With the new year here, businesses across the country will be starting to think about the year ahead and how they can improve their business. It is the perfect time to reflect and look at your business’ progress, financially and operationally.
- How is your business performing compared to your expectations?
- Are you meeting your obligations?
- Are there any opportunities to improve?
Here are some things you should review to set yourself up for success in 2019:
Real Time Financial Performance
Know and understand your current financial standing
If you don’t know where your business is financially, then you are running your business blindfolded which is a recipe for disaster. Using technology, your accountant can give you monthly updates and an analysis on how you are performing against your KPIs and budget. This information can identify issues and opportunities in your business with plenty of time to adjust before the end of financial year.
Learn how your business performed against your budget
Now is the opportune time to review your budget and take control of your business. Without this, how will you really know if your spending has blown out, that sales are lower than expected, or that these things are performing better than expected?
Your budget may need to be adjusted or at least reviewed. Don’t have a budget? It’s never too late to put one in place.
Effectively manage your cash
Do you have adequate cash or finance to purchase any new business assets you have planned? Are you managing your debtors and creditors to ensure you have the cash required?
Cash is essential to ensure your business can continue operating. Review the past six months and adjust any forecasts for the next half of the financial year. A cash flow analysis will help your business grow and thrive.
Lodgement of Income of Income Tax Returns
Meet your tax obligations
Most businesses are due to lodge their income tax returns in the coming months, if not already. You should be well prepared for your tax lodgements as late payment of tax and lodgement of returns can cost your business in penalties and interest. So if you haven’t seen your accountant yet, it is time to get your tax returns in order.
Effectively manage the amount of tax you pay
Tax can be a large cost to a business. Ideally you have already met your accountant prior to year-end to plan your tax position for the new year. Depending on the structure of your business and personal circumstances, strategies may be available to optimise the tax payable or refundable.
We look forward to helping you and your business thrive. For more information, contact Murray Howlett from the Taxation Services team on (07) 3023 1300.