Tips for the new financial year

Tips for the new financial year

The race to the end of the year can often mean business owners don’t feel they can take the time to plan for the new financial year. Yet effective financial planning is critical to ensure your business’ ongoing success.

Take a few moments now to complete these key time and money saving tasks:

  1. Review your products and services. Do your offerings still appeal to your target market? Check to see whether there are any products that previously performed well and have started to decline. It could be time to retire that product or find ways to refresh it. Also start planning for seasonal peaks and troughs as they apply to your business, for example, Easter, Mother’s Day, Father’s Day and school holidays.
  2. Review your pricing. If you haven’t raised prices for a while, now may be the time to do so. You should have formal price review procedures in place including responding to competitor pricing changes and specials.
  3. Review stock levels. Make sure you have enough stock on hand to satisfy anticipated demand but avoid carrying too much stock at one time. Slow-moving stock could be liquidated as bargains or bundled with other products to add value and increase turnover.
  4. Review staffing and rostering. Make sure all staff are aware of what’s required and ensure annual leave plans are finalised as early as possible.
  5. Review fraud and theft protection systems and make sure all staff understand their responsibility to be vigilant.
  6. Review debtor lists and actively chase all overdue accounts. Managing your cash flow throughout the year is vital. Make plans for collections and regular reviews.
  7. Review your debts. Overdrafts, premium funding, lease facilities and cash flow funding products can be excellent tools to help manage your finances but make sure you choose the right ones and use them effectively.
  8. Update your business plan. Make sure your business plan reflects changing market and economic conditions. Make sure it’s ready for scrutiny from any government agencies or financial institutions you deal with.
  9. Look at ways to reduce your tax burden. For example, ensure superannuation payments are made on time, both for employees and for your personal super. Review your finances in general to ensure your business is structured correctly and your liabilities are minimised.

Finally, remember that you deserve a break. Take advantage of public holidays and other time off to protect your own health and wellbeing, and reduce the chance of illness disrupting your business activities. It gives business owners the opportunity to reflect and refresh their plans without the distraction of day-to-day workload. It helps them get a fresh perspective on the business.

Speak to RSM business advisor, Andrew Sykes, should you wish to explore any of these strategies for your business on [email protected] or call 02 6217 0333.

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