Simple Planning Tips for the New Financial Year

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Simple Planning Tips for the New Financial Year

At the close of each financial year, one tends to wipe their brow and hope for a smoother financial year ahead. Smoother financial years don’t just come about by chance, however. We must plan ahead and keep up with our finances throughout the year. Businesses big and small can benefit from a clear plan and careful execution in preparation for the new year. With a few simple planning tips for the new financial year, you will be in good stead to form positive financial habits, make sound financial decisions, and grow your business.

Organise Your Records

By now, you will have already set up your Single Touch Payroll system, and you can see the benefits already. This type of record-keeping you want to aim for in the year ahead. Implement methods to file and store your records in such a way that it can be done continuously throughout the financial year. Maintaining an organised filing system means no mad rush when tax season arrives. Well-filed records will also assist you if you need finance to grow your business; it will be easier to take out a loan if you have proof of your financial transactions.

Review Your Progress

Over the past year, you will have–as with many businesses–had successes and failures. It’s heartening to assess the areas in which your return on investment was the highest. While business is an iterative process, and the financial landscape is forever changing, it’s always a good idea to see where new strategies and objectives yield financial reward. This way, you have more direction, you can form goals for the year ahead, and gear your business towards strategic growth.

Update Your Software

The beginning of a new financial year is the best time to reassess whether your business is getting what it needs from your software package. Up-to-date software will help you automate processes to save you time and money overall. Updated technology is key to making incremental changes and adapting to a changing business landscape. The right software will help you track your finances and stock, manage customer relationships, and much more.

Create a Cashflow Forecast

Keeping track of your financial position and reassessing it every quarter is essential for any business. You want to create projections for varying financial commitments and cash flow levels to ensure that you are on track throughout the year. Based on your cash flow for the previous year, you can assess the funds entering and exiting your business each quarter. This will help you estimate the flow of funds through your business in the new financial year. A cash flow forecast will also help you stick to a budget and set goals for the coming year.

You have to keep your finances in check and organised consistently throughout the year, but it’s easier to maintain these good habits if you start the year with them. By the end of the year, your business will thank you for it.

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