Many people set personal health and fitness goals as new year's resolutions. However, many do not consider their businesses health and fitness goals. The beginning of the year is a great time to reflect on the past twelve months and prepare for the next. Here are 5 useful accounting tips to help get you and your businesses finances up-to-date and ready for the year.
1. Review your financials
It may not be the financial year end for your business yet. However, it doesn't hurt to go through all those sales receipts and invoices now, and check your bank account to make sure the figures add up.
2. Talk to your accountant/financial planner
One good reason for getting your accounts in order now is so you can share them with your accountant for checking and to discuss the health of your business. It will also allow us to give you an estimate of what your future tax bill will be. It's good to have that information sooner rather than later, as it allows you to save the right amount of money and avoid any unpleasant surprises.
What is the end goal? How much do you need for retirement? How are we going to get you to your retirement goal?
3. Review growth, revenue, sales goals and expenses
Take some time to reflect on the past year and ask yourself some important questions:
- Did your business grow?
- How did your revenues and profits compare with the previous year?
- Are your sales trending up?
- Does your expenditure over the past 12 months give any cause for concern?
- If you made a list of goals last year, did you achieve them?
Try to understand how your business has changed since the end of the previous year. If it has grown, why? If it hasn't, why not?
Review how you are tracking against budget. Where can you improve?
Now is a good time to get professional advice from an accountant. We can also help with the coming years' financial planning/budgeting. This will help you get on the right track.
4. Update your payroll
Be sure to update your internal systems, such as online payroll. Ensure you are ready for Single Touch Payroll (STP) which for many businesses will commence from 1 July 2019. Items to consider include:
- Handing out bonuses.
- Pay employees electronically (pay your employees by direct deposit to save everyone time, money and resources.)
- Reviewing employee status (make sure you know the difference between an employee and an independent contractor or consultant. Check the status of all your employees. If you get this wrong it will cost you money – and you may be penalised by the government.)
5. Get your accounting software up-to-date
It's hard to take a step back and evaluate your accounting software when you're busy using it on a daily basis. Therefore this time of the year is a good time to consider whether it's working for you.
If you're using traditional desktop accounting software or Excel spreadsheets, think about the benefits of moving to online accounting and using the automation that come along with it. Online accounting makes it easy to access your business accounts from anywhere, at any time, using a laptop, tablet or smartphone.
We can assist you with working out which accounting software might be suitable, then try it out.
If you need any assistance or have any questions regarding the above, please do not hesitate to contact Ben Silby on 08 8110 6400.