5 things to be mindful of during the financial year

Most businesses had their financial year-end on 28 February. When I was speaking to a few business owners, the first thing that came to mind for them was tax and finances.

This got me thinking, year-end is the perfect time for small businesses to do their business planning for the following year. Business planning involves getting your books in order to be able to do proper analysis and make decisions that are relevant and appropriate for company survival and growth. 

Below is a checklist of things to be mindful of during this time: 

  1. Get your books in order

Ask your accountant to prepare all your financial reports. The main ones are your profit and loss statement, cash flow statement and balance sheet.  If you don’t have an accountant, you can use an accounting software system to assist you in generating your financial reports. 

  1. Determine your financial and cash flow position 

To do this you will need to analyse your financial statements, revenue and accounts period, your inventory,  your liabilities and capital, then check your expenses. To determine your cash flow position you will need to review your operating, investing and financing activities. 

  1. Evaluate your current tax and tax strategies 

Being in good standing with the taxman is important for conducting business. Understand what you owe, or perhaps what is due to you, when it is due by and ensure you stay on top of it. If you need to implement a strategy of setting up payment arrangements for what you have outstanding, communicate with SARS and follow-through. You do not want to find yourself in a position where you are behind or in tax  trouble. 

  1. Review previous years’ goals and progress and set new ones

Take time to assess what worked and what didn’t work in the previous year. Use this analysis to further plan and set new goals for the year ahead. 

  1. Document your goals and strategy for the year, hold yourself accountable!

At the end of the year you will need to measure your performance or progress. Documenting your goals and strategies will assist you in remembering what you committed to working towards and how you planned to achieve your goals. 

Article by: Keitumetse Lekaba