The next financial year is fast approaching – and while it may not be as fun-filled as January’s New Year festivities, it’s still an important milestone for business owners.
In spite of the challenges, your business has survived another rough year. And while you should definitely take a moment or two to celebrate, now’s not the time to take your eyes off the prize.
The new financial year is the perfect time to look ahead.
Right now, your finances are all up to date, you have the latest reports at hand, ready to review, and the lessons of the last 12 months are still fresh in your mind.
What better time to sit down and set your budget for the next financial year?
To help you get in the right frame of mind, we’ve provided a list of the top 5 things you should be thinking about as you prepare a budget for the year ahead.
5 Things To Consider When Setting Your Budget For The Next Financial Year
1. Lessons To Apply
Before you look forward, it’s valuable to spend time looking back. The lessons you learned from last year will help you set effective goals and make intelligent decisions for the next 12 months.
Think about what you did well last year. What things helped you be successful? What could you have done better? What do you know now that you wish you knew 6 or 12 months ago?
Review last year’s budget and see if you can pinpoint any problem areas. It can be helpful to sit down with your accountant at this point, too. They may have further insights that can help you create a flexible business strategy for the next financial year.
2. Staffing Requirements
How have your staffing requirements changed in the last year? Are you considering scaling up but not sure your budget can handle it? Would your business benefit from skills that you don’t currently have access to?
Remember to consider your options when deciding on a staffing budget for next year. Full time or part-time in-house staff may not be your only choice: outsourcing or hiring freelancers allows you access to the additional skills you may need without tying you into costly contracts.
By outsourcing, you can stay flexible and scale up or down as needed.
3. Ways To Streamline
When was the last time you reviewed your systems and processes? If it’s been a while, chances are there are more efficient ways to get a lot of your business tasks done.
From recruiting and payroll to inventory management and marketing, there are loads of fantastic ways to automate your processes with technology. Some of these may require an initial financial investment, but they’ll save you time and money in the long run. Allow for this in your budget for the next financial year.
4. Emergency Plans
Things may be looking up for the future, but there’s no guarantee that we won’t be hit by any more curveballs in the fiscal year ahead. Do you still have an emergency savings fund that will see your business through a few tough months? If not, make it a priority to work this into your budget.
While we’re thinking about worst-case scenarios, now is the ideal time to develop a backup plan in case things go south. You could talk to your bank about setting up a pre-approved loan or do some research on what government assistance may be available to you if you need it.
Deciding on an emergency strategy is much easier to do now than when you’re under pressure down the line.
5. Financial Management
Are you happy with the way your finances are being managed? Was it a piece of cake gathering all your end of financial year data and passing it over to your accountant, or was it a stressful, confusing, last-minute rush?
It’s important to record and manage your financials as efficiently as possible throughout the year. If you still struggle to reconcile your books, send invoices, or manage payroll, you’ll struggle to manage your business effectively.
As you create your budget for the next financial year, prioritise your financial management processes. This might mean investing in a weekly or monthly bookkeeping service package or hiring a virtual assistant to give yourself more time to take care of your vital business tasks.
If you want to give yourself a head start for the next financial year, Admin Army is here to help. We make sure that the tasks that keep your business moving are delivered on time, exactly as you want them.
Contact us today to find out more.