- Review the previous financial year: Take the time to evaluate your financial performance in the previous year. Analyse your income, expenses, and investments. Identify areas of improvement and success to inform your strategy for the upcoming year.
- Set financial goals: Determine your financial objectives for the new financial year. These goals can include increasing revenue, reducing expenses, expanding your business, improving profitability, or investing in new opportunities. Make sure your goals are specific, measurable, achievable, relevant, and time-bound (SMART).
- Create a budget: Develop a comprehensive budget for the upcoming financial year. Estimate your expected income and allocate funds to different expense categories, such as wages, marketing, operations, research and development or any other areas you find important in your business. Consider factors such as inflation, anticipated changes in the market, and possible regulatory requirements related to your industry.
- Review ATO laws and regulations: Stay informed about any changes in tax laws and regulations that may affect your business or personal finances. Familiarise yourself with any new compliance requirements, deductions, exemptions, or incentives that could impact your financial planning.
- Seek professional advice: Consult with a financial advisor or accountant who can assist in tax planning. They can provide guidance on optimising your tax strategy, identifying potential risks, and suggesting appropriate changes to make within your business.
- Review your business structure: Assess the structure of your business and consider whether it aligns with your long-term goals and the changing business landscape. Review your legal obligations, licenses, permits, and compliance requirements to ensure you’re operating within the law.
- Assess insurance coverage: Review your insurance policies, both personal and business-related, to ensure they adequately protect your assets and mitigate potential risks. Consider any changes in your circumstances or business activities that may require adjustments to your coverage.
- Update financial systems and processes: Evaluate your financial systems, software, and processes. Determine if any upgrades or changes are necessary to improve efficiency, accuracy, and reporting capabilities. Implement appropriate accounting software and tools to streamline financial management.
- Monitor cash flow: Establish a robust cash flow management system to monitor your incoming and outgoing funds. Regularly review your cash flow statements to identify trends, potential issues, or opportunities for improvement. Maintain a cash reserve to cover unforeseen expenses or economic downturns.
- Stay informed and adapt: Keep yourself updated on economic trends, market conditions, and industry-specific developments. Be prepared to adapt your financial plans and strategies as needed throughout the year to respond to changing circumstances.
Remember, it’s crucial to tailor your planning to your specific circumstances, goals, and risk tolerance.
If the above steps seem a little overwhelming, that’s where the team at Avoda can help. For our clients we offer tax planning consultations so you can plan accurately and help minimise the tax paid in your business.