With the end of the financial year fast approaching, it’s never too early to start planning for the upcoming fiscal year.
The end of the fiscal year is a perfect time to reevaluate your business and put processes in place to get you organised for the next one. Below are a few simple tips to help you:
How are your finances?
The best place to start is by reviewing all your financial statements from the previous 12-months. Take a look at every aspect of your business and whether there are tasks that need a new approach.
There is never a better time to streamline processes and operations than right now. By improving efficiency and reducing expenditure at the start of the new year, you will be setting your business up for more financial success in the coming 12-months.
Where can you save money?
During this review, analyse the aspects of your business where you may be able to reduce costs. There are a couple of ways this can be achieved.
Firstly, move certain tasks online. In this digital age, there is an online platform for almost every business operation. To streamline your accounting or bookkeeping operations, CashManager's software makes life a breeze.
Secondly, review all overhead costs. For many SMEs, overheads are some of the most crippling expenses, such as high rent or higher utility costs. One way around this is to tap into the remote or freelancing workforce. If you are a one-man band, you are pretty much there but if you run a small workforce, consider working remotely.
Does your cash flow need restructuring?
Unfortunately, being profitable on paper or having loads of assets and equity don’t pay the bills. For businesses of all sizes, the key to success is a healthy and positive cash flow.
Safeguarding yourself from cash flow issues is critical. There are several ways you can restructure your cash flow for next year. Firstly, update your cash flow projections. Make them realistic, these projections need to cover every aspect in which cash is either coming in or out.
Secondly, restructure your invoicing methods. Receiving full payment from your clients in a timely manner will boost your cash flow tenfold!
Lastly, understand your customers and how they pay for your services. Are they on an ongoing/ retainer payment method, where they pay a certain amount each month or are they paying a one-off lump sum?
Understanding these will help you plan and manage your cash more efficiently, and hopefully, save you from falling short of your projections.
Can you organise your books better?
What’s the state of your books? Do you run a tight ship where everything is miraculously accounted for or are you still jamming everything in a filing cabinet or shoebox?
Having up-to-date and organised records will not only make life easier, it is also critical around tax time and if you’re seeking funding from lenders or investors as it will provide a clear indication of your cash flow and financial status.
Our software is perfectly suited for organising your records and generally making life easier, especially around tax time.
Update your accounting platform
Don’t be left in the dark. Now more than ever, we have access to powerful technology that is able to make our lives easier!
There is no need to still be tracking and recording your accounts, invoices or cash flow with complicated and outdated methods. Our smart accounting software, is your one-stop shop for all your accounting, bookkeeping, invoicing and cash flow needs.
If you want to make a change to your accounting operations and start the 2018-2019 fiscal year off right, download a free trial.