We are more than a month into the new financial year and well and truly on the home stretch for 2016. Now is the time for small businesses to get their finances in order. Here are three recommendations our Gold Coast accountants have for you and your business:
Re-evaluate your business plan
Every business should have some form of written business plan to help guide business decisions and accelerate strategic planning. If your business doesn’t have a plan yet, or you haven’t updated it for a while, now is the time to do so. Don’t let yourself get overwhelmed – put your goals down on paper so they are concrete and actionable. Just as important as writing your goals down is working our how you will achieve them. This means setting intermediary goals that are realistic to prevent major overwhelm, and potentially failure.
In some cases, a concrete business plan is crucial for helping to obtain business financing or investments. Some lenders require a detailed business plan before they will eve consider offering credit. There are a number of free business plan resources online that are great for getting you started. Alternatively, talking to an accountant about the best way to set up the financial structure of your business can set you on the path to a successful business plan.
Recharge your cash flow
Don’t let unpaid invoices pile up. There is no way you can maintain a sustainable business without ensuring you have sufficient cash flow at all times. Cash flow is one figure you should be checking weekly. It is also important to look at the timing of your income and expenses so that gaps can be identified and so you can plan ahead to make it through any challenges. If your business is seasonal, you may want to look into obtaining a business loan or setting money aside during busy times to avoid falling down when times are a little quieter. This is where having an accountant for your business is incredibly valuable. Accountants are able to examine trends, make predictions and advise you on how to manage your finances.
Plan for your tax
It is possible, and your right to strategically plan your financial affairs to keep your tax to a minimum. This is commonly referred to as tax planning or tax-effective investing. There are obvious and strict limits to what is considered within the letter and spirit of the law, however, it is possible to plan your investments and expenses so that you don’t pay more tax than you need to.
The most common tax planning methods include negatively gearing an investment property, through salary sacrificing or by donating to a charity to increase your claimable deductions.
It is important you consult with a professional accountant, however, to ensure that you tax planning is lawful and will not lead to bigger expenses in the future.
Now is the time to review your business’ operation. Don’t wait until it’s too late – take action today. Get in contact with BIS Cosgrove now.