New Financial Year, New Beginnings

With the new financial year almost upon us, now is the time when as a business owner you should be planning on how you will achieve a happy new financial year. While reaching a healthy financial position is an ongoing process, the start of every new financial year brings with it the opportunity to better plan and take positive steps towards seeing your financial goals realised. In other words, a little planning now will go a long way to seeing you stay in the black and live your dreams in the 2013 financial year.

Here are our tips for achieving a happy new financial year:

Establish where you’re at
Knowing where you are currently financially at is essential in helping you plan and reach where you want to be in the new fin year. Taking a look back at your 2012 cashflow and financial position will help you identify areas and times where your business is vulnerable and will allow you to put plans in place to help minimise any potential impact in 2013. It all bows down to knowing your numbers.

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Clean the slate
No one wants to enter a new financial year swamped in debts and financial messiness from the previous year and while some of this is unavoidable, aiming to start the new year with your cleanest possible financial slate will certainly start you on the right foot.

Where possible clear your own debts but also don’t forget to look your outstanding debtors. If you have suffered from late payments in 2012, now is a good time to re-evaluate your payment terms to ensure you don’t get caught behind in the new fin year.

Plan to kick some goals!
Beyond the your current financial position, it is also an important time to look at your larger business and personal goals to ensure that you are on track and if not, why not. Businesses, owners, goals and circumstances can change in an instant so rather than just ‘keep on keeping on’ in 2013, now is the time to look at your business and establish if changes need to be made to reflect new goals and business plans. Don’t forget to make your goals SMART (specific, measurable, achievable, relevant and time specific).

A business without a plan is a business operating with its eyes closed.

Remember, cash is King!
Once you know where you’re at and have plans for the new year it’s now the time to look at your cashflow to ensure that your money river doesn’t dry up.

Number one thing to do is create a cashflow forecast (your accountant can help you if numbers aren’t your strong suit) which will allow you to track your incomings and outgoings. Your cashflow should be checked each week to ensure you don’t fall into any financial traps. If you haven’t in the past, getting into the habit of reviewing your cashflow on a weekly basis is a great start to helping you achieve a better financial year.

Go, go go!
With your plan in place, use the remaining few weeks of 2012 to get yourself set up and ready to go live with your new financial approach in 2013. If you are unsure of any part of your financial plan, speak with your accountant. Just remember your accountant is a person who is qualified to know how to maximise your financial position so use their knowledge to help improve your own in the new year.

Happy New Year!