you are ready to answer any questions your accountant or the ATO has. Understanding the current rules and regulations, including all workplace laws, will make you more informed, which is always a good thing.
Get Your Paperwork in Order
No one wants to deal with a pile of receipts that have never even been glanced at since the day they were placed in a shoe box. Go through all of your paperwork and make sure that everything is in order. The more organised you are, the better it will be for everyone in your company. Make sure all of your spreadsheets and accounting systems are up to date. No one wants to be running around at the last minute trying to find documentation or scout for information that should already be complete. It should be a time of celebration rather than a time of added pressure and stress.
Follow Up Any Outstanding Debts
Check to see how much money is owed by your debtors and ask them to settle before the end of the financial year. And, always as a matter of course, settle any late payments you owe. If companies are unable to pay for whatever reason, you may be able to write their debt off. Don’t automatically assume they won’t pay until you have followed all of your debt collection tactics and have spoken to them personally.
Create a Business Plan
The end of the financial year is not just the time to get your finances in order. It is also a time to reflect on the past year and to consider how you can improve over the next 12 months. Making a business plan is necessary, but it can be difficult when the stress of getting your accounts in order is taking up all of your time. Give yourself space to focus on the new financial year ahead. How can you boost your marketing? What can you improve? How can you measure your business success? What didn’t work as well as you thought it might? Put your thinking cap on and have some fun with it.
Have an End of Financial Year Sale
Sales don’t just benefit your customers. They enable companies to get rid of old stock which they want off their shelves before the year is out. Start the new financial year afresh by getting rid of products and boosting your cash flow at the same time. It will help you focus and fine-tune your plans for the new year ahead. Get rid of what isn’t selling great and look for innovative new products that can replace it.
Create a Cash Flow Forecast
Every business needs a cash flow forecast so it can anticipate the ebbs and flows that occur. Regardless of your niche market, there is always a time when things go a little quiet. This information is helpful, particularly for your marketing plans, as you can brainstorm ways to help boost your cash flow during these periods and know that you won’t run out of money mid-year.
The team at Accounts Studio wish you all the success for the new financial year ahead. If you have any bookkeeping questions you would like to ask, or need help in getting your bookkeeping up to date, don’t hesitate to reach out to us. We love inspiring entrepreneurs and creatives in business and look forward to helping your business grow.