While the end of the financial year is still a couple of months away, you need to start preparing now to ensure a smooth transition into the 2024 year for a strong financial start.

Planning ahead is crucial, especially for those with complex financial affairs, as it allows ample time to review, assess, and make any necessary adjustments to your financial strategies.

Here are my seven key areas that you should consider:

Income and Revenue Generation

For business owners this includes analysing sales trends, identifying opportunities for growth, and ensuring that all income streams are being properly accounted for. Identify any outstanding invoices or payments that need to be collected before the end of the financial year and start the process now.

Self-funded individuals and SMSFs should also review their investment portfolio and consider any potential income-generating opportunities before the end of the financial year.

Systems and Processes

Assessing and optimising business systems and processes can help improve efficiency and profitability. This includes reviewing inventory management, streamlining workflow processes, and implementing any necessary technology upgrades. Business owners should also review their staffing needs and consider any training or development programs that may be beneficial.

Data Management

Ensure that your financial records are up-to-date and accurate. Proper data management is crucial for making informed business decisions and complying with tax regulations.

Business Structure

Reviewing company and business structures is important to ensure they are still aligned with the business’s goals and objectives. Business owners should consider whether their current structure is still the most tax-efficient option and whether any changes need to be made before the end of the financial year. Keep in mind that some changes may require sufficient time to be implemented before June 30, so it’s important to plan ahead.

Directors and Shareholders

For companies with multiple directors and shareholders, it’s important to review the roles and responsibilities of each individual. This includes ensuring that all directors are aware of their legal obligations and that shareholder agreements are up to date. Business owners should also consider any potential changes to the composition of their board of directors or shareholders and plan accordingly.

Winding Up Entities

For businesses considering winding up or restructuring, it’s important to start the process well in advance of June 30. This allows enough time to complete all necessary steps, such as obtaining shareholder approval and finalising any outstanding financial matters. Winding up a business involves various legal and financial steps, and rushing the process can lead to costly mistakes.

Review of Business Context

Finally, take the time to review the context of your business and assess whether the strategies and plans you have in place are still applicable. Economic conditions, industry trends, and regulatory changes can all impact your business, so it’s important to stay informed and adapt your plans accordingly.

The end of the financial year will be upon us before we know it and by planning ahead you can ensure a smooth transition into the new financial year and set your business or financial position up for success.

As always we’re here to listen to any questions you have and provide tailored advice.