How to start the new financial year afresh
While it might not sound like the most exciting task, maintaining a clear and up-to-date set of policies and procedures has numerous benefits. It ensures consistency in the way things are done by setting in place standards customers can rely on.
An easy-to-understand policy manual is also a great tool for training and upskilling staff, and it’s an objective measure for employee performance.
Manage cash flow fluctuations
It’s in the nature of small businesses to experience cash flow fluctuations, especially for seasonal businesses. For example, an accountant may need to hire an admin assistant as they get busier towards EOFY. Don’t get caught out in the new financial year – take the time to look at last year’s earnings and map any seasonal peaks and troughs so you can prepare ahead of time.
In the event of an unexpected cash flow crisis or need, lenders like Prospa provide loans up to $250k in under ten minutes, with fast approvals and funding usually within 24 hours.
Your professional financial advisor should be able to recommend the best options for you, so schedule a call with them in the new financial year.
Revise payment terms
Negotiating payment terms with suppliers and customers can make a significant change to your cash flow.
If your standard contract has 30-day payment terms, a small discount for payment within 10 days may enhance your operational finances. Conversely, you can ask vendors if you can increase payment time to 45 or 60 days to give you some breathing space, or request to start the payment term from complete delivery rather than the time it leaves the vendor.
Be sure to get your debt collection practices in order too – there’s little point to payment terms if they aren’t enforced.
Streamline your digital life
The online sphere is so critical to life that it needs a strategy, just like other operational aspects of your business. Firstly, see what can be automated: everything from a formatted cash flow calculator to a profit and loss projection tool with reminders will help you get organised.
Look at your digital subscriptions for savings and streamlining. Consider one company for your cloud-based needs, and one platform that can manage all your social media. Also consider free trials of systems to see what integrates best with your business before committing to a contract.
There’s no better time to review performance than the financial year changeover. Filling out long documents is a thing of the past, as is assigning numbers to performances.
Instead, today’s market-leading companies are using staff appraisals to focus on meaningful conversations between workers and managers. The key is to set up a system where they are regular events, rather than a yearly overview. Start speaking to your team individually and set their expectations for monthly performance reviews and career discussions for the coming financial year.
Now that you’re prepared for the new year, you can think about your finance options. Call the small business experts at Prospa on 1300 882 867 or apply online for a small business loan.
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