The new financial year is upon us and if you’re a business owner it can be either exciting – or daunting. With tough economic circumstances tipped to continue, rising costs and business confidence still at a plateau, what are the practical things small business owners can do to protect and grow their business in the new financial year?
Let’s take a look at some simple tips and tricks to help make 2023-24 your best year yet.
Ask Yourself The Tough Questions
As the saying goes failing to plan is planning to fail. Now is the time for business owners to sit down, take stock of the previous year and plan the year ahead. Your Profit and Loss Statement should be your guide, use it to analyse your actual costs against allocated budgets, or the previous year’s actual costs. Look in particular at your biggest expenses such as cost of goods, rent, equipment, vehicles, agreements and contracts with service and utility providers. Then systematically analyse:
-
Are you still getting value for money?
-
Can you get a better deal elsewhere?
-
Does your workspace still suit your needs?
-
Have cheaper suppliers entered the market?
-
Is it time to re-negotiate some of your supplier contracts or agreements?
-
Where did you overspend compared to the budget you had allocated?
-
What caused the overspend and how can you correct it this year?
-
Is outsourcing some of your processes a more cost-effective option this year?
In answering these fundamental questions you can identify some simple cost savings and establish a realistic budget that will be your foundation for the year ahead.
Leverage the new Instant Asset Write-Off Threshold
From July 1 the instant asset write-off threshold has reduced to $20,000. Eligible small businesses with aggregated turnover of less than $10m will be able to immediately deduct the full cost of eligible assets less than $20,000, providing they are first used or installed ready for use between 1 July 2023 and 30 June 2024.
Contact us to find out how Retinue can help you with asset write-offs.
Pay Attention To Payroll*
Employment types, record keeping, superannuation, compliance, PAYG, FBT… the list goes on. Payroll is a fundamental component of any business demanding valuable time and resources. But when was the last time you checked to make sure it was operating efficiently? New automated tools and software can streamline previously complicated payroll processes, allowing you more time to focus on running your business and doing what you do best. Set aside some time in 2023-24 to make payroll a priority.
Important: Retinue’s payroll service includes the processing of hours and wages rates provided by you. We do not determine award rates for your employees or provide advice on the correct employment status of your employees. It is your responsibility to ensure that your employees are paid correctly and we recommend obtaining advice from specialised employment relations experts.
Related: Get Your Free Guide to Managing Payroll
Encourage Early And On-Time Payments
Late payments are a perennial headache for small business owners. According to Xero’s Cash Flow Crunch, almost half of all payments made to small businesses are late, costing $1.1b each year. Negative cash flow places significant stress on any business and as we head into 23-24 now is the time to tackle those late payments and boost your cash flow. Here’s what you can do:
-
Ensure you have clear payment terms on your invoices to all customers
-
Offer discounts for immediate or early payments
-
Offer a variety of payment options
-
Consider whether payments plans or credit card payments are right for your business
-
Communication is key – set up automated reminders and follow-ups to your clients about outstanding invoices
Investigate Ways To Boost Your Revenue
In an environment of increasing inflation, when was the last time you increased your prices? Do you have visibility over your costs and margins to allow you to make better business decisions and protect your bottom line? You need accurate and timely financial information to be able to make these decisions and your accountant should be able to help you with this.
Furthermore, customer behaviours and attitudes are always evolving, and your business model should too. Thankfully in the ever-increasing digital environment it’s possible to develop new revenue streams for your business at relatively low cost. Could you collaborate with another brand? Tier some of your services? Offer a product add-on? Let 2023-24 be the year of creative thinking for your business.
Want to level up in 2023-24? Contact Retinue for tax compliance, bookkeeping, payroll* and financial insights with 24/7 unlimited support, for a fixed monthly fee, all backed by our guarantee.
Facebook
Twitter
LinkedIn
Table of Contents