New Financial Year – Starting point for new systems and procedures
The start of a new financial year is the ideal time to introduce new systems and procedures into your business. Here’s some tips for keeping your business on track:
- Tax records are required by law to be kept for at least five years. A reliable accounting system makes the process easier and more readily accessible.
If you’re just starting out in business, you can record transactions manually or via an electronic system. If you’re considering an electronic system, check with your accountant and use a system compatible with that used by the accountant. This will assist the accountant and reduce your accounting fees.
Establishing procedures for invoicing and collecting outstanding debts is vital to the success of any business. Cashflow is king and having financial information readily at hand will help keep your business ‘in the black’.
- Introduce procedure manuals, or job descriptions, for the key tasks undertaken in your business. This will assist in the event of employees being absent for long periods, requiring others to take their place. Producing such manuals is also helpful in identifying gaps or duplications in job descriptions.
- The new financial year is also a good time to review contracts and agreements such as insurance, commercial leases, IT contracts, telephone plans and transport/fleet costs.
- Consider your training needs for the coming year to ensure you and your workers are up to date with skills training including trends and techniques.
- Create budgets and forecasts for the new financial year. Predicting the future of a business is not easy but having a reliable accounting system and regular forecasting will make monitoring and implementing strategies much easier.
For more information on financial management and planning for your business contact SBDC or your Accountant.