It’s the start of a new calendar year which marks the middle of the financial year, which is a great time to do a health check on your business to ensure you’re on track to meet your end-of-financial-year goals.
We have collated some key steps you should be taking to ensure you successfully finish the year.
Update your cash flow forecast
It’s time to thoroughly review your business cash flow records and renew your cash flow forecast for the combined months based on the data from the past six months. Take a moment to assess your current systems, especially your inventory and invoicing systems, to ensure they align with your projected cash flow needs. If needed, implement any appropriate changes to your systems to help improve your cash flow.
Review Inventory
To ensure you are meeting your sales targets if your business holds physical stocks, it’s perfect timing to do a mid-year stocktake. Review your projected sales targets for the next six months and ensure your inventory levels are matching your projected targets.
Tax Obligations
The mid-financial year is the perfect time to make sure you are meeting all your business tax obligations, including pay as you go (PAYG) and business activity statements (BAS). Ensure all records are up to date and backed up appropriately.
Just a reminder for new and small businesses that are not currently registered for GST should check if they are approaching the threshold of $75,000 in gross income – or likely to hit that threshold by the end of the financial year, you must register for GST within 21 days of exceeding the threshold.
Keep records up to date
Throughout the year, it is paramount of importance to keep your records up to date. Effective record keeping throughout the year will make reporting and tax obligations at the end of the financial year much easier. Use this time to ensure everything is up to date and in order.
Now is a great time to consider ways of improving or streamlining your record-keeping. Automated software may help with reducing the time required and minimising human errors.
Need expert advice about managing your business finances successfully?
Give the Hopscotch Accounting team a call on 1300HOP or admin@haccounting.com.au
