The start of the new financial year is a line in the sand that you should use as an opportunity to make your business more profitable and efficient. As a small business owner, it\u2019s important to get your finances in order and make sure you\u2019re on track to achieving your goals. Here are some tips to help you start the new financial year on the right foot:<\/p>\n
Take some time to review your business\u2019s performance over the past year. Review your profit and loss statement, cash flow statement, and balance sheet to see where your business stands financially. Ask: where did you do well? Where did you struggle? Ask what you would do differently if you had the time again and learn from your mistakes. If the problems look like they are going to come around again, figure out how you\u2019ll handle them now.<\/p>\n
Aim for a diversity of viewpoints in your reflect and review process to help you make informed decisions that will have an impact on the success of your business.<\/p>\n
Based on your review of the past year, set new financial goals for your business. Make them SMART: specific, measurable, achievable, relevant, and time-bound. (For example, you may want to increase your revenue by 20% in the next 12 months.)<\/p>\n
Once you have set your financial goals, create a budget to help you achieve them. This will help you keep your expenses in check and ensure that you have enough cash flow to run your business. Whether you need to obtain funding or adjust your prices, make sure to review your budget regularly and adjust it as needed.<\/p>\n
It is essential to plan ahead when it comes to your finances. Developing a financial plan will help you to identify and prioritize goals for the year ahead. It will also help you to measure progress as you work towards achieving those goals.<\/p>\n
Think of maintaining accurate financial records as essential data hygiene for your business. What is your current system for keeping receipts, invoices, and other financial documents in order? Does this need review as well? If you\u2019re fresh off the hard work of sorting out messy financial records, you should feel incentivised to have a better system in place.<\/p>\n
Financial software packages can take a lot of the heavy lifting out of staying on top of the day to day tasks of record keeping \u2013 and in some cases, automate it completely.<\/p>\n
It is essential that you understand and comply with all tax regulations that apply to your business. This includes registering for GST if your annual revenue exceeds the threshold, filing your self-assessment tax return and paying your tax liabilities on time. You can get advice and support from Australian Tax Office, your accountant or bookkeeper, or other business support organizations.<\/p>\n
As well as tax liabilities, consider other risks that are coming your way. Will rising costs affect your customers\u2019 spending habits? What will you do if a key contract comes to an end and doesn\u2019t renew? Bad things happen, but the storm is easier to weather when you\u2019ve got a solid plan.<\/p>\n
But it isn\u2019t all about pain: there are opportunities as well. The Australian government is constantly reviewing tax incentives for SMEs, and you should take advantage of those for which you are eligible.<\/p>\n