OK – so it is just the end of the financial year. Nothing too dramatic, but it can still be messy if you are not prepared.
Many people roll their eyes and then glaze over when others start talking about finances and ‘year ends’. So let me reach out to you with the “heads up” you need to hear.
Too many people delegate their finances to the ‘too hard basket’ and then end up in deep water because they did not pay them enough attention. You don’t have to handle accounting matters yourself, but you have to understand the process. If you don’t understand, then keep asking questions until you do. This is particularly important for small to medium enterprises.
So here are a few things you need to do :-
- Get your accounts up to date
- Look at how you will distribute your profits
- Consider what depreciation will come into effect
- Consider if there are any significant purchases you may need to make prior to year end
- Consider if you are paying yourself a wage or a dividend
- Ensure you have enough cash on hand to pay your June BAS (you do set some money aside from each sale don’t you?)
- Talk with your accountant NOW about what you may need to do to prepare for year end
- Read your Profit and Loss and Balance Sheet statements and make sure you understand them.
If you are an employee, you won’t need to do all of these, but they are still important to consider items if you want to claim personal tax deductions and be aware of what they may be.
You may also choose to take the time to consider your financial position – your net worth, to see if it has grown since last year and what you might need to do about your prosperity in the coming year.
The business maxim of “What gets measured gets improved” has never been more relevant than to your own financial situation.
So, are you Ready For The End?
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