Introduction
Here are some key steps to review as you start the new financial year to get your business on the best possible footing. This will also ensure your business’s financial health and long-term success.
Key Steps
1. Financial Review & Planning
✅ Review the Previous Year’s Financial Performance
• Analyse profit & loss statements, balance sheets, and cash flow statements.
• Identify strengths, weaknesses, and areas for improvement.
✅ Set Financial Goals & Budgets
• Define revenue targets, cost-cutting measures, and investment plans.
• Prepare budgets, by department and total company, and track variances.
✅ Update Business Plan
• Align business objectives with financial projections.
• Adjust strategies based on market trends and business performance.
2. Tax & Compliance Preparation
✅ Ensure Tax Filings & Payments Are Up to Date
• Submit Income Tax, GST, FBT and PAYE returns and make required payments when due.
• Take advantage of tax reliefs, deductions, or incentives.
✅ Review and Renew Business Licenses & Permits
• Ensure all legal documents are updated and compliant with regulations.
✅ Understand Any Tax Law Changes
• Stay updated with changes that could impact the business.
3. Cash Flow & Banking Management
✅ Assess Cash Flow
• Ensure the business has sufficient liquidity for operations by completing, maintaining and monitoring a cashflow forecast.
• Improve credit control and closely manage outstanding receivables.
✅ Review Banking & Loan Facilities
• Negotiate better banking terms if needed.
• Refinance loans or secure credit lines if necessary.
✅ Optimise Payment Processes
• Automate invoicing and accounts receivable/payable.
• Negotiate better payment terms with suppliers and customers.
4. Employee & Payroll Considerations
✅ Review Payroll & Employee Benefits
• Ensure salaries, benefits, and bonuses align with company performance.
• Check compliance with employment tax and KiwiSaver or other Superannuation contributions.
✅ Employee Performance & Training Plans
• Set new performance targets and training programs for employees.
• Consider restructuring teams, engaging experienced contractors (using our Senior Commercial Finance Contractors’ service will add value and deliver results), and employing additional resources to meet business goals.
5. Operational Efficiency & Risk Management
✅ Evaluate Operational Costs
• Identify areas to reduce waste or optimise spending.
• Renegotiate supplier contracts for better pricing.
✅ Implement a right sized Compliance Program
• Compliance is all about the rules (i.e., laws and regulations) you must follow, the promises you make to customers, staff, suppliers and stakeholders, the risks (i.e., things that could go wrong) you want to avoid, and the controls you put in place to make sure it all happens.
✅ Check Business Insurance Coverage
• Review policies for liability, property, cyber, and employee insurance.
✅ Update Cybersecurity Measures
• Strengthen data protection, especially for financial and customer data.
• Implement or update a cybersecurity policy.
6. Technology & Digital Strategy
✅ Review Accounting & Business Systems
• Upgrade or integrate new financial software if needed.
• Automate processes for efficiency.
✅ Optimise Digital Presence & Marketing Strategy
• Refresh digital marketing efforts (SEO, social media, paid ads).
• Set new KPIs for online engagement, lead generation, and sales conversions.
7. Stakeholder Communication & Strategy
✅ Inform Key Stakeholders
• Update investors, board members, and key partners on financial plans.
• Align expectations and goals for the year ahead.
✅ Engage Customers & Suppliers
• Strengthen relationships to ensure continued business growth.
• Offer incentives or loyalty programs to maintain customer engagement.
It is critical in taking some or all these key steps that you build an action oriented Business Plan (our free Plan2Execute Immediate Actions Guide and Workbook will help you) which:
1. Assigns responsibilities for each key area.
2. Sets deadlines for financial, operational, and strategic milestones.
3. Schedules quarterly reviews to measure progress, stay on track or modify the plan.
Management Response is a great option to help you
Management Response Limited’s proven business advisory approach and our senior, commercial finance expertise will help you take these key steps.
Give Management Response Limited a call for a free, no obligation discussion.
Call now to get started!
