Countdown to EOFY: start planning for 2018/2019

With one week to go until EOFY you’ve more than likely got your head deep in your company’s figures – what an opportunity to start planning for next year!

Start by writing a list of all the areas in your business that you had “wins” – celebrate these accomplishments and successes, give yourself and your team a pat on the back.

Also write down a list of all the areas that you had some “losing moments” – reflect on what have you learned from these experiences and consider what plans you have in place so these moments are minimised or don’t occur again in 2018/2019.

Remember the old saying, “Mistakes are not a problem. Not learning from them is!”

Use the above as a basis for your plans and goals for 2018/2019.

I would suggest that you prepare the following budgets:

• Prepare an expense budget
• Make a sales budget

You can easily prepare sales and expense budgets using online accounting software like MYOB Essentials. See how much cash you have, your outstanding invoices and your tax liabilities in real time, so you have a clear picture of what needs your attention.

This will then assist you in the following areas of your business and will ensure success in 2018/2019

• Establish your breakeven sales level
• Figure out if an adjustment is required to your prices
• Set wages levels from 1 April

I recommend to my clients that they review their pricing and charge rates annually and where appropriate increase in line with the CPI.

1 April 2017 may be the perfect time for a change. Some clients choose to absorb some of the CPI increases in one year and increase their prices and charge rates every second year.

There are many other factors that will often dictate if your business is able to increase prices without affecting sales levels.

I strongly advocate that you do not just follow what others are doing if you feel it is not sustainable.

Value yourself and the services you provide or the goods you sell. If you would like assistance with pricing or charge out rates, contact your accountant.

“Price is what you pay. Value is what you get”. – Warren Buffett

I believe that you need balance in your life so it is so important to reflect not only on your business life but also on your personal life.

What changes can you make in 2018/2019 that will give your more balance?

In many cases, business owners are often their own worst enemy when it comes to time management, delegation of work to others and looking after our own wellbeing.

What you need to do is:

• Make a conscious decision on what you want from your business and your personal life
• Schedule time in your diary that you are unavailable for appointments or to do work
• Delegate work to staff where appropriate
• Set boundaries and stick to them!

And if you’re using spreadsheets to manage your books, now is a good time to move over to online accounting software. MYOB Essentials is easy online accounting software that has everything you need to take care of business, including payroll.

The information provided here is of a general nature for New Zealanders and should not be your only source of information. Please consult an experienced and registered tax agent as each small business’ circumstances will vary.