Planning for the New Financial Year as a Business Owner in Australia

Written by

Greg Bramich

FCPA, Director & Co-Founder

Resident snack monster. Ultimate Lebron fan boy.

It’s already mid July and it turns out that our parents saying “every year flies by faster” is based on… fact. The new financial year coming around so quickly means that many business owners forgo the opportunity to do some reflecting and planning for 24/25. Here are eight things to consider for the new financial year – take this as a sign to do a thorough business plan and budget review, or spend a couple of hours jotting and thinking about these points. Either way, reflection is essential for ongoing business success and financial stability.

1. Review your 23/24 performance

You know the drill – and Xero does most of the work for you. Reflect on your budgeting and forecasting for 23/24 and compare to your actual financial performance. What went wrong? What went right? And what needs adjusting for this year? Performance doesn’t just refer to the numbers. Did you achieve the goals (small and big) you’d set for yourself? How has your client/customer feedback been and where could you improve your service (have you gathered any?)? This review should serve as the platform for renewed goal setting and business planning.

2. Budgeting and Financial Planning

Effective budgeting and detailed financial planning are fundamental to the ongoing success of your business, whether it’s a small company or a large corporation. If you’ve met with us even once then you’ve heard us bang on about it – if you don’t have a detailed budget, then you don’t have a basis to make smart decisions from. This is our bread and butter and it’s what we love to do. Budgeting and forecasting may not be the way most people choose to spend their time (handball it to us, then!) but it’s business owning 101. Regularly compare your actual financial performance against the budget to identify discrepancies and adjust your business strategy accordingly. If you’re going to get stuck in, start here with Greg’s How To Create A Business Budget. 

3. Embrace Tech

Staying competitive means embracing new technologies and innovative practices in (dare we say it) every single industry. Should you be investing in new software? Are there more efficient ways to be servicing your clients that makes their lives easier, and yours? Your tech suite will be very dependent on your business’ specific needs. This is something we love to advise on. If you’re not embracing tech yet, you’re very much behind the eight ball! AI ring a bell? 😉 

4. Focus on Customer Relationships

We touched on it in the performance review pointer but in an economy where purse strings are tight and people are considering where and how they spend their money more than ever, customer relationships have never been so vital. Be the business that stands out in their mind of what great service *actually* means. Go the extra mile for them and reap the rewards. There’s no cheaper form of marketing than someone telling a mate about you over dinner.

Regularly engage with your customers through surveys, feedback forms, and social media to understand their needs and preferences, and value add. Use this information to tailor your products or services to better meet their expectations. Loyalty programs or rewards for long term customers can be a great shout for business’ this makes sense for.

5. Compliance and Risk Management

An admittedly boring point that needed inclusion. Laws and regulations are ever changing in nature so be sure to stay on top of the ones relevant to you. Obligations to employees are one of the most vital pieces here – the superannuation rate change as of 1 July is just one example. Have you completed the single touch payroll process? Are there compliance requirements specific to your industry that you need to brush up on? This is an area to seek advice in if you’re unsure because being non-compliant isn’t a good place to be (and can be very costly).

6. Invest in Employee Development

Your employees are your most vital asset. We all know how the workplace has changed post-covid. Gen Z have new expectations for employers, where and what a job entails looks different and new industries and opportunities are popping up left right and centre. Finding good people is half the battle – making sure they stay with you is the other half. Invest in them through training and professional development opportunities. Take the time to understand where they see themselves going within the business and how you can further support their career and personal goals.

7. Sustainability

Sustainable practices are a mainstay of many businesses now and the expectations of consumers on this front are only going up. Building planet friendly processes and products into your business plan will help you attract and maintain your customer base – and it’s also the right thing to do. Reducing waste, conserving energy, and using sustainable materials where possible are some of the obvious examples. It’s time to take it a step further and really breakdown every part of your operations to look at where you can improve and what makes sense to do now, and what you will plan towards doing in the near and further future.

Have you heard of Carbon Accounting? In a nutshell, it’s about using us – your numbers gurus – to understand where and how your emissions are being created. We’ve partnered with Trace to bring you a truly integrated and effective way of offsetting carbon within the business, in areas that might not have even crossed your mind.

8. Seek Business Advisory and Planning Services

Let’s face it – getting your head around all the moving parts of your business can be a bit like herding cats. That’s where business advisory services come in handy. Think of them as your secret weapon for nailing your financial year planning.

We know budgets and forecasts aren’t exactly thrilling stuff (unless you’re us – we live for this!), but they’re the backbone of making smart moves for your business. And don’t even get us started on risk management and compliance – snooze fest, right? But here’s the kicker: getting these basics sorted is what keeps you in the game and ahead of the pack.

What will you be thinking about for the new financial year? Contact us if you’d like a hand with any business advisory and planning for 24/25.