Let’s reflect on the past few years, shall we?
You’ve spent the past few years negotiating the unprecedented disruption caused by Covid.
Currently, you’re doing business in the midst of an inflation inspired, cost-of-living crisis.
And, ahead is the possibility of a recession.
What a time to be a business owner!
So, what can you do to help stay afloat, or even sail ahead full-steam when confronted by these troubled and turbulent economic waters?
Planning will help. It will help you prepare for what lies ahead and have you better prepared should the economy or other factors decide to throw you a curveball and your accountant is here to help.
But where to start?
Those who ignore history are doomed to repeat it
As dire as the opening to this piece may sound, the fact is that if you’ve managed to prosper in recent years, then you’ve probably developed a number of strategies and techniques to get you through it all and now is the perfect time to reflect on them.
How have you done it? What has worked and what hasn’t? Is your business meeting its goals and KPIs? You have experienced disruption, what have you learned and how can this knowledge be used to your advantage in the future?
Creating budgets (or forecasts) that draw on your business’s history and capitalise on your learnings is a great place to start. We have blogs available on how to budget here for both established business and start-ups and another on benchmarking – using data from comparable businesses to evaluate performance – here.
Getting the most out of your accountant
For many of our clients, the bottom line is all that matters to them. Or, at least, that’s all they feel that they have time to consider. Am I making money? Is it sustainable? If the answer is yes, then that will do.
Of course, we understand that many business owners are under pressure and have to focus on their day-to-day responsibilities and we are happy to fulfill whatever role is required of us.
But an accountant can be so much more and, much as us learning more about your business will ensure we’re providing you the optimal service and advice, you learning about us can also be hugely beneficial.
Ask yourself, do you completely understand the information we provide you? Do you know what the various acronyms and technical terms mean? Are you providing your accountant with all the information they need and is this information as accurate as possible?
If you’ve answered “no” to any of the above questions, then maybe we should have a chat. It will be worth it in the long run.
Analysing and reviewing your processes
As mentioned earlier, looking back on your past can make seeing into the future a lot more clear and help you identify approaching opportunities and challenges.
For a switched on, and most importantly, well informed business owner, seeing these before they arise is a terrific advantage to have over your competitors whether it’s identifying new income streams, acquiring new assets or anticipating changing market conditions.
And, your accountant can help guide you through this process. You want to acquire new assets? Should you finance or pay upfront? How will these acquisitions improve your performance? We are here to help you with all of this.
That said, your accountant is not a decision maker. They are a sounding board and, as knowledgeable as they may be about you, your business and industry, you will always have the final say in what direction and decisions your business makes.
Set goals and strategies to achieve them
While the financial health of your company is the foundation upon which you build your business, there are always considerations that can’t be found in a balance sheet that you should be thinking about.
Alongside your financial KPIs also consider your other goals, both business and personal. Improving your staff retention could be one. Spending more time with your family could be another.
By including these goals in your planning you can ensure that your business is working for you (and your loved ones) as much as you work for it.
Networking
Another often neglected part of running a business is the networking aspect.
We’re making money now. Why change? If it ain’t broke, don’t fix it.
We have contacts, plenty of contacts across industries who just might be interested in working with you as a client or partner. Lawyers (general legal, estate planning, litigation), Financial Planners, Mortgage Brokers, Succession Planners, IT providers, Insurance Brokers, Marketing etc. We may also have clients in a wide variety of industries that may be of interest.
In fact, across all your business, your accountant can be a vital part of your team who regularly contributes to a range of your business’s activities. We are more than BAS submitters or tax filers and we’re a resource that’s often not fully utilised.
There are challenging times ahead that will, more than likely, require thorough planning if you’re to reach your full potential and your accountant is here to help – get in touch.
