Secrets Revealed: How Your Accountant Prepares Their Own Business For EOFY
Your accountant is there to support your business and help it grow. But how does your accountant prepare their own business for the end of financial year?
We will take you behind the curtain and reveal the tips and tricks that accountants use to get their business EOFY ready!
Plan For The Future
Accountants are not just interested in the bottom line; they strive to make business owners goals and dreams come true. They believe that with the right planning anything is possible. They plan for the future and then set plans in motion to make them happen. And this means setting clear goals and plans to make those dreams come true.
Here are a few things to consider when setting your goals:
- Specific – be clear about what you want to achieve, and go into detail about what that is
- Measurable – make sure the goal can be measured, so you know if you’ve achieved your goal
- Achievable – be realistic, is the goal something you have the time, money and resources to meet
- Relevant – ensure your goal is relevant to the direction you want your business to head in, for example, increasing profit, employing more staff, increasing brand awareness
- Timely – set a realistic deadline for completing the goal.
Make Sure Their Clients are Better off
An accountant will review not only their P & L’s (Profit and Loss Statements) but their clients as well to ensure that their businesses are growing and going in the right direction. When a business is growing it is more important than ever to understand where and how to invest their profits. Growth is expensive and it can make or break a business.
Some things to consider when planning for growth:
- Primary objectives (PO) – What are your 2-3 highest priority objectives for growth? One of the things that derails growth is too many goals and objectives. Most business can only focus on a couple of initiatives at any give time. As we mentioned previously you need to set goals for the future, and then prioritise and only focus on your top 2 or 3 objectives.
- Revenue streams (RS) – How can we create more streams of revenue? There are only three ways to grow: add more customers, increase the average transaction size, increase the number of purchases per customer. It is easier to sell more to existing customer than find new customers. How can you package or promote products or services together? What new markets or segments could you enter?
- Strategic relationships (SR) – What relationships do we need to develop? This is often over looked by business owners who want growth. What marketing partners could be motivated to promote and co-market your business? What joint ventures would allow you to discover new work? What vendors or suppliers could help you grow?
- Key indicators (KI) – What metrics impact our growth most? Most businesses know how much revenue they did last month and how much money they have in the bank. But by focusing on things like number of leads converted, business acquired via referral and the cost to acquire a new customer it helps you to know where to focus your energy. Knowing the path of least effort when acquiring new business allows you to take control of the things that actually impact your growth.
Ensure They Are Compliant
All accountants ensure that they are compliant at the end of the year. This means that all tax obligations have been met and they know what the owe to the ATO. This is something that is imperative when creating financial plans for the next year. This allows you to start off the new year knowing your true financial position.
If you owe money you can make a plan to clear the debt. Or if you have money coming back make new investments to continue to grow.
If you have any questions on your end of year planning, please get in touch. We offer free consultations, book in here.
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