Business Finance 101 – Year End Business Planning – Checklist – Preparing for a Great Year End!


Business Finance 101 – Year End Business Planning – Checklist – Preparing for a Great Year End!
Year End Business Planning – Checklist – Preparing for a Great Year End!

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 a burden each year! If you have questions, call me for FREE discussion – 0407 361 596!

2. Where are you at?

Print the Profit and Loss and Balance Sheet – read them! Not sure how they work? See our explanation Profit and Loss and Balance Sheet.

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 – stationary, 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 form 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!

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much!

Or ask a question

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia

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