End of Financial Year is the Best Time to Build Business Resilience

The Titanic was one of the best ships ever developed in the world.

There were no problems with that ship. It had the latest technology and was deemed “unsinkable”.  The problem with the Titanic was that the captain ignored all the warnings, made hasty decisions, and hit an iceberg. A cautionary tale for all of us, especially when it comes to managing our businesses and finances.

Just like the Titanic’s captain, ignoring crucial data and making rash decisions can lead to disaster.

Entrepreneurs are inherently innovative and driven, but they often fall short in process and strategic planning.

As we have come to the end of another financial year, now is the time to plan ahead if you want to thrive this financial year and make next year’s financial reporting a breeze. Next June is simply too late—you can’t just copy and paste last year’s financial data and hope for the best.

 

Moving forward stronger through detailed planning

At The CFO Centre, and we see clients across all industries. We’re witnessing national growth as businesses emerge stronger with our help.

Many business owners can feel overwhelmed at this time of year, but now is the time to move forward with stronger processes and strategic planning, all with the help of a fractional CFO who understands your business and industry.

 

Process and Strategy: The Key to Success at EOFY

Small and medium-sized enterprises (SMEs) are the lifeblood of our economy. While the news may paint a bleak picture, it’s not all doom and gloom. Proactive CFOs can capitalise on their experience and innovation in financial reporting to give you the edge.

Why is this so important?

· Detailed budgeting and reporting are crucial for a clear snapshot of your business

Funders have noted that poor presentation of financial information can hinder a business’s ability to secure loans or favourable terms.

· Banks and other funders alike want detailed, accurate reports—information out of your head and onto paper. That’s where we come in. At The CFO Centre, we excel in creating P&L budgets, cash flow forecasts, and monthly reports, regardless of your business size. Data drives decisions, and accurate reporting is essential for shareholders, boards, and funders.

· Correct risk analysis helps to protect your business

Evaluating all obvious risks in your business ensures you have contingency plans for those with the highest likelihood and impact.

 

Business Planning Checklist

Because the end of financial year is the best time to build business resilience, here is a summary of our business planning checklist which our CFO’s will help you to work through:

1. Know Where You Stand

Ensure your financial reporting provides an accurate, timely view of your business performance, including:

·         Historic balance sheet, profit and loss, and cash flow

·         Key performance indicators (KPIs)

·         Rolling forecast balance sheet, profit and loss, and cash flow

2. Analyse

Evaluate your products or services to identify which to invest in and which to scale back to enhance business performance.

3. Review Costs

Review all costs, identify alternative suppliers, and renegotiate deals to minimize your cost base. Look for savings through system or process streamlining.

4. Review Customers

Identify and focus on your valuable customers. Consider letting go of customers who delay payments or consistently negotiate prices down.

5. Assess Risk

Have contingency plans in place to manage the impact of accepted risks.

6. Get Clear on Your Personal Goals

Reflect on why you started the business, determine if those goals remain the same, and assess your progress towards achieving them.

Tailored Financial Solutions

Our CFOs provide a fresh perspective that can make a world of difference.

As former U.S. President Dwight D. Eisenhower once said, “It’s very easy to be a farmer when the plough is a pencil, and a field is a thousand miles away.” Business owners need to deeply understand their operations. Engaging a professional part-time CFO can help you understand market forces and growth options.

There is some more useful advice in some of our blogs on the topics of Strategic Planning and Planning Checklist

Don’t wait until end of the financial year to start planning and achieving your business dreams. The time to act is now. Contact us and let us help you navigate the financial seas and avoid the growth icebergs ahead.