As we embark on a new calendar year, signalling the midpoint of the financial year, it’s an opportune moment to conduct a thorough business health check and ensure that you are on course to achieve your end-of-financial-year objectives.
Here are some crucial steps to take in order to successfully navigate the remainder of the year:
1. Update Cash Flow Forecast:
Delve into your business cash flow records, and revise your cash flow forecast for the upcoming months based on the data from the past six months.
Take a moment to evaluate your existing systems, particularly your inventory and invoicing processes, to guarantee they align with your anticipated cash flow requirements. Implement any necessary adjustments to enhance your cash flow.
2. Review Inventory:
If your business maintains physical stocks, now is the ideal time for a mid-year stocktake to ensure you are meeting your sales targets.
Scrutinise your projected sales goals for the next six months and confirm that your inventory levels are in sync with these targets.
3. Tax Obligations:
The mid-financial year presents an excellent opportunity to verify compliance with all your business tax obligations, including Pay As You Go (PAYG) and Business Activity Statements (BAS). Ensure that all records are current and appropriately backed up.
As a reminder for new and small businesses not yet registered for GST, assess whether you are approaching the $75,000 gross income threshold or are likely to surpass it by year-end. If so, prompt registration for GST within 21 days of exceeding the threshold is mandatory.
4. Keep Records Up to Date:
Maintaining accurate and up-to-date records throughout the year is essential. Use this juncture to confirm that all your records are in order. Consider ways to enhance or streamline your record-keeping processes, with automated software being a potential solution to reduce time requirements and minimise errors.
If you seek expert advice on effectively managing your business finances, don’t hesitate to reach out to the Hopscotch Accounting team at 1300HOP or via email at admin@haccounting.com.au. They are ready to provide the assistance you need.
