Is your business ready for the end of the financial year?
The first of July may seem like a while away. But, in reality, there are only a few weeks left of this financial year. And in this short period, there are quite a few things to get done, from reviewing finances and strategy to assessing if your staff are fully engaged.
So what are the most important things to keep in mind?
Financial reporting and taxes
Getting your accounting done is not just an important legal consideration, but is imperative to understanding the health of your business. Whether you work with an accountant or have an in-house financial advisor, compiling the right information will make this process progress without any hiccups.
The key things to keep records of are sales, payments, purchases and receipts.
Additionally, depending on the industry and business type, you may also be eligible for tax deductions, rebates and write-offs. Remember that once the financial year ticks over, your accountant or book keeper will not be able to help you out here, so do not wait until the final few days of June to get this sorted. Get on top of it now so you don't end the year with some nasty surprises.
"The end of financial year shouldn't be all reports and numbers."
Don't forget to look at the big picture
While it may feel that you have done so much planning all ready, it is important to set aside some time to look at how all the pieces fit together. Tim Reed, CEO of MYOB offered a helpful piece of advice about staying grounded during this potentially tumultuous time.
"The end of financial year shouldn't be all reports and numbers," explained Mr Reed.
"It's also a good time to reassess and tweak your business plan and ensure you're on the right path for next financial year."
With all of the micromanagement and technicalities out of the way, make sure you don't forget to look at the bigger picture of your business. In fact, if you have prepared for the end of the financial year in the above ways adequately, you are in a great position to understand where your business sits in strategic terms.
Update your business plan
Get out your business plan, for it's a great time to assess whether you have met your objectives and achieved the goals set out for the previous year. Your business may have changed trajectory – or maybe you think it should. Even if you think that your business hasn't evolved too much, by reassessing where you stand, you may discover new possibilities or potential projects that could really help your business develop.
Some of the most important steps in strategic planning include:
- Conduct an up-to-date analysis of your business' strengths and weaknesses and the opportunities and threats happening outside of the organisation,
- Reassess the competitive environment, and evaluate what competitors are doing now and in the future,
- Lay out some goals for the next financial year, with clear targets, budgets and dates,
- Outline exactly how you will make all of this happen.
Take on new staff to achieve your goals
Your staff are the most important asset your business has, so ensuring that they are in a good place is essential to realising the plans you have laid out. Holding performance reviews will help your staff make their own personal goals that fit within your business' plans. But this will also help you assess whether there are issues with your HR policies.
Ultimately, if growth is on the horizon, it could be time to take on new staff. However, ensuring you get the right person for the job is never an easy feat.
If you require support during any part of the recruitment process, contact Flexi Personnel to see how we can provide assistance.