7 Steps to take now to make your next financial year better

June 9, 2023 7 Steps to take now to make your next financial year better

Are you ready to improve the performance of your business? Learn about these 7 steps for a better financial year.

When the financial year rolls to a close and you sit back and reflect on how your business went – how do you feel? Happy with how your business has performed? Disappointed? Excited about the next financial year? Worried about the next unexpected disaster?

In a challenging environment for business, it’s natural to assign blame to various factors such as economic conditions, government policies, and restrictions.  

However, in spite of these challenges, there are businesses that have not only survived but thrived. 

To help you create a thriving business here are our 7 steps to take now to make your next financial year better for your business.

Step 1: Assess Your Current Position 

Just like starting a fitness or health program, it is crucial to know where you currently stand before moving forward. Take the time to ensure your accounts, books, and accounting systems are up to date and reconciled. Prepare your end-of-year financial statements to gain a clear picture of your business’s performance, profitability, and cash position. This information will serve as a valuable benchmark for comparing against previous years and making informed decisions. 

Step 2: Sort Out Your Taxes 

Determining your tax position for the previous year is essential. Are you liable for tax payments, or are you eligible for a refund? If you anticipate a refund, lodge your return promptly to expedite the process. A swift refund can positively impact your business’s cash flow and future tax installments. It is vital to manage your tax obligations effectively, as taxation often poses a significant drain on cash flow. Communicate with the Australian Taxation Office (ATO) if you need to arrange a payment plan.  

Step 3: Set Goals for the Next Year 

Define your goals for the upcoming financial year. What level of profit do you aim to achieve? How many hours do you want to dedicate to your business? Consider factors such as cash flow, stress levels, and any necessary changes to reduce stress. Your goals will serve as the foundation for your business plan and guide the actions you need to take to achieve them. 

Step 4: Create an Action Plan 

Once you have established your goals, develop an action plan that outlines the steps required to attain them. Identify areas where you can increase sales, such as through marketing initiatives or revisiting existing customers. Evaluate whether adjusting prices or introducing new products/services can contribute to your profitability. Determine the necessary resources, assign responsibilities, estimate costs, and set deadlines for each action. Creating a specific and actionable plan is crucial for implementing and measuring progress. 

Step 5: Accountability and Implementation 

Accountability is key to ensure that your plans translate into action. Share your goals and action plan with your business associates, network, and key team members. By making yourself accountable, you increase the likelihood of following through on your commitments. Implementing your plan effectively requires discipline and consistent effort. 

Step 6: Review and Adapt 

Regularly review your progress and evaluate whether your actions are yielding the desired results. If you find that your strategy is not delivering the expected outcomes, be prepared to adjust and adapt. Seeking advice from experienced professionals can provide valuable insights, helping you identify the right direction, allocate resources efficiently, and save time and money in the long run. 

Step 7: Embrace Growth and Opportunity 

Despite a challenging business environment, many businesses have succeeded by making deliberate choices and seizing opportunities. By understanding your financial and tax position, developing a plan, and seeking guidance when needed, you can position your business for growth and success in the upcoming financial year. Embrace the chance to learn, adapt, and make next year even better. 

As a small business owner, it can be challenging to navigate the complexities of running a business, particularly in a demanding environment. By following these seven steps, you can gain clarity, set achievable goals, and develop an actionable plan to drive your business forward.  

Are you ready to take the next steps to improve your business and make the next financial year better? Contact us to discuss how we can help you develop and implement an action plan. We also offer a free business health check – a great tool to help measure where your business is at right now, so you can better plan for where you want to go.