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How to plan for the next financial year
6 September 2022

September is an important month for YST. It’s our financial year end, and, with the kids back at school and the hectic holiday season over, we spend time focussing on the strategic direction of our business and planning for the financial year ahead.

In our experience, financial planning is so important, but we are often told by fellow small business owners that they don’t need a budget. That they can’t forecast what will happen and any figures will immediately be out of date. To a point that’s true. However, in our experience the most successful and resilient businesses do budget. It’s not only critical to both their long- and short-term success, but also important to focus their energy and take control of their financial future.

Here are our main reasons why:

  • It keeps them focussed on the prize.
  • Challenging themselves and planning for where they really want to be.
  • It stops them spending money they don’t have. It’s easy for those extra little costs to add up to a big overspend – the demise of many a small firm.
  • It makes them more agile. Tracking deviations to the budget means it’s easier to spot upcoming threats and act on them before it’s too late.

Our advice would be, take the time to budget. Make it visible, track actual performance against it, listen to what that tells you and adapt the budget, or the business, if you need to.

Our top tips to help you plan for the next financial year are:

Stay on top of cash flow

Your cash flow is a fundamental part of your business finances. Good management of your cash flow allows you to see what money you expect to get in each month and what you really have to pay. Once you have this you can build on it, adapt it for different possibilities and create ‘what if’ scenarios.

Maintain momentum

Reviewing your business finances shouldn’t be something that you only do once every twelve months, it should be a regular process throughout the financial year. Take time each week or month to assess your progress, plan for the future and invest in the resources you need to grow.

Maximise your resources

We would suggest investing in your employees. They’re the most important part of your business and key to your success. Creating a professional development plan for each employee will not only help them reach their own potential but will also help to fill any skill gaps so you can build a talented team that’s able to add more value to grow your business.

Use accounting software

We would recommend using a cloud accounting software like Xero. Xero is cloud based, which means you can use it from any device, whether that’s a laptop, tablet or phone. It’s an easy-to-use solution for small and medium-sized businesses and can manage everything from invoicing to payroll, preparing reports to submitting VAT returns. It helps reduce paperwork, boost efficiency and most importantly … takes the strain out of your everyday bookkeeping in a simple, secure, cost-effective way.

Xero brings everything together in a single place, so you can figure out your finances in just a couple of clicks

Ask the experts

If your budget allows it, then seek the support of an outsourced financial team like us. We can offer professional advice on how best to manage your business finances based on your specific circumstances. Knowing that your finances are being handled by a professional will allow you to focus your attention on other areas of your business.

By following these steps, we think you’ll find managing your planning for the future a lot less stressful. If you need any support with budgeting, it would be lovely to hear from you at info@yoursupportteamltd.co.uk