The 2016-17 financial year seemed to have been and gone before we knew it. How did your business perform? Did you reach your targets? Now that we’ve started a fresh year, it provides the perfect opportunity to dedicate time to reviewing your business plan and performance. Below we’ve highlighted just a few topics to get you started. Spend time on these now for the best possible financial year ahead!
Help With Cash Flow Forecasting
It’s important to plan the year ahead to ensure that your business has the cash to sustain it throughout the course of the year. A cash flow forecast can give you a bit of insight into where you think your business can be, whilst giving you an idea of when those big bills (BAS payments, insurance renewals, tax payments etc) are coming. With that information, you can have an idea of what your business can potentially spend money on in the new year, whilst giving you an idea of how profitable you will be. Online accounting software such as Xero, MYOB or QuickBooks provide a great basis for a cash flow forecast, since data is based on actual figures, available in real-time.
What Is The Ideal Structure
You have so many options as a business owner, with regards to the right business structure for you. The start of the new year presents a great time to reassess your goals, and see if the structure you are currently in is still appropriate for you. Throughout the lifespan of a business, there is often a need to move from one structure (such a sole trader business setup) to another (like a company). This is especially important now, as recent changes to tax legislation has made it less costly to move between structures. Often these changes lead to protection of your personal assets, as well as reduced tax obligations so it’s worth considering your options.
Re-Address/Write Your Business Plan
Every business owner should have goals. Your business plan can help you map a path to achieving those goals. Your goals don’t all have to be financial in nature. Maybe you are looking to spend more time at home, or even exit the business in the near future. A good business plan will not only address your goals, but also give you guidance when making big decisions throughout the course of the year. Assess what’s worked this past year, and what could do with some attention going forward.
We hope that’s got you thinking about your business plan, and given you a few topics to consider straight away. Spend time with your team to gain insights from difference perspectives on your business performance and what you’d like to achieve going forward. If you need any assistance, our accounting team are just a phone call away. Contact them for a complimentary consultation today, on (08) 9446 8588.