Participants at a recent workshop I held were focused on how to grow their business and make money, not end of financial year planning. This was despite the fact that June 30th is looming. They are not unusual.
But the end of financial year is a good time to lift your head above the day-to-day and consider your financial housekeeping. It needn’t take long, and it can make a big difference.
Has the last financial year been a good one? Has your business has made a healthy profit, or could things be better? Are your financial records in good order, or, like many people we meet, does your financial paperwork cause you headaches — or nightmares?
Whatever your situation, here are three things to do in the weeks leading up to 30th June.
Consult your accountant: If your business is making a healthy profit, the last couple of months in the year are the time to discuss tax planning with your accountant. This gives you time to fully consider your options and execute your decisions. While you’re talking with your accountant, also get their advice on other year-end financial tasks, such as a stock take.
Plan to improve: What if things aren’t looking so good, or you’d like to do better? Now is a good time to decide what you’ll do to improve your financial position. What will you do to improve sales and profit? It’s time for a planning session, some time with a business adviser, or a good sales book or business podcast to get you thinking.
Sharpen up your bookkeeping: Many business owners tell us bookkeeping is a challenge for them. Quite often, their accounts aren’t up to date or aren’t adequate to help make good decisions.
For instance, at this time of year you might consider paying yourself a bonus or putting money into Superannuation. But this can cause difficulties later if you don’t take into account future financial needs, such as tax bills or business debts. This means it’s important to have an up-to-date and accurate Profit & Loss Statement and Balance Sheet. These will help your accountant give you sound advice.
What if you’re not up to date with your bookkeeping? If your accounts aren’t in good order, the beginning of the new financial year is time to start afresh.
We meet lots of business owners who do their own bookkeeping. There’s a time and place for this, but there comes a time when the DIY approach will hold your business back. Your time may be better spent growing sales, managing people, implementing your plans and improving business performance. For you, it might be time to get a bookkeeper.
These days, online accounting software makes having a bookkeeper a good option for even the smallest business. If the software is properly set up, you don’t even need to enter much information, as the software extracts it directly from your banking details using ‘bank feeds’. Cloud software also allows you to input and save everything online, making it easier than ever to collaborate with a bookkeeper.
You can use the time saved to improve the sales and profit of your business. Plus, you’ll have better information to give to your accountant. It’s a win-win!
A new financial year can be a great time to make some changes in your business. Why not grab a coffee and a notepad and consider what you will do to make a change for the better from 1st July.
Subscribing to accounting software will ensure your business is always compliant with tax changes, including the government’s new SuperStream system for paying super contributions. If you don’t have online accounting software, compare the range, there’s an online accounting solution for every stage of your business.