As we reflect on another eventful year, it’s time to prepare to step into 2024. With the lessons and experiences from another year under your belt, you’re well-positioned to craft a proactive plan for the next 12 months.
January 19, 2024
As we reflect on another eventful year, it’s time to prepare to step into 2024. With the lessons and experiences from another year under your belt, you’re well-positioned to craft a proactive plan for the next 12 months.
No, it’s not the end of the financial year, but it’s a good idea to prepare some half-year accounts to ascertain where you’re at from the point of view of profitability and cash flow. Take advantage of the post-new year hiatus to bring your bookkeeping up to date, review your debtors and send out payment reminders with new year greetings, and, ideally, prepare your latest BAS (even though you may get extra time to lodge it this month or quarter).
Assess your half year results and compare them with the plan or budget you set at the beginning of the financial year.
The new year is a time for optimism but the current climate also necessitates realism. While you may have experienced a surge in demand and sales during the Christmas and new year period, many businesses will need to plan for a January lull, and a gradual uptick during the remaining months to June. Consider revising your budget for the second half of the financial year, based on the latest economic projections and the predictions and likely restrictions for your state or territory.
The value of a business emergency cash fund has become self-evident, if not easily attainable. Do try to set aside a small amount each month in a business savings account. This is more accessible than a term deposit, and you won’t be faced with a withdrawal notice period or early withdrawal fee if you do need to retrieve your cash.
Aim for an eventual bank deposit equal to three months of typical expenditure. Having that emergency fund could mean the difference between business survival during a short-term crisis, and closing the doors forever. The best scenario, however, is having the peace of mind of an interest-earning cash buffer that you never need to withdraw, but which allows you to concentrate on running your business with less uncertainty.
With tax time just six months away, it’s time to decide on key business investments. Choose assets that will generate more future revenue by investing in the digital side of your business, such as software in the cloud and an improved website, or service improvements resulting from an upgraded fleet or other equipment.
Rather than merely focusing on the immediate future, now is the time to return to the vision that saw you starting up your business, or taking your existing family business to new heights. Recharge your batteries by renewing your ambition and your passion.
Motivate yourself with a challenging target that may take years to complete, and then break it down into goals for smaller financial periods using SMART objectives – Specific, Measurable, Attainable, Relevant, and Time-bound.
If your business needs a financial injection to help with working capital or boost growth, your broker has a range of finance options that can be tailored to suit your specific needs.
For personalised service, the very best financial products and exceptional customer service where you really matter, look no further than the professional team at Mainland Finance
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