The end of financial year has come and gone. Hopefully you’ve successfully passed the rush of EOFY preparations and are ready to begin the new financial year with a clear head.
However, in the rush of things you may have forgotten to do some crucial business planning.
The beginning of a new financial year is the perfect time to set your business up for a profitable year of growth.
How can you do this?
Start from the big-picture and work your way down to smaller items such as tasks and processes within your business.
Not sure where to begin? Don’t worry, we’re about to share with you the top tips to get ahead for this new financial year. Keep reading!
Tip #1: Review your business strategy and goals
- Are your long-term goals clear enough?
- What worked and what didn’t in the last financial year? A
- re your goals specific enough or do you need to redefine them?
- Are you moving in the right financial direction?
Your business could benefit dramatically in the new financial year if you take the time to revisit your long-term overall strategy and make adjustments based on your review of the previous financial year.
Make sure to set short-term (3-6 months) and long-term (6-12 months) goals and make an action plan for each goal – your action plan will help you visualise just how effectively you are achieving those goals.
“A goal without a plan is just a wish.” ― Antoine de Saint-Exupéry
Tip #2: Forecast and refine your cash flow
Has managing your cash flow become a struggle?
Many businesses fail because they are unable to properly manage their cash flow.
To prevent this from happening to your business, you need to review your cash flow, forecast for the year ahead and find new ways to prevent your cash flow from falling short.
Tip #3: Re-assess your customers and marketing strategy
It’s your customers that will drive the success of your business in the long run. As Albert Einstein says, strive not to be a success, but rather to be of value.
Are your customers satisfied with your product/service? How many of those customers are loyal to your business, to your brand?
Are you attracting the right customers?
If you find that you are attracting customers that are not part of your buyer persona or customer profile, it may be time to revisit your marketing strategy and plan a re-targeting campaign.
Tip #4: Streamline your business processes
There’s always room for improvement when it comes to your business processes.
Look at every area of your business and ask yourself:
How could I make this more efficient?
For example, you may find that your paper systems are creating clutter in the office and wasting valuable time. Try going paperless.
Automation can help you drive more efficiency into your business and provide better transparency for your business processes. According to Business Franchise Australia, 80 per cent of organisations still rely on employee spend data that is manually entered by employees.
Why not reduce human error and mistakes by switching over from manual to an automated solution?
Your reporting will be:
- More accurate
- And allow you to respond to issues quicker
Tip #5: Adopt new technology
In line with streamlining your business processes, now is a great time to update your technology.
Adopting new technology such as cloud accounting or add-on solutions will save you time and reduce your overheads.
Tip #6: Educate yourself with new financial year changes
Are you aware of the legal changes that have been applied for this new financial year, such as minimum wage increase, superannuation and Single Touch Payroll?
The Fair Work Ombudsman is calling on businesses to check the new minimum pay rates that apply ahead of a new national minimum wage coming into effect from the first pay period on or after Sunday, 1 July 2018.
From this date, the national minimum wage will increase to $719.20 per week, or $18.93 per hour. The base rates of pay in modern awards will also increase.
This follows the Fair Work Commission’s announcement of a 3.5 per cent increase to the national minimum wage earlier this month.
As of July 1, Single Touch Payroll (STP) is mandatory for employers with 20 or more employees.
Tip #7: Celebrate
You’ve worked hard this last financial year, so before things get hectic again, take this time to relax.
Whether that’s booking a holiday, or taking some time off, give yourself a break. Clear your mind.
When you get back, you’ll be even more motivated for this new financial year.
We hope these tips are helpful to you to start off the new financial year strong!