The start of a new financial year is the perfect time to take stock and set your business up for success.
It’s an opportunity to review your strategies, make necessary adjustments, and ensure you’re on track to achieve your goals.
But with so many competing priorities, it can be challenging to know where to focus your efforts. You want to make smart decisions that will drive growth and profitability, but you also need to manage risks and protect your hard-earned assets.
We’ve put together this guide outlining 7 key strategies to help you achieve success in the new FY. From reviewing your business structure to optimising your tax position, these tips will ensure you make the most of the opportunities ahead.
1. Review and Update Your Business Plan
Your business plan is your roadmap to success. But as your business evolves and market conditions change, your plan needs to evolve too. The beginning of a new financial year is the ideal time to review and update your business plan.
Take a close look at your goals and strategies:
- Are they still relevant and achievable?
- Do your financial projections align with your current performance and future aspirations?
Make any necessary adjustments to ensure your plan reflects your current objectives.
2. Consider a New Business Structure to Better Protect Assets
Is your current business structure still serving you well?
As your business grows and your personal circumstances change, it’s worth considering whether a different structure could offer better asset protection and tax efficiency.
Here are common structures for businesses:
Structure | Advantages | Considerations | Suitable For |
Sole Trader | • Simple, low-cost setup • Full control over decisions • Easy to change structure later | • Personal liability for all debts • Limited access to capital • Profits taxed at personal rates | • Small, low-risk businesses • Freelancers • Start-ups in early stages |
Partnership | • Shared responsibilities and resources • Relatively simple setup • Potential tax benefits | • Shared liabilities • Potential for partner disputes • Each partner taxed on income share | • Professional services (e.g. law firms) • Family businesses |
Company | • Limited liability protection • Easier to raise capital • Potential tax advantages | • Higher compliance requirements • More complex and costly setup • Separate tax entity | • Medium to large businesses • High-risk or high-growth ventures |
Trust | • Asset protection • Flexible income distribution • Potential tax benefits | • Complex setup and management • Strict compliance requirements • Potential financing challenges | • Family businesses • Investment vehicles |
For example, moving from a sole trader to a company structure can provide greater legal separation between your business and personal assets. Setting up a trust can also offer asset protection and tax planning opportunities.
Choosing the right structure depends on various factors unique to your business. Here at KeyPoint Accountants on the Gold Coast, we can help you assess your options and determine the best structure for your needs. Contact us today for personalised advice.
3. Migrate to a Better Online Bookkeeping System
If you’re still relying on spreadsheets or desktop accounting software to manage your finances, now is the time to upgrade to a more efficient and effective system. Cloud-based accounting platforms like Xero offer a range of benefits that can save you time and money while providing greater visibility into your financial performance.
Here are the top features of Xero:
Feature | Benefits |
Bank Reconciliation | • Saves time by automating transaction matching • Reduces errors through AI-powered suggestions • Provides real-time cash flow visibility |
Invoicing | • Improves cash flow with automated reminders • Enables online payments for faster settlements • Customisable templates for professional presentation |
Payroll | • Simplifies compliance with automatic tax calculations • Streamlines leave management • Facilitates employee self-service for payslips and leave requests |
Reporting | • Facilitates informed decision-making with customisable reports • Offers real-time financial insights • Enables easy sharing of reports with stakeholders |
Inventory Management | • Optimises stock levels with automated reorder points • Tracks product performance and profitability |
With Xero, you can automate many of your bookkeeping tasks, such as invoicing, bill payment, and bank reconciliation. This frees up your time to focus on more strategic aspects of your business. Plus, because your data is stored securely in the cloud, you (and your accountant) can access your financial information from anywhere, at any time.
Xero also offers powerful reporting and analysis tools that can help you gain deeper insights into your business performance. You can create custom dashboards and reports to track your key metrics, and collaborate with your advisors in real-time to make data-driven decisions.
Making the switch to a new accounting system may seem daunting, but KeyPoint can help make the transition seamless for you. We can handle the migration of your data and provide training and support to ensure you’re getting the most out of the platform. To learn more about how Xero can benefit your business, contact us here.
4. Analyse Your Market and Identify New Opportunities
The business landscape is constantly evolving, and what worked last year may not work this year. That’s why it’s critical to stay on top of market trends and look for new opportunities to grow and diversify your business.
Conduct a thorough analysis of your target market:
- What are their current needs and pain points?
- How are their preferences and behaviours changing?
Then look for ways to adapt your products or services to better meet their needs.
Consider expanding into new markets or niches as well:
- Is there an untapped segment you could serve?
- Could you offer complementary products or services to your existing range?
5. Conduct a Financial Health Check
Just as regular check-ups are essential for maintaining physical health, conducting a financial health check is important for the well-being of your business. The start of a new FY is the best time to assess your financial performance and identify areas for improvement.
Start by comparing your actual results to your budget and prior year performance. Look for trends and variances that can help you identify areas of strength and weakness.
For example, if your revenue growth has slowed, you may need to invest more in marketing and sales. If your expenses have increased faster than your revenue, it may be time to look for ways to cut costs.
Once you have a clear picture of your financial performance, use those insights to set SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals for the new fiscal year. These might include targets for revenue growth, profitability, cash flow, or other key metrics.
Partner with KeyPoint to conduct a comprehensive financial review. We can provide valuable insights, identify potential risks, and recommend strategies to enhance your financial health and drive sustainable growth.
6. Invest in Your Team and Processes
Your people and processes are the backbone of your business. Investing in their development and efficiency can pay big dividends in terms of productivity, quality, and customer satisfaction.
Consider upskilling your team through training and development programs. Through enhancing their capabilities, you can empower them to take on more responsibility and contribute more value to the business.
Look for ways to streamline and automate your processes. Are there manual tasks that could be digitised?
Consider areas where technology can make a significant impact, such as:
- Customer relationship management (CRM) systems
- Inventory management software
- Marketing automation platforms
- Project management tools
- HR and payroll solutions
Embrace technology and automate repetitive tasks, so you can free up valuable time and resources to focus on higher-value activities that drive your business forward.
7. Get Proactive About Tax Planning
Tax planning shouldn’t be left until the end of the financial year. You can make strategic decisions throughout the year to optimise your tax position by taking a proactive approach.
Start by reviewing your tax position for the current year and identifying any opportunities to reduce your tax bill.
These might include:
- Maximising deductions for business expenses
- Utilising tax concessions and incentives
- Structuring your business for optimal tax efficiency
- Timing your income and expenses strategically
- Implementing a tax-effective asset management plan
It’s also important to stay up-to-date on any changes to tax laws and regulations that may impact your business. Understanding how these changes apply to your business can help you make informed decisions and optimise your tax position.
Of course, tax planning is a complex and ever-evolving area, which is why it’s important to work with experienced professionals like the team here at KeyPoint. Work with us to develop a tailored plan that minimises your tax burden while supporting your business goals.
Seize the Opportunities of the New Financial Year
The new financial year brings new opportunities and challenges for your business. Implement the 7 strategies we’ve outlined in this guide, and you can set yourself up for success and make the most of the year ahead.
But you don’t have to do it alone. Gold Coast Accounting Firm KeyPoint Accountants is here to support you every step of the way. From business structuring to tax planning, our experts can provide the guidance and advice you need to thrive.
Contact us today to book a consultation and start planning for your best financial year yet.
