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.
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 recordkeeping 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.