New Financial Year New You

The start of a financial year always brings its own challenges and we have never experienced one like the start of FY2021. Working through the challenges of COVID-19 and the various stimulus packages provided by federal and state governments, there has never been a better time to ensure you start the new year with a new attitude.

The first step of the new financial year is to ensure your previous financial year is wrapped up, although your Company Taxes may not be due for a while, it is important to understand how you finished FY2020. There is little help to look at tomorrow if you do not know where you finished yesterday. The best way forward is always to learn from those lessons FY2020 has provided.

When discussing this with our clients they have found the benefit of monitoring and keeping on top of their financials vs. getting a report in a couple of months to show how they went, only to then realise if they had changed something earlier they could have been more successful.

Some great ideas to start FY2021 with a bang are;

Budget: have you set your business a budget for FY2021, understanding what sales you would like to achieve and what expenses are required to support those sales? It is important that you have looked at your budget and what your expectation is for the upcoming year. This will allow you to continuously adjust your strategy as you go to ensure you are taking advantage of the moment. Further to budgets it is wise to introduce rolling forecast concepts so that you can track where you are to where you will be finishing.

Technology: if you are not operating an accounting software then there is no better time than the start of a new financial year. Starting to track those sales, receivables and expenses is a great way to keep on top of your business. We have worked with many businesses that run their receivables on a piece of paper only to forget who has, and has not paid. Technology can make your life easier and more importantly give you back the time in your business to do what you do best. We can provide the best technology answers to your daily problems.

Review: make sure that your accounts are kept up to date and you agree with your accountant and / or bookkeeper on the frequency you would like to see your accounts. There is nothing worse than wanting or needing to refinance for example only to find out you are unable to obtain finance as you don’t have the right up to date reports and paperwork. Working with our clients we have found many appreciate being able to know each month how they have performed during the month which then allows them to make changes to the way they operate.

Cashflow: cash is still King! Knowing what you cash position is at any time is critical to running a great business. Reviewing your cash balance in you bank account is only a portion of your true cash position. You need to consider what are you owed, what do you owe and what upcoming statutory obligations do you need to meet.

There is nothing worse than thinking you have ample cash only to find out your next BAS or superannuation payment will wipe most of it out.

If you are not getting the right attention from your accountant or bookkeeper speak to us on how we can help you with your business. A chat doesn’t cost anything but can lead to a more efficient way of thinking and a more successful business. We have found that our clients change their perspective on their business once they are kept informed of their financials. Starting a new year with a new attitude is the way to go and become part of the Omnia family.

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