How to make sure you start the new financial year right
As every year ends, a new one starts and many of us create a few resolutions to make ourselves and our lives better.
The same is true for each new financial year. As July rolls around, it’s a good idea to implement some new disciplines so you can set yourself - or your business - up for a solid and prosperous year ahead. Doing the same old thing year after year may not be your best course of action when a sound financial plan is needed.
Here we list our top six guidelines that will help you to start this financial year right - and end it successfully.
1. Review your previous performance
Take a close look at your performance so far this year. How does it compare to your budget? What has worked well and where have things blown out? Obviously, your planning for the new financial year will benefit significantly by avoiding anything that got a little out of control and continuing with what is working for you. Make sure you scrutinise your past performance thoroughly to build a solid foundation for the next 12 months.
It's also a good idea to review your strategic plan if you have one (and if you don’t, you might want to consider developing one). Check if you have the right resources in place and if those resources align with what you are trying to achieve. By identifying and implementing the critical things you need to put in place to succeed, you’re on the way to developing a foolproof way to start the year right.
2. Set your goals and budget
Setting your goals for the new financial year will help you to clarify what’s important, so you can focus your efforts on the essential things and not get distracted by irrelevant activities. Once you’re clear about your goals, develop a new budget that aligns with them, and that will help you to achieve positive outcomes over the next 12 months.
3. Ensure you have the necessary skills
Whether it’s just you, or you’re running a business, it’s important to review the skills that are needed to succeed. Successful people tend to have a continuous improvement mindset, and they like to spend time with successful people. That’s because success rubs off, and you can build your own skills by being around people from whom you can learn.
This coming financial year might also be the year that you want to invest in some extra education for yourself, so whether it’s an online money management course or some interior design study - whatever will improve your relevant skills is worth investing in.
4. If you have a business - make an investment plan
Making suitable investments in your business is usually a necessary component for growth. And it makes good tax sense since the Government announced it will improve cash flow and reduce compliance for small businesses by temporarily increasing the instant asset write-off threshold to $20,000 from 1 July 2023 until 30 June 2024.
Investment isn’t always going to be in assets, but if you need to update your office equipment or buy some new plant assets, it’s a good idea to include it in your planning for the new financial year.
5. Monitor your progress
No plan is going to work if you don’t monitor your progress against it, so it’s essential to monitor any blips along the way so you can take appropriate action. Get into the habit of doing this at the start of every month so you can address anything that didn’t go according to plan the previous month. There’s no point in leaving it for 6 months to check how things are going, because small things can become big things in half a year.
6. Seek professional advice
Sometimes we all need a little professional help to ensure we’re heading down the right path. If you’re not sure of the best way to get things in order for the new financial year, don’t be afraid to consult with a financial advisor, accountant, or business mentor. They can provide valuable insights and guidance specific to your circumstances.
In a nutshell
Starting the new financial year right requires a proactive approach and ongoing monitoring of your financial performance. Regularly review your progress, make adjustments when necessary, and stay informed about changes in the economic landscape that could affect you or your business.
And, if you need a little financial support to start off the new financial year, we’re here to help. Just take a look at our cash loans up to $5,000 to find out how quick and easy it is to get your hands on some extra funds. Once a loan is approved, the cash is usually in your bank account within a few hours!