6 Effective Ways To Be On Track This Financial Year
In business, the start of a new financial year is often a time for reflection. It’s the perfect time to take stock, make sure your business is on the right track and double-check you’ve learnt from any past mistakes.
If you’re taking the time to look at your business, here is a handy checklist to help keep you on track:
Sit down with your accountant, bookkeeper or financial planner and have a frank conversation about whether you hit your targets for the past year. If you did, congratulations; if you didn’t, it might be time to reassess your business model. Be open to doing this. Many of the most successful businesses in the world today didn’t get it right the first time.
2. Update your plans
Take a close look at your business and marketing plans. Do they still work for you? Are they out of date? If they need updating, spend the time and money required to turn them into working documents that will be an asset for your business.
3. Back up and secure your files
If you have no time to run a backup of all your systems, then employ someone to do it for you — and make it a priority for them. If you lose all of your information, you will be absolutely lost. Back up and protect your business. It’s crazy not to.
4. Review your spending
Take a close look at your bills, including your insurance coverage. The work you do may have changed and therefore you may not need the same insurance policies anymore. Rationalise them — but make sure you have the coverage you need. Look at your phone and internet plans and see if you can save money. Are you using all the services you pay for?
5. Budget and cash flow forecasts
Where do you want your cash flow to be in one, five and 10 years’ time? Many business owners are so busy actually running their business they haven’t worked out a cash flow forecast for the future. Yet it’s so important because it maps out a path for your business and shows you what you can achieve. Invest in some budgeting and forecasting software and talk to your accountant.
6. Make time
When you’re a small business owner, you’re often time poor. But make an appointment with yourself in your diary to go over your business model at the start of every new financial year so you know where you are and what your goals are for the year ahead.
It’s a cliché, we know, but it’s true: You can’t know where you’re going, if you don’t know where you’ve been.
Reep’s accounting software can help you organise your business, including budgets and cash flows. For more information, visit our website.