Five steps to save time and money in the new financial year
The end of the financial year is a great time to review the past year of your business and make changes to set yourself up to save money in the new financial year. We have listed 5 key things that you can do now to improve your performance in the next financial year.
1. Review monthly subscriptions and pay annually before the end of the financial year
Pay as many of your expenses before the end of the financial year to minimise your tax bill. By paying annually rather than monthly, you will usually save yourself money and it’s surprising how quickly it all adds up. Most companies offer a 10% discount for upfront payment. First, check that you use the service and will be continuing your subscription. Can you get a better deal by using another company and save money in the new financial year?
This is also the perfect time to review other services you are paying for. Do you still use them? Are there any you can cancel? It’s easy to forget about the odd $20 or $50 per month subscriptions but they all add up and if you are no longer using the service this can be a great way to cut costs.
2. Consider cloud accounting for the new financial year
There are lots of cloud accounting options to choose from, all come with different add-on’s and facilities, so there is bound to be one that is right for you and your business. Cloud accounting software is a great way to save time and money on your accounts and makes managing your finances easier than ever before.
With packages from just $40 per month it’s not a big investment. Time and cost savings on your account preparation will easily outweigh the cost of the service.
Cloud accounting software also provides you with a range of reporting and monitoring tools that will make managing your business far easier and help you improve your business performance.
Some key benefits
- No spreadsheets and end of year panic
- Better communication and up to the minute advice from your accountant
- Real-time reporting and knowing exactly where you are financially
- Being able to access your accounts, invoice for work and reconcile your accounts anytime, anywhere using any device that can connect to the internet.
3. Outsource those small, nagging projects
Start the new financial year on the right foot. Get all those little projects completed before the end of the financial year or hire someone to do them for you early in the new financial year. This will save you time and effort trying to fit these in around managing your business, leaving you free to focus on growing and improving your business.
4. Purchase any small assets or consumables
Are there any purchases you need to make for the new financial year? Now is a great time to make them as they can be claimed on this year’s tax. Think through all of your business processes. Could you do them more efficiently and effectively by investing in new technology or tools? If so, now is the time to purchase them to save money in the new financial year.
5. Review your financial position and plan for next year
Now is the time to lay down your plans for the new financial year. What do you want to achieve, where do you want your business to be this time next year? Meeting with your accountant can be a great way to get assistance in making a proper plan for maximising your chance of success. This is also the perfect time to review your achievements from last year. What went well, what could have been done better? Learn from your experience and let it inform your plans for the new year.
This is also a great time for a financial health check – plan your cashflow for the new year, identify any potential shortfalls and plan for them now.