3 Tips for Small Business Owners to Prepare for the New Financial Year

As we welcome the new financial year (FY 2024-25), it comes as no surprise that small business owners like yourself are preparing for that grand reset—where all the spreadsheets, receipts and stress get a fresh start.

Being business owners ourselves, we understand that this time of year can be a little overwhelming—even after the end-of-financial year and tax chaos. To help you slip and slide into FY 2024-25, we’re sharing three tips to help you glide smoothly to get your business prepared for the fiscal year ahead.

Tip 1: Declutter your desk (and your mind!)
Remember that stack of receipts you’ve been using as a makeshift paperweight? Well, it’s time to face the music—decluttering your desk is the first step toward financial zen and of course, a clearer mind.

Here’s how:

• Receipts are friends, not fodder: Instead of shoving them into a drawer, embrace the digital age—scan and save them. Your future self and bookkeeper (yes, hello!) will thank you.

• Out with the old, in with the new: File away last year’s paperwork or if you’re a true procrastinator, create a ‘Deal with Later’ folder—just make sure ‘later’ doesn’t mean a decade from now. Capeesh?

• Channel your inner Marie Kondo: Financial clarity starts with a clear desk. Remember, fewer distractions mean fewer excuses for not tackling those spreadsheets (…they won’t tackle themselves, no matter how much you want them to!).

Tip 2: Review last year’s performance
Like everything else in life, there’s always a brighter side—the same goes for business. Analysing your business’s financial performance can be as enjoyable as watching paint dry, but it’s important, nonetheless.

So, what can you do about it? Keep it light:

• The highlight reel: First thing’s first, focus on your wins. Did you finally break even? High five, buddy! Did you sell that old inventory? Go, you! Did your grow enough so you could hire more staff? Hell, yeah! Acknowledge these moments because they’re proof that you’re doing something right (and trust us, you are).

• The bloopers: Rather than calling them the ‘pitfalls’, ‘weaknesses’, ‘red line’ or whatever else is in your vocab, face the flops with humour. Did you spend too much on office snacks? Whoops, something needed to fuel your team to overcome that afternoon slump. Did you invest in software that wasn’t right for you? Oh, well—you won’t be investing in that this year. Identify the flops, learn about it, and then laugh over it.

• The progress: Based on your review, set realistic and achievable goals—aim for progress, not perfection. After all, Rome wasn’t built in a day and they didn’t have to deal with all this financial year business.

Tip 3: Plan your budget
We might sound like a broken record, but creating a budget for the new financial year is crucial—because you’re not printing money.

Want to plan without losing your sanity?

• Forecasting is fun: Imagine you’re a weather forecaster, but for money. Predict your revenue and expenses—keeping in mind that just like the weather, finances are prone to unexpected downpours.

• Savings are sexy: Allocate a portion of your budget to savings. Whether it’s for emergency expenses or a rainy day, having a financial cushion can prevent minor setbacks from becoming major crises.

• Cut costs, not corners: Look for areas where you can cut costs without compromising quality. For example, it might be time to switch to more affordable coffee beans—just kidding, we know that was an awful example as quality coffee beans are an office non-negotiable!

Budgeting is much like dieting; you know it’s good for you, but it’s way more fun to binge-watch Netflix and order pizza. Stay disciplined but keep things light, and your future self will be grateful.

Got a burning question for us? We’d love to chat over a coffee (quality beans, of course!).
Contact your friendly neighbourhood bookkeepers here.