With the final financial year BAS under your belt and the tax figures ready to go, now is the time to take stock of where you stand. How is your business tracking for the year ahead?
A quick financial health checklist can help you determine how well you are progressing – but what exactly are the right questions to be asking?
Here we look at three questions that should be at the top of any financial health checklist.
But first, a quick note about something that some small business owners struggle with…
Financial questions: only useful if you answer honestly!
One of the quickest and easiest ways of improving your financial position is to regularly conduct a self-auditing process.
However, it’s vital to be honest with yourself when you are assessing the performance of your business and your own financial fitness.
This is the only way you can evaluate your position and realign your financial structure to ensure you are right on track to achieve your goals.
Anyway, let’s get straight into the three questions that should be at the top of your financial health checklist...
- How is my business really performing?
Now is the time for a realistic assessment of your business performance.
With the cold hard figures right in-front of you from the previous financial year, take a step back and a proper look at the performance of your business.
What is working? What is making you the most money? What are the financial strengths and weaknesses of what you do and how can you capitalise on this information?
- Am I on track to reach my financial goals?
Where do you want to be this time next year financially?
Set your financial goals now for what you want to achieve in your business, and personally, for the next financial year.
More realistic budgets can now be set for the short-term, with your long-term goals in mind.
- Do I need professional advice or assistance?
With your figures together for the past financial year, now is a great time to get a second set of eyes on them.
If you have struggled to get the accounting in order over the past financial year or you feel there are things that could be improved with your overall financial management, now is the time to contact a professional to get you off to a flying start for the next financial year.
Now is the perfect time to assess whether you have received the financial support and advice that you and your business needed over the past year.
If you feel that there are shortcomings, start to address these now and get yourself and your business advisor on the same page for the new financial year. Professional, honest feedback is key to a strong relationship within your support network.