EOFY (or End of Financial Year) tends to be associated with taxation and finalising your accounts for the year. There are records to complete, reports to produce, budgetary discrepancies to explain, tax returns to lodge, and possibly many meetings to attend!
The end of the financial year can also be a good time to review your business in general. This can enable you to determine what processes need to stay, what parts of the business need an overhaul and so on.
Here are some ideas for what to include in an annual review.
Review risk management and insurances
Risk management involves identifying hazards, assessing the risks they present, and taking steps to eliminate or control them.
Since risks change over time, your risk management program should be regularly reviewed, and EOFY is a good time for this.
Some areas to consider:
- What (if any) incidents or harm occurred during the year and how they could be prevented in the future.
- Whether your security systems (for both property and data) need upgrading.
- Your current fire safety practices and whether they need changing.
Insurance cover is also an important part of a risk control program as it provides financial protection in case of incidents and claims. But it can be easy to let it just keep rolling on year after year without much thought.
EOFY is a good time to review your insurance policies to determine if they still cover your needs. For example, you may need to consider whether your property and contents cover is adequate, or whether you have the right mix of liability coverages.
For this, you may need to make a time with your broker to discuss your what your current risks are and whether you need to change your policy mix.
Review marketing plans
The end of the year is a good time to review how well your marketing plans have performed over the year.
This might include:
- Looking over your campaigns to see how well they worked and whether any of them need refining.
- Considering whether your marketing goals and objectives need adjusting or changing.
- Determining what strategies you can implement in the coming year to take advantage of new opportunities.
You may also need to consider engaging with a professional marketing agency (if you don’t already do so) to help you improve your business’s marketing success.
Review your finances
The EOFY is a good time to review your income and expenditures, especially if cash flow has been a problem during the year.
Some areas to look at might include:
- Revenue collections: e.g. maybe you need to tighten your terms of trade or change how you follow up debtor invoices.
- Expenses: look for inefficiencies and consider what could be more cost effective – such as buying in bulk or finding a cheaper supplier.
- Stock: if your business has stock you might want to review how efficient your current inventory method is and whether it’s costing your business more than it should.
- Direct debits: if you have direct debits that go through automatically each month, look into whether they are still necessary and if any of them need cancelling or updating.
A professional bookkeeping service can help you with reviewing the financial management side of your business. To find out about our year-round bookkeeping services and how partnering with us could benefit your business, get in contact with us by phone or online message.