Top 5 tips for budgeting for the new financial year
With the EOFY fast approaching the new financial year is just around the corner.
1) Step off the starting blocks:
Establish what the last financial year looked like. Ask yourself what went well,
what could be improved on and what opportunities did you potentially miss or
weren’t ready for that you can consider for the upcoming financial year.
2) Work backwards:
Start with the profit you would like to make and work backwards by looking at
expenses you have, and what revenue you need to make. This can be further
broken down into the various revenue streams you have and which you
envisage, and would like, to be your focus areas.
3) Take a deep dive into your expenses:
Establish what expenses you have, which are likely to increase, which you no
longer need where you could cut costs i.e. memberships, subscriptions etc.
4) Explore how you can maximize your profit:
Knowing what you want to achieve (profit) and the costs needed to get there
(expenses), now you can consider the various revenue streams you have
within your business and how you can maximize the opportunities. i.e.
Services, products, memberships. Which ones are making the most profit, vs
which aren’t and how you can use these revenue streams to maximize your
profit,
5) Let the games begin
Now that you know what you want to achieve and how you plan to get there
and your budget is finalised, you are ready to start the next financial year with
a plan.
Communicate this with the relevant team members so the budget is a working
document which you can refer to on a monthly / weekly basis. Track, it
measure it, achieve it!
If you are wanting to work with a bookkeeper who is able to assist you finalising your
current EOFY and setting you up for success on the next, I Invite you to reach out to
me so we can have a chat and see how I can help you.
