We are all aware how hectic this time of year can be, especially for small business owners, but have you considered your approach for the new financial year? With new business opportunities a plenty it is vital to be prepared. Why not hit the ground running with these awesome tips for setting goals!
Review The Previous Year – This is the perfect time to reflect. Consider the challenges, changes and improvements you made throughout your business, and what you may face in the New Year. With help from your accountant you can review how your business performed financially then discuss how you can move forward.
Stick to Your Budget – Many small businesses struggle to stick to a budget. Impulse and panic buys can lead to financial turmoil, and too strict a budget can put a stopper in business growth. It is vital to monitor spending and have a realistic budget in place that is in line with your future goals.
Cash Flow Control – Cash flow is the money you have readily available to cover expenses. It is the lifeblood of your business as having no money could potentially result in your business shutting down. Talk to your accountant to work out a plan to control your cash flow that goes hand-in-hand with your budget.
Monitor Your Margins – Start off by comparing your profit margin to your industry’s average. This will assist you in determining where you stand and how you can plan to achieve this standard. Some of the ways to do this include reducing the cost of production/service or by raising product/service prices.
Save, Save, Save! – Saving money wherever possible will of course benefit you, and your business. Being both price sensitive and alert when spending will allow you to consider new opportunities to save. The new tax benefits released within the 2015 budget for tradies is a perfect example. After all, every dollar counts!
Drop That Debt – Debt is a major factor for small to medium businesses so if you haven’t created one already, discuss with your accountant a financial plan based around eliminating or reducing your debt.
These tips and goals can seem straight forward and logical but when the year is speeding past and work is stacking up it is very easy to forget carefully made plans. That’s where we can help. Create your financial goals for the New Year with Tradies Accountant and let us ensure that your business stays on track to achieve them.