It can be tempting to view the New Year as a sleepy period, when not much gets done. People go on holiday; businesses shut down for the festive season; and the pace of life slackens.
However, the relatively subdued nature of this period makes it the perfect time for getting on top of your administrative backlog and setting your course for the final six months of the financial year. Think of this as your half-time break during which you can take a breather and get your strategies and plans in place for the second half.
Reap EOFY rewards with forward planning
Small-business owners sometimes take their eye off the ball during the festive season, and by the time those lazy January days have passed, February is biting at your heels. The trick here is not to forgo your well-deserved break, but to make sure you have the systems in place to run your finances with a minimum of fuss and a maximum of efficiency.
Finding the right mix of technology, including a cloud-based financial management system, can give you the flexibility to stay on top of things no matter where you are seeing in the New Year. By the pool, in the park, at the cafe, you’ll be able to check in and manage cash flow, reassess budgets, and ensure all your expenses are covered, including any tax or other statutory obligations.
This is also the perfect time to take stock and assess your position going forward. Are you in arrears with certain payments? Ascertain from your forward earning projections what you can do to manage such debts over the coming months. Is there a substantial outlay ahead you need to factor in? Look at setting aside funds to cover such costs ahead of time.
See your accountant
Another thing you could do is book an appointment with your accountant for a mid-FY check-up. This is a good way of making sure you haven’t been overlooking anything that could come back to bite you at EOFY.
Your accountant should be able to give your figures a once-over to ensure everything looks as it should. A lot of small businesses view their trip to the accountant as an annual chore, but just as it pays to have a regular medical check-up, talking with your accountant can alert you to any small problems that might otherwise become major headaches, or help you uncover opportunities to grow and improve your business.
Put simply, the groundwork you do over the New Year period could put you in a good position to come through the traditional January/February slump in better shape than ever. Give yourself a break and recharge your batteries. The best way to do that is to ensure your finances are healthy.
Nicolette Maury, Vice President and Country Manager, Intuit Australia
