End of Financial Year (EOFY) can be a stressful time for many business owners preparing financial records and tax returns, updating records, and pushing to close as many deals as possible. In addition to these activities, EOFY is a good opportunity to assess how you can run your business more efficiently.
Tip 1 - Review your technology and business processes
Many business owners we speak to are often too busy to review their processes or consider using software to help manage their business. But, if you can make incremental changes and use technology to streamline your processes, it’ll greatly reduce stress and help you to build a scalable business.
A great way to save time and improve your way of working is to integrate your project management software with your accounting software. The benefits of using an integration between these softwares include: reduced data entry, improved financial data giving you an instant profitability picture, and having a complete end to end business solution. By combining Xero and WorkflowMax you have everything you need to maximise your business performance.
Tip 2 - Utilise your accountant
Accountants do more than help with just compliance and tax. A great accountant can help you at every stage of your business journey. Whether you're looking to scale, need help managing cash flow, or even in the business planning stage, an accountant is a valuable asset you can rely on. At Xero we are connected to a wide range of excellent advisors, if you’re still looking, you can find one near you here.
An effective accountant enables you to focus on the important parts of your business that you enjoy working on while helping you avoid some of the common pitfalls businesses face. If you're not sure when you should hire an accountant this article will help.
Tip 3 - Review past projects and profitability
While looking at Profit and Loss statements will provide useful information, reviewing the profitability of your projects provides additional insight that can save a lot of pain in the future.
Look for trends in your projects and ask questions along the lines of:
Does the actual time worked on projects exceed estimated hours?
What types of jobs generate the most profit for me?
Which clients are the most profitable?
Am I under-quoting in certain areas?
WorkflowMax provides the ability to view your project profitability in real time using the Job Financial Summary report. This report enables you to see at a line item level where you are making and losing money.
Don’t let this EOFY pass you by. Take the time to review your processes and take steps to improve your business. You will be amazed at how small changes add up over time.
The most dangerous phrase in business is, ‘We’ve always done it this way.’ - Grace Hopper
What changes have you made in your business to prepare for a new financial year - we’d love to hear? Leave a comment below.