With tax deadlines looming, many small business owners are spending their time sorting out paperwork. It can be easy to roll straight into the new financial year without thinking twice, but if you can take a moment to step back, you might just be able to save your business time, money and effort. Here are five tips on how to prepare for the new financial year.
1 Review your business plan
As the years rolls on, it can be easy to forget the initial plan or goals that first set your business in motion. Take advantage of the new year by digging out your business plan and updating it. Have things changed since you last looked at it? Is there anything you can add or take away? Review your achievements over the past year and write down a list of realistic goals for the new financial year. Your business plan should guide you and help you make decisions long term.
2 Identify areas of improvement
Once you have your big picture goals sorted, you can take a more strategic look at your business. What is preventing you from making strides? What’s slowing your business down? How can you improve? There may be small areas of change that could make a big difference down the track. Do you need to hire more staff or outsource tasks?
Do you need to invest in cloud accounting software so you spend less hours a week doing your books? Could you be doing more to grow your business through marketing and social media? Pick one way you can improve and try to implement that change in the coming weeks.
3 Consider cost-saving measures
While the old adage is true, you have to spend money to make money, there comes a time when saving money is the way to go. A new financial year is the ideal time to review your regular costs and see if there is any way you can cut back. Review your suppliers and try and negotiate a better deal. Maybe you can look to purchase second hand equipment instead of buying new. Can you claim any of your costs as a tax deduction? Now’s the time to make changes.
4 Review your processes
Life as a small business owner is busy and sometimes it can feel like you can barely keep up with all the tasks that come with the title. Take a break from the endless day-to-day running of your business for a moment and consider your processes. Do you have any in place? Is there anything you could be doing better? Could your business be running more efficiently? Now’s the time to review your processes and consider making a change.
5 Update technology
Old software? Broken laptops? Failing phones? A new financial year is the perfect time to update your old technology. Make purchases before June 30 and you might be able to include them in your tax deductions this year, otherwise, there’s always next year. Take advantage of the famous mid-year stocktake sales or buy your equipment in bulk and ask for a discount. By sorting out your technology, you can set yourself up for success in the coming year.