The Financial year, is a period of time from July 1 to June 30, and whilst it is still a 12-month time frame, the financial year seems to go quicker and quicker, and before we know we are in Mid June, and the next financial year, is fast approaching us.
Therefore it often sneaks up on us, and at times we find in the last few weeks we are rushing around to complete all those tasks we need to complete before the financial year ends.
Often during June, we are trying to finalize our ATO requirements, our account systems, which can ensure we have limited outstanding invoices either to receive money or pay money out when the new Financial year starts. We may change our invoicing procedures for June, including invoicing regular work as early as mid-June rather than at the end, to ensure we receive payment before the end of the month. We ensure we have paid our PAYG, Super contributions, WorkCover premiums etc before the financial year is completed, although it is always beneficial to pay these as you go where possible.
We may be looking at completing our Planning for the new year, which can include ensuring we have completed our Budget for the next Financial year, remembering having a good budget, can help us understand when we need to pay our bills, get tasks completed as per the budget costs, but also helps us ensure when we need to have cash in the bank, to pay our bills, and which months we pay more out etc.
Whilst we are doing the budget process, we will be speaking with our Insurance providers, Credit Providers, Health Insurance Providers, and other consultants to ensure we are obtaining the best possible price with everything we are paying for.
We may use this time to consider our workforce planning and consider when in the new financial year, we will be hiring new staff and attempting to grow our Business, we may know when we are taking holidays, so we know when we need staff trained up by to help the business continue whilst you are on holidays.
A new Financial Year, can be a good time to start a new Account program, so if you have been thinking of trying a new account program, now is the time to do it, where possible starting a new account program during the financial year is not recommended, it is also best to start one at the start of a new financial year.
You may consider purchasing new equipment, vehicles etc, prior to the end of the financial year, to help minimize your ATO requirements, however it is recommended you speak with your Accountant prior to purchasing new items, to find out when the best time is for you to purchase new items, to maximize your ATO benefits. Too often I speak with people during my mentoring sessions, who mentioned they rushed out to buy something prior to the end of the financial year, however they placed it on credit, or caused themselves financial difficulties, as they really did not have the spare money to spend on the item, and the item was not urgent.
Any new equipment you decided to purchase, should always be included in your budget, so you know you can afford the expense, and when you can afford the expense.
The important message I can give for the end of the financial year, is to obtain the advice/ support you need as soon as possible to take your business to the next level in the new year, Budget- plan and document your income and expenses for the following year, set your Goals including Key performance Indicators to ensure your Action plans are completed.
Best wishes for the new financial year.