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Tips to prepare your business for the new financial year

Tips to prepare your business for the new financial year

Start planning ahead now to set your business up for success in the new financial year.

As this financial year comes to a close, setting aside some time to review, plan and prioritise may help you achieve your business goals next year.

By following these six steps you should be able to identify areas for change or improvement, as well as streamline and simplify some processes.

Review your finances

Start by reviewing last year’s financial statements, looking for any parts of your business that may need a new or different approach in the financial new year. Are there any areas where you can simplify processes to make your business more efficient and reduce any unnecessary expenses?

Find new ways to save money

One way to help achieve your profit goal is to reduce your expenses. Some ways to do this include:

  • Buying your most frequently used items in bulk
  • Negotiating a lower price with your suppliers and utility providers
  • Rewarding employees with non-monetary incentives – flexible working hours, for example

Manage your cash flow

A profitable business also needs a healthy cash flow to cover its everyday expenses. Keep the cash flowing in your business this financial year by looking at different ways to manage your cash flow:

  • Update your cash flow projections so you can plan for any potential shortages
  • Shorten your payment terms
  • Offer a discount for early payments

Save time

Freeing up your time can help you better focus on growing your business. Some strategies to achieve this include:

  • Setting deadlines for important tasks
  • Handling your mail only once, so you reply, delegate, file or delete at the time you read it
  • Creating templates for your frequently used invoices, emails or letters

Organise your records

Accurate record keeping is vital for meeting your tax obligations, demonstrating your financial position to lenders when you need to borrow funds and also providing a real-time overview of how your business is performing.

NetBank customers who are manually entering staff and supplier payment details can start importing these details into NetBank from a file. This can help reduce the chance of an error.

Use up-to-date technology

Switching to the latest technologies can help you manage and grow your business more easily. For example, cloud-based accounting and HR software can be handy should you want to easily give an accountant access to your records.

Platforms such as the CommBank app and NetBank for business can also help you do your banking when and where it suits you.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.