The end of financial year (EOFY) is a busy time for business owners; you're probably preparing tax returns, figuring out deductions, maybe doing stocktake and updating your records. While businesses housekeeping is front of mind, its a good idea to review other parts of your business as well. Here are our top 5 things businesses should review for the financial year:
1 - Analyse your finances
Reviewing your financial statements from the last year is a great way to understand how your business operates and where your main expenses lie. Looking for your biggest expenses, where you paid the most in fees or interest, and re-evaluating subscriptions. Doing this may help you figure out where you can save money, and what expenses are worthwhile paying.
2 - Forecast cash flow
This is a crucial step in ensuring business success in the coming year. A solid business needs sustainable and healthy cashflow to cover everyday expenses, so learning how to better manage cash flow is key. If you update your projections you can account for potential shortages that may occur
3 - Update business technology
For many business owners, technology can be a huge pain when it comes to finding cost effective equipment that doesn't break down every week. Business technology is a hefty investment, but its just that, an investment. Having up to date tech allows you to manage and grow your business easily, and in the Covid era, makes you more flexible to working from home arrangements. New hardware might not be required, but looking into new software and automated systems may help save you time and money in the coming year.
4 - Re-evaluate your marketing plan
Marketing is a cornerstone of any business, it communicates who you are to your customers/clients and is often the first impression they have of your business. Refreshing your marketing your marketing plan may consist of changing your messaging, adjusting your target audience or re-designing the business aesthetic altogether. The most important thing is to look at your current position and re-evaluate if it still serving your business needs and representing you accurately.
5 - Do the thing you've been avoiding
We hate to say it, but you should really do that thing you've been avoiding. Every business owner has something they've put on the back burner all year because it wasn't a priority or they didn't have time. This is your cue to do the thing you've been putting off, and start the new financial year with a clean to do list.