The start of a new Financial Year is a time to reflect on the past year and to look ahead, making sure your business is in-shape and ready for the next 12 months. It’s important you finish the Financial Year strong, but also ensure you kick off the next year on top.
1.Review your business story
How has your business changed in the past year? As your business matures and evolves, consider any developments you’ve made and if this has now changed you goals. How can you meet these goals? Often, businesses forget to look at their systems and processes. Whilst a tedious task, the long-term benefits is a business win.
2.Implement Success Measures
How do you measure your wins and losses? You and your accountant can set up measureable, key performance indicators (or KPIs) for your business to help you be specific about your goals and help you track your progress throughout the year. For example, rather than having the goal of “business growth”, set a measurable KPI of “increasing profit by 8%”.
3.Punch above your weight
You’re probably already keeping an eye on your competitors but consider competing with larger businesses. This will depend on your business position, but if you decide to try and level the playing field, you can implement strategies by either appearing bigger than you are, or selling how you are different to the big brands.
4.Cashflow is still king
Did you get your invoicing right this Financial Year? If cashflow wasn’t where you wanted it this past 12 months, consider your invoicing methods. A good system can send out automated invoices and track where your accounts are up to. If your customers have been slow to pay, look at increasing your focus on chasing up debtors.
5.Know your stuff from 1 July
The government has announced that from 1 July 2016, the threshold for a small business will increase from $2m to $10m. To be eligible as a small business entity the turnover of the business, and other business entities connected to your business, must be less than the threshold in the below circumstances:
- For previous FY
- Projected income as at 1 July 2016
- Actual turnover for the FY
The new financial year is a perfect time to think about your future nest egg. This year, the government is chipping in up to an extra $500 per $1,000 contribution for both employees and self-employed taxpayers, depending on your taxable income.
A lot of businesses make the mistake of using their accountant as someone they talk to 1-3 times a year. At RSM, we pride ourselves on providing more than just tax advice.