Set your business up for the new financial year

As a business owner, you might be spending the End of Financial Year (EOFY) doing activities like preparing your tax return, working out your deductions, conducting your stocktake or updating your records.

So while these are front of mind, it’s a good opportunity to review, plan and prioritise your business goals for the new financial year.

Here are some things to think about.

Review your finances

Start by reviewing your financial statements from the last year. Look for things like:

• Where you spent the most money
• How much you paid in fees or interest
• Any recurring subscriptions

You may spot ways you can save money over the next year. Consider whether you can buy your most frequently used items in bulk, negotiate lower rates with your suppliers or utility providers, or reward employees with non-monetary incentives like flexible working hours or an opportunity to work from home. 

Forecast your cash flow

A profitable business needs a healthy cash flow to cover its everyday expenses. Keep the cash flowing in your business this financial year by looking at different ways to manage your cash flow. Update your cash flow projections so you can plan for any potential shortages, or consider shortening or changing your payment terms.

Save time

Free up more of your time so you can better focus on growing your business. Some strategies to achieve this include:

• Setting deadlines for important tasks
• Handling your mail or email only once, so you reply, delegate, file or delete at the time you read it
• Creating templates for your frequently used invoices, emails or letters
• Automating your bank feeds straight to your accounting software

Organise your records

Accurate record keeping is vital for:

• Meeting your tax obligations
• Demonstrating your financial position to lenders if you need to borrow funds
• Providing a real-time overview of how your business is performing

Keeping your business finance separate, automating your bank feeds, and making sure your superannuation payments to staff are compliant are all ways you can keep your records organised.

Update your technology

Switching to the latest technologies can help you manage and grow your business more easily. For example, cloud-based accounting and HR software could be handy should you want to easily give an accountant access to your records.

Setting up automated feeds from NetBank to your accounting software is quick and easy.

Platforms such as the CommBank app, CommBiz and NetBank for business can all help you to do your business where and when it suits you.