As we enter a new financial year, it's time to take stock of business. Now is the perfect time to look at your performance over the last 12 months. For some businesses, this will be a time of celebration. For others, it can mean a lot of soul searching.
No matter how well you did, it's time to make plans for the next 12 months – and perhaps beyond. Looking back over last year's financial data is a great starting point to help you set your goals for 2019/20.
Set new business goals
If you don't set goals, you'll have no way of measuring how well you've done come the end of the financial year.
These goals can come in all forms. Some might be purely financial, some might be about the growth of your business in a more practical sense, or you may want to measure success by how much time you take off to spend with loved ones.
Whatever target you choose, make a record of it and strive to make changes that will get you closer to achieving it by June 2020.
Speak to your clients
Sometimes, the only people who know what you're doing well (and badly) are those you do work for. Asking for feedback from past and current clients can help you to gauge where there's room for improvement, and this feedback could help you to grow your business in the future.
Keep up to date with tax law and filing deadlines
Tax laws change regularly, but most Australians don't keep abreast of this type of news. Make sure you ask your accountant about deadlines for the coming year, because if you miss any, you may have to pay a penalty.
Update your accounting software
How do you keep track of your finances? If it's with a spreadsheet or similar, you're making life much harder than it needs to be.
Online software can make your life a lot easier, make your invoices look a lot more professional and improve your relationship with your accountant no end. Xero is the leading name in accounting software, other software options include Myob, Quickbooks, Saasu and Cashflow Manager
Engage in regular financial reviews
Well-managed accounts aren't only important at tax time, they're also a handy gauge throughout the year. If– you've only made 20% of your financial target after the first quarter, this shows that you might need to do something different to meet your goals.
Knowing how much money you have at hand, how much you have coming in and what your current workload looks like can help you make better decisions, such as: Can you afford to bring in an extra pair of hands? Should you look to increase your marketing?
Talk to your accountant
If you're making financial goals for your business, it makes sense to include a financial expert in your discussions.
Accountants can quickly see areas where you can improve just by looking at your books. They don't need to know the ins and outs of your business, but by seeing how much you're spending, what your margins are and knowing what your targets are, they can give advice to help you improve your profit margins.
To get some qualified advice on how your business stands and where it could go in the future, call Active Accounting Group on (02) 4044 1245.
Are you prepared for your end of year tax meeting? Download one of our handy checklists to ensure you have everything you need to get the best results possible.