NOW is really the time to be planning your next financial year

It is all well and good to focus on tax at Year End; it is what you do next that counts most.

The one and only tip for 30 June

BUDGET!

 

This time of year Newspapers are reporting “30 ways to get ready for year end”

* Do this quickly
* Hold off on that
* Pay some things now and other things later

Same old, same old! – When I had a practice 10 years ago I wrote and sent these lists annually too – in early April not mid June.
I never quite understand why these articles focus on last minute rushing around – perhaps this is a “slow news” time of year? Plus, each and every one come with a disclaimer…

The above list is generic and not tailored to your personal circumstances, so things may apply and others not, or to a lesser extent.

By all means go off to hurry about adjusting this and that; remembering that for the most part the suggestions have a significant impact on your cash-flow – any consideration of which is usually omitted in these Tips, even from their disclaimers.

OR

Consider spending the same amount of time and effort lining up your ducks instead – review (or build) a budget. A really good, really useful budget.
Simple – yes!
Boring – maybe to you right now if you haven’t used a good budget yet
Budgeting is absolutely the best way to improve your business profits and overall business value next year (and the year after and the year after that too).
There is a little known trick to budgeting, and it has nothing to do with good maths.

Budgeting is all about intention.

Most people know that the best way to succeed is to set goals and work towards them. Teaching, and giving speeches also work the same way – say what you are going to do; do it, tell everyone what you did (and enjoy the accolades).
The simple trick to Budgeting is it creates and helps you reach goals in just the same way:

  1. you decide what the business is going to do; make the plan
  2. you map out in money how the business is going to do it; make the budget
  3. you do what you planned you would; run to plan
  4. lastly you report what you have done; do the tax return






 
As you practice you can fine tune your skills and budget worksheets to get more and more accurate, moving onto forecasts and rolling budgets; even if you only write down 5 lines – one for income and a few lines of expenses you are creating a plan you can work to… be brave, make it a stretch goal. Then check your progress towards the goal monthly, you never know you might even make it!
 

Think you’ve got an Excuse?
  • It doesn’t matter that you may not know what is going to happen – put down what you would LIKE to happen – the benefit is a very clear way for you to establish your measures of success for the year to come.
  • It doesn’t matter if things change as you go through the year – you can adjust your budget to reflect new goals or challenges – the benefit is you can also clearly see the impact and outcomes of these changes and when, where and how to make management decisions to stay on track.
  • It doesn’t matter if you get it totally wrong to start with – the benefit is you will learn more about your business is actually doing, instead of acting on what you assumed your business was doing.
  • It doesn’t matter if you don’t share it with anyone – ideally you will create your budget and plans involving your team, and maybe even your customers and suppliers, to get a really clear picture and set achievable goals; but if you want to build your confidence first – go right ahead.

 
Give it a go, HAVE A PLAY, get a taste of the new power at your fingertips and grow your skills from here.
 

What are your Tips for 30 June?

Add your good new year’s tips to the comments below for all to see and use.