Businesses often prefer implementing new ideas and processes at the beginning of a new financial year. People tend to have more energy and focus at the beginning of a new calendar year though, therefore January is the ideal month to implement new processes and get your business finances in order for 2019. If you can start the year on a high note, it will certainly reduce the pressure building up during the year.
This is an easy financial checklist for businesses that you can apply to ensure your business finances are in order:
- Have a budget in place for the year ahead as well as forecasts for 2-5 years and 5-10 years. Most importantly though compare your actual income and expenses against your budgeted numbers and investigate any big variances.
- Review your management accounts to ensure it does include all the items and ratios you want to monitor during the year.
- Know what your break-even point is and what is required to achieve your break-even point as well as your set sales and profit targets for the year.
- Ensure all your compliance requirements are up to date i.e. annual CIPC returns, B-BEE certificates etc.
- Confirm that all your tax returns were submitted and you have verified your tax status.
- Your cash flow projections are up to date and you can constantly manage your cash flow.
- There is a process in place to immediately identify and follow up on any long outstanding debtors.
- Review your bank charges package and enquire with your bank whether there is a more cost effective package available that suits your needs.
- Update your insurance policies for any changes in the business and request quotes from other insurers to ensure you are paying competitive rates.
- Ensure that your accounting records and financial statements are up to date. The more control you have over your finances, the more informed and effective business decisions you can make.
The checklist might be time consuming to implement, but do your business a favour by implementing these 10 items. It definitely will contribute to achieve better results in 2019. It will also give you peace of mind knowing your business finances are in order. Good luck with implementing this checklist. I wish you a successful financial journey during 2019.
For your personal finances checklist, click here.
Written by: Ronel Jooste
CA(SA), Financial Consultant, Speaker and Author
Visit the website to learn more about our financial services offerings to businesses