One month in, the new financial year is truly here! Studies show that more than 80% of businesses will experience an economic improvement in the new financial year with the right advice. It’s never too late to start taking better care of your business, so let’s get started with some strategic advice from experts on how you can make this happen for your business.
– Draft financial statements in the new financial year based on future financial tools, including balance sheets, income statements, cash flow models as well as other critical economic indicators such as your total assets or current liabilities. With the help of a Virtual CFO you can start to plan what the new financial year will look like and any financial ‘gaps’.
– Streamline financial operations by automating as much as possible, such as invoicing and accounting. Automation tools will free up your time to focus on more critical aspects of your business, such as client services or strategic planning.
– Read financial reports regularly to make sure that all financial information is accurate and up-to-date. If data doesn’t look correct, don’t wait till the end of the quarter to investigate it.
– Develop strategic goals for the next 12 months, 24 months and five years. Get creative and dream big.
– Create a financial plan for the next five years based on economic projections of income, cash flow and expenses to achieve those strategic goals. We can help you through this process, creating a plan for right now through to 2026.
– Take care when expanding. Make sure expansion is gradual whilst communicating about changes to your team and clientele. Pushing large amounts of money into an expansion that is too quick and too drastic can be disastrous financially and staff morale. Our HR Specialists have guided many businesses through expansion plans and offer expert advice on approaching the changes as a cohesive team.
– Prepare for the future by getting into your past. Last year can help you predict what could happen in your next financial year. By identifying your challenges, whether sales, delivery, payroll or cash flow, understanding where you’ve been will help you better understand where you’re going next!
– Don’t neglect your problems or challenges, but don’t get too comfortable with them either. Use this time at the start of the new financial year to your advantage, and think about how you can improve your current business offering to become more productive. If you have an improvement idea, we will enjoy helping you implement it. We can also share insights on other businesses’ improvements that could be beneficial to your business.
Rachael Turner & the Lucent Advisory Team.