As end of financial year starts to draw near again, a number of tax planning and review opportunities also come around. It is a great time to look at a Cashflow Analysis of your business and undertake other profit analysis steps as well. There are many ways we can assist with this as outlined below:
Mini Review of Financial Year to Date
It’s easy to fall into the trap of ‘spend spend spend’ before 30 June in an attempt to minimise tax for the current financial year. Although there are certainly times when this can be beneficial, it can also lead to financial trouble due to overspending or by directing your precious cashflow towards expenses that are either not needed or that don’t produce the desired tax impact. The smarter approach is to take stock of your financial position for the year to date before making any spending decisions. HFB can assist by conducting a ‘mini review’ of your internally produced financial statements and discussing the tax minimisation options available to you.
Full Review of Financial Year to Date
If a mini review won’t give your business enough information to plan for end of financial year, you may prefer to arrange for a full set of interim financial statements to be prepared. This enables us to get a greater overview of your financial position and can be particularly useful if there has been increased profitability or large capital gains. It also ensures that you have a more accurate idea of the upcoming tax liability which is essential for cash flow planning for the new Financial Year. If desired, budgeting or cashflow forecasts can also be arranged to keep you on the front foot of your business planning!
A Cashflow Scorecard Report produces an automated financial health check on your business, ensuring everyone looks at your numbers in the same way…. whether you are a business owner/manager, an advisor or banker. Using powerful processes such as the ‘Power of One’, the ‘4 Chapters’ and the ‘Big 3 Cash Flow measures’ the Scorecard will enable you to understand your financial story and improve the performance of your business.
Business Benchmark Review
Research clearly shows successful businesses aren’t afraid to compare themselves to their competitors and ask the hard questions. Furthermore, businesses that do not make competitive comparisons, tend to be over optimistic about their relative position, preventing them from making realistic and fruitful changes. Benchmarking enables you to identify the strengths and weaknesses in your own business. Without this insight, you could be traveling blind and making business decisions without the right information.
If you are unsure where your business is heading – contact our office, we can help you.