Control your Finances now for New financial year
If you set yourself goals at the start of 2020, the upcoming financial year is a great time to check if you are on track.
And if you didn't set any goals - or if you have strayed off track - this is the perfect time to get organised. Write a check list and stick with it!
Don't wait until 1 July to start. Kick off now with these practical tips:
1. Set some Goals
Think about what you want to achieve this financial year. Is it to grow beyond just you in the business, to reduce your debts or to purchase more equipment?
Once you know what you're aiming for you can set and achieve your goals.
2. Understand where your money goes
If you're running out of money before you have a chance to pay those wages or your Tax obligations, you need to get a better understanding of where your money goes, so it's a good idea to track your spending.
3. Set a Budget
Get serious about managing your budget.
If you don't already have a budget, now's a good time to set one.
Your budget should show your projected income, when it's supposed to arrive, what comes out of your bank automatically and what you just take out "because I need cash to pay for something".
4. Consolidate your Debt
Now might be the time to get rid of extra credit cards and opt for a single card with lower interest rates and less fees.
If you have loans, consider consolidating those loans to manage one payment instead of multiple ones that could end up costing more in the long run.
5. Check your stock levels
If you have purchased stock on the basis of "it was on sale" and it's still sitting in the shed untouched NOW is the time to get rid of it. Consider selling those items on - it will increase your income and reduce the stock you won't use.
Provide a stocktake and a stocktake figure.
6. Review your Marketing
See what's working and what's not. Use reports to help make decisions
7. Repairs & Maintenance
Look through the account for postings - are there recurring repairs that could mean the start of a downward spiral to complete mechanical shutdown? Is it time to upgrade?
Check to see if there are double entries or incorrect entries. Look for ones with old dates or errors. Clear out any that are to be written off as bad debt. Consider offering a discount if paid prior to End June.
Check to see if there are double entries or incorrect entries here also. Old dated invoices could mean that you've paid it but entered as a spend money or credit card purchase instead of through the invoice paid. Credit out those errors - do not delete as you need a papertrail to what has happened.
Keep digital evidence of Asset purchases by scanning the document. This not only helps you find the required document if something goes wrong and warrantee is needed, but it also keeps it at your fingertips when the accountant needs to see it.