Using EOFY to strengthen your business
(source: Sean O’Meara)
With the end of the financial year quickly approaching it is critical that small business owners use this time to make a strong plan for the year ahead. It is vital to analyse your business and try to find any opportunities and improvements that can be made, no matter how small they may seem.
The additional administration time required at EOFY can make the lead up to 30 June extremely stressful. So the keep your business goals in check. Here are some strategies that will improve your business to maximise your growth in 2016/2017.
It’s time to review your businesses situation
You are probably already using reporting throughout the year to track your revenue, gauge your sales trends etc but it is important to take a second look at how your business performed on the whole and compare this to previous years.
“By looking at year-on-year sales and revenue we can see how public holidays or seasonal changes affect the business and enables us to do more accurate forecasting, rostering and budgeting for the year ahead. It also helps us make informed decisions on whether to spend now or later,”
Take advantage on the low interest rates
Interest rates remain low so it could be an opportunity to invest in capital equipment and paying off debts.
Review business partners and suppliers
Ensure you are getting an excellent price for quality products. New businesses keep coming into the market, so be sure to do your research and renegotiate with your present partners and suppliers.
Your customers are probably reviewing their own strategic plan and making changes for next year so don’t forget to let them know that their business matters to you.
Take a long – term view of your cashflow
- How is your cashflow?
- Is your business seasonal, with peaks and troughs?
Do some advanced planning -review your budget and anticipate what may happen in the year ahead. It may be all that is needed to free up liquid assets and ensure ongoing profitability. This is the best way to ensure you have safeguards in place to keep your business afloat during low times.
Capitalise on tax breaks
- Have you any expenses that can be pre-paid?
- Think about maximising your superannuation contributions to the relevant caps.
- Consider investing in areas that will support your business; new equipment and/or technology that will provide your business with greater efficiencies and productivity The Government still has an immediate tax deduction on assets coasting less than $20,000.
Don’t hesitate to give us a call if you would like to discuss anything EOFY’s.
The Team at McAdam Siemon