New year, new you - Tracking your business' finances effectively in 2019
People will generally make a New Year’s resolution to live a happier or healthier life but this year, the team at Rockstar Finance would like to suggest making the same sort of resolution for your business in order to help it stay in shape over the coming year.
The time is now to take a look at your business’ overall financial health and position and note where you can make some improvements. Below, we have outlined our top 5 tips that will help business owners understand what they have achieved in the past year and what you can achieve in the coming year. Rockstar Finance recommends that some of these tips become resolutions to help your business grow and prosper in 2019.
1. Review your business financials. Now.
Okay, so we understand that you still have six months before financial year end… but. You are doing your future self a massive favour if you start checking invoices and receipts now and reconciling these figures back to your bank statement to make sure the figures add up.
Good quality accounting software makes this easy for you by doing most of this reconciliation work automatically!
For those businesses that are still using traditional desktop accounting software or Microsoft Excel spreadsheets, now is a great time to consider the benefits of moving to online cloud-based accounting software. Online accounting makes it easy to access your business accounts from anywhere and at any time.
Rockstar Finance has partnered with a number of online accounting software solutions so be sure to contact us for free advice on which of these may be best suited to your business.
2. Carefully review business revenue, sales and growth results. While some business owners are still enjoying the holiday season, Rockstar Finance suggests taking some time out to reflect on the past year and asking yourself some of the following questions:
· How does your revenue and sales profits compare with the previous year results?
· Does your expenditure over the past 12 months give any cause for concern?
· Did your business grow? How or why not?
Taking in your answers to the above, try and make some understanding of how your business has changed since the end of the previous year. If the business hasn’t improved, make a list of reasons that you think why, and start to dive into the numbers to evaluate your concerns further.
Now might be a good time to get professional advice from the accounting team at Rockstar Finance. We can help you address any of your concerns and assist with establishing the coming years financial planning. Doing this will help you and your business get back on track.
3. Talk with Rockstar Finance
Do not forget that we love assisting you with your numbers just as much as we love a classic rock song played on 12-inch vinyl!
If you have your accounts up to date now, share them with the Rockstar Finance accountants for review and analysis. We would be more than happy to help you to address any errors or financial concerns, measure and improve your business performance and identify and eliminate any unnecessary costs from your business in the lead up to financial year end.
In addition, talking with Rockstar Finance at this stage in the financial year may give us an opportunity to give an estimated forecast of what your tax bill will be. It is good to have this knowledge sooner, rather than later, so that you can ensure you save an appropriate amount of cash any avoid any unpleasant surprises at tax time!
4. Stay up-to-date with relevant tax law and filing deadlines
As Australians business owners are well aware, our tax laws and regulations change on a regular basis.
Talk with Rockstar Finance now to make sure you are up to-date and understand how any changes may affect your business.
Rockstar Finance can also provide scheduled reminders as to when you will need to file and pay taxes.
5. List your goals for the coming year
Rockstar Finance can not stress enough just how important it is to set goals for your business!
Make a shortlist of your main business goals for 2019 and put them somewhere where you and your employees can see them. These goals should include sales targets, revenue targets, monthly expense budget amounts and even things such as improving business relationships with clients or generating a set-number of new customers per month.
Set goals that are realistic and achievable and do your best to work towards these throughout the year. Ensure to check-in with yourself and your staff on a monthly basis to review how you are tracking against your goals and remind your self where you want your business to go.
If you only make one business-related new-year’s resolution this year, be sure to make one that counts. Resolve to manage your accounts well and plan your business finances carefully. Make use of smart accounting software to help you keep tabs on the money flowing in and out of your business; and, seek help from Rockstar Finance to map out a financial plan for 2019. If you can stick to this resolution, your business is likely to keep growing throughout the year and into the future.