End of the Financial Year is an important time for businesses; completing bookkeeping, tax return and planning for a new financial year. Having the basic core structure for your business ready in advance helps you to be organised and work smarter when EOFY comes around.
To help you to get things on track, we have compiled the following tips that can turn the EOFY into a good opportunity to review, plan and prioritise your business goals and strategies for the new financial year.
Review your financials and forecast
Before anything else, it’s important to start to review your financial statements from the last year, with attention to the items where you spent the most of your income. To ensure you don’t miss anything make sure to:
- Review and reconcile bank statements
- Check account balances
- Pay off any outstanding invoices on the business account
- Follow-up with all outstanding invoices
- Claim all your deductions
- Run end of financial year reports to see what you owe, what’s owing to you, and how much has been paid so far this year
Create cash flow projections
To be successful and achieve growth, a business needs a strong cash flow to meet its everyday expenses.
It’s safe to assume that if you want your business to thrive and grow the next year you must assess the previous year’s cash flow requirements first before proceeding to make your projections. It’s important to follow this order as it makes the projections more accurate and realistic.
EOFY strategic planning
While there are numerous financial requirements to meet at the end of the financial year, it is vital that you do not neglect planning for the future of your business as part of your EOFY checklist. How did your business perform in comparison with forecasts and your projections? Take the opportunity to set your goals for the next financial year and look at ways that you can implement or improve processes and utilize technology to simplify your account keeping for the next 12 months.
With the right team, you can simplify the process. Outsourcing your accounts gives you more time for your business. A bookkeeper will add value to the business, with your team, ensure that statutory requirements are met, and help manage the cash flow of the business.
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At Hopscotch Accounting, educating our clients on their budgetary needs is paramount to their success and ours. For more information on how this budget affects you and your business, please contact Hopscotch today at 1300 HOP 123.