As we head into the new financial year amidst a challenging and uncertain financial landscape, business owners face some unique hurdles. However, it is precisely during these times that proactive financial management becomes crucial in setting the stage for success in the months – and years – ahead.
Here are our top 5 tips to set your business up for resilience and a strong kickoff to the 2023-24 financial year.
- Review, Update, and Set Realistic Financial Goals
Take the opportunity to review and update your business plan while setting realistic financial goals. Consider the evolving market conditions, increased living costs, and economic uncertainties. Identify areas for growth, set realistic targets, and refine your marketing and sales plans. Being realistic about your goals will allow you to adapt to challenges while staying motivated and focused on driving your business forward.
- Perform a Comprehensive Financial Health Check and Streamline Cash Flow Management
Assess your business’s financial stability and conduct a comprehensive financial health check while streamlining cash flow management. Deep dive into your balance sheets, income, and cash flow statements to gain insights into your liquidity, profitability, and solvency ratios. Identify your key performance indicators (KPIs) specific to the business and track them consistently. This analysis will help you uncover opportunities for optimization, ensure efficient financial operations, and identify potential gaps in cash flow. Investigate opportunities to accelerate receivables, negotiate favourable terms with suppliers, and optimise inventory levels.
- Automate Financial Processes
Minimise human error and improve efficiency by implementing automated solutions for account management. An automated system can reduce mistakes and provide businesses with accurate financial reports. Additionally, you can generate more accurate and timely reporting, allowing your business to respond to issues with greater accuracy and efficiency.
- Put Customers First
To rebound from a challenging financial year, prioritise better servicing the needs of your customers or client base. Evaluate your sales strategies, improve customer service, and find ways to exceed customer expectations. Incorporate a customer-focused approach into your plans for the new financial year. Recognise that without customers, there is no business. By putting customers first, you can strengthen relationships and position your business for growth and success.
- Understand Deductions and Claimable Expenses
Given the changes in work practices, it’s important to understand deductions and claimable expenses, especially for those who have been working from home. While there may be fewer deductions for work-related travel, accommodation, clothing, and professional development, new opportunities may arise for claims related to home office expenses. Familiarise yourself with the ATO guidelines to ensure you make accurate deductions and maximise your claimable expenses.
Talk to the Experts
By implementing these proactive financial management strategies in the face of the challenging financial landscape, you can position your business for resilience, growth, and long-term success.
If you’re concerned about your business meeting the looming business and financial challenges, seeking professional guidance can provide invaluable support.
Our outsourced financial experts can assist to navigate through the complex financial landscape, without the full-time inhouse price tag. Our expertise and insights can help you adapt your financial strategies, minimise risks, and maximise opportunities for growth.
Talk to us about our customisable services, and start the new financial year with strength.