Starting a new financial year should also encourage you to set new financial health goals. Starting a new financial year correctly, can be crucial for setting the tone and direction for your business.
Preparation for good finances starts with good systems and proper checks and balances. Here are some tips to help you get your financials in order for the new financial year:
- Review the Previous Year’s Performance.
Take a deep dive into your financial statements, profit and loss statements, balance sheet, and cash flow. Start to identify strengths, weaknesses, opportunities, and threats. This analysis will help you understand what worked well and what needs improvement.
2. Set Clear Financial Goals.
Define specific and measurable financial goals for the new year. Whether it’s increasing revenue, reducing expenses, improving profit margins, or investing in new opportunities, setting clear goals will provide you with a roadmap for success. Make sure your goals are realistic and align with your overall business strategy.
3. Update Your Budget.
Based on your review and goals, update your budget for the new financial year. Consider any changes in revenue expectations, expenses, investments, debts, loans, or capital expenditures. Your budget should reflect your strategic priorities and help you allocate resources effectively throughout the year.
4. Evaluate and Adjust Pricing
Review your pricing strategy for products or services. In fact, you should be looking at this regularly throughout the year. Consider factors such as market trends, competitive pricing, and cost changes but also take into consideration the overall cost of living and how your customers are viewing the economy. However, being flexible and adjusting your pricing can strategically help improve profitability and competitiveness in the new financial year.
5. Ensure Compliance and Tax Planning.
Stay updated with regulatory changes and ensure compliance with tax laws and financial regulations. Tax can be a moving beast, as can insurances. Plan and budget for tax obligations throughout the year to avoid last-minute surprises. Consider consulting an accountant and/or a tax advisor who can assist you to optimise your tax strategy and take the worry out of what can be a very complex issue.
6. Use Financial Software.
As you are aware, there are many financial programs on the market that can help you manage your business’s finances more efficiently. These programs can track your income and expenses, create financial statements and even provide forecasting tools. You can utilise these tools to ensure that you’re on the right track and you are accurately projecting the future of your business as well as you can. Be aware though, some software programs are more user friendly than others, and some accountants may prefer one that interfaces with what they use. It would be worthwhile having a quick chat to a Bookkeeper or Accountant to see what they use and prefer.
7. Seek Professional advice.
You may be very confident and efficient in handling the day to day business finances, but like most things that can be outside of your subject matter expertise, it’s a good idea to seek guidance from a professional accountant or financial advisor. They can provide valuable guidance and ensure that your financial decisions are sound. Who should you consult? Do your research. Ask other successful businesses who they use. Look for someone with a proven track record of helping clients and look for financial experts with great customer reviews.
Don’t let another new financial year overwhelm you again, – start focusing on these tips at the beginning of the new financial year and also consider partnering with Hopscotch Accounting and embrace a smoother, more efficient approach to managing your business.
Contact Hopscotch today at 1300 HOP 123 to learn more about our services and how we can support your business journey.
