Year-end business planning is part of the on-going plan of running a business – you need to keep reviewing the plan, and preparing for year-end early is the way to have a great finish! So here are the key areas to work on – do 1-2 a week to be ready by 30 June.
1. Accounts in Order
Ensure your accounting is up to date as much as possible – with modern software moving into the cloud, and bank feeds streaming the data for easy rules to be set up to speed up data allocation, the task is less of a burden each year! If you have questions, call me for FREE discussion – 0407 361 596!
2. Where are you at?
Are cost of sales in proportion to sales – if you sell product – work out the margin – what margin is typical of YOUR industry?
Is there a profit? If not – are expenses too high?
Are sales declining/struggling? If there IS profit, but cash is tight – are trade debtors (accounts receivable, clients who own you) climbing – look on your Balance Sheet? Not sure?
3. Review Financial Plan and Goals
Did you meet sales goals? Is it clear why? What can you do to improve?
Did you improve profit?
Did you lower expenses?
4. Tax plan
Too much profit? This could mean more tax. If you are selling, a good profit is essential to be attractive to a buyer.
But if not selling – maybe some expenses can be made in June – stationery, stock, pay superannuation early instead of in July – ask your accountant or us for tips.
Note – be careful – high-cost purchases such as equipment, vehicles or furniture will NOT always be expensed and reduce your profit – they may end up on your assets on the Balance Sheet – unless the $20,000 upper limit on asset write off is still available (it has been extended for another year to June 2019).
5. Owner / Director results
Determine the consequences to you the owner or partner (or Director if you have a company). What is the benefit to you? A director’s bonus (can reduce profit and company tax). Are you getting the return you wanted from your own business? Who can you seek for a review and advice – your accountant, business advisor, successful business associate/friend?
6. Review Business Plan
What parts of your plan need more attention – there are 5 Core Functions every Business must perform – Leadership, Employee/Team, Finances, Operations, Marketing & Sales – what are/is weak – no-one has it all working perfectly (even big business!) – and one area may get neglected while you focus on improving another – the key is starting to delegate regular processes to part-time virtual or in-house assistants, so you can ramp up Marketing & Sales to propel the business – otherwise who will? It’s not just about a good advert – it’s the whole plan and strategy – keep improving and find what works and sells!
Year-end business planning is an on-going plan when running a business – you need to keep reviewing the plan, and preparing for year-end early is the way to have a great finish! So to work on – do 1-2 a week to be ready by 30 June – action gets results!
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