As 2019 comes to a close, now is a great time for businesses to reflect on achievements and challenges they faced over the past year and prepare for what’s ahead. To help you prepare for the new year we have put together a few tasks to add to your to-do-list:
Review and create new goals
This time of year, is a perfect time to review your short-term goals achieved throughout the year, as well as looking at the challenges or negatives you incurred along the way. It’s important to understand when these challenges took place and what you did to resolve them, to give you the opportunity to prevent these from happening again in the new year. Acknowledge these challenges, but don’t stew on them. Celebrating your achievements is extremely, if not more important, as it boosts team morale and allows you to replicate what worked. Whilst reviewing your business’s short-term goals, update or renew your business plan to ensure it’s relevant and still in line with your long-term goals.
Make sure you have lodged your EOFY accounts
Your business’s lodgement date depends on the type of business and your circumstances. If you haven’t yet lodged your accounts, why not get ahead in the new year and lodge these prior to the cut-off date. This will ease the application process if you require finance early next year. For more information on key lodgement and payment dates speak to your accountant or head to the ATO website here.
Ensure your business financials are in order
It is essential for businesses to ensure that their finances are always in order and you are across all areas of the business. Using a 3-way forecast model can assist in this instance as it provides visibility across the entire business, looking at the profit and loss, cash flow, and balance sheet. The following video explains more on the benefits of a 3-way forecasting and how it can assist the management of your business.
Prepare financial statements
Prepare your business for finance and have your financial statements ready to go. This will ease the process when you apply for finance and put you in a good position to secure funding. Even if you don’t require finance right now, up-to-date financial statements can assist if you’re gearing up or if you have had a poor 18-19 and you need to demonstrate a turnaround in performance.
Be agile and stay across the industry
You may have a business model that is working and has done so for many years, however it’s important to never lose sight of what’s happening around you in your industry. Are there any new entrants? What is their unique selling proposition? Is there new technology available? Or new and improved programs to make your processes more efficient?
Being agile and constantly reinventing your business model is key to ensure you continue to meet customer needs and expectations. Along with continuing to educate yourself and your staff, because different industries are continually evolving and businesses who ignore, or don’t keep up with these changes, will be negatively impacted in the long run.
If this article has sparked any questions, please contact your Ledge Finance Executive directly or contact our offices here and we will be more than happy to help.