New FY resolutions: ideas for a stronger FY22

By David Downie, Partner at Allworths

It’s the beginning of the new financial year and we’re looking forward to getting our new FY resolutions up and running. Whilst these may differ slightly from the usual January health kick goals that last for two weeks, we have plenty of tips for you to implement this new year to improve your finances.

Take a moment to reflect how your business has been affected by COVID-19, and what changes you’ve made to stay on top of the difficulties that 2020-2021 provided. It’s likely that your personal and work financial goals look different, and that’s okay. You survived the effects of a pandemic, and now more than ever we want to assist you with rebuilding your finances for a positive year ahead.

Investigate the benefits of cloud technology: 

By involving Xero in your business activities, you’ll have access to 800+ Xero approved add-ons to improve your time management, efficiency, and future decisions through greater insight into the current state of your business. Our recommended apps include Dext (formerly Receipt Bank), CloudPayroll and Vend, as well as Spotlight Reporting for integrated reporting and forecasting for multi-entity businesses and franchises – this one in particular may be highly relevant during the new financial year as we attempt to leave the negative impacts of COVID-19 behind.

Continue to utilise COVID-19 government assistance:

If you are looking to start or expand your business operations in NSW, in the next 12 months the Jobs Plus program will reduce costs and financial risks for Australian and international companies if you are able to start projects that create jobs. Click here to see the business requirements to understand whether your business is eligible for this government support.

Take a good look at your Super:

Particularly if you are in a retail fund. It’s important to understand your superannuation fund’s performance, and the fees you are being charged. There may be a much more cost-efficient option for you to switch over to. The Canstar ratings of funds will provide you with clear insight into Australia’s top performing super funds and their five-year returns. However, it is best to seek tailored advice before making changes.

This month my colleague Cynthia Fei wrote a handy guide to super, which you will find here.

Take your small business to the next level:

Spend some time thinking about areas of your business (e.g. leadership, operations, product/service development, marketing etc.) and the functions, roles and expectations of each department. Are these clearly defined and helping achieve the goals of the business owners? Do you have a written strategic plan that you are accountable to achieve?

Obtaining a “big business mentality” may be the best thing you can do to improve your finances. Being a small business ourselves, we consistently make time for some of the following activities that can often fall to the wayside if you’re not careful:

• strategic planning,
• budget setting in comparison with actuals,
• creating forecasts,
• tracking key business metrics, and 
• making adjustments to the business in response to your numbers

These and other areas have become important ways for us to begin each new financial year with a clear and organised outlook.

Analyse your personal finances:

We highly recommend treating your personal finances with the same importance and organised steps. Adjusting your personal budget to take the last year into consideration will provide you with a more relevant and up-to-date representation of your financial situation, and what changes you may need to make.

Our suggestion is to consider diversifying your investments this year in case things don’t pan out the way you expect – we’ve all seen the volatile nature of the stock market the past 18 months, and taking precautions for yourself may be the best thing you do.

Also consider your risk and insurance status – how would your family cope if you or your partner were not able to work for an extended period? Personal finances greatly differ from person to person, so we recommend a complementary first meeting with the team at Allworths Wealth Management as a good first step to sort out your monetary affairs.

It’s an exciting time to get organised for the new financial year, so we hope this short list can be useful in kick-starting any goals and ideas you have for your personal and/or business situation. We’re determined to become stronger than ever with the accounting, auditing, and wealth advisory services we provide here at Allworths, and trust that you’ll move forward in a similar way with your own ambitions. We’re always here to assist with any of the business or even life decisions that our clients make, so please do not hesitate to contact us with any questions or ideas!

IMPORTANT NOTICE

This blog post contains general information only and has been prepared by Allworths without reference to your objectives, financial situation or needs. Allworths cannot guarantee the accuracy, completeness or timeliness of the information contained here. By making this information available to you, we are not providing professional advice or recommendations. Before acting on any of the information contained here, you should seek professional advice.