As June 30 now fades into the sunset, all the EOFY marketing slogans are boxed up and put away for another year, and 1 July becomes just another day in the calendar.
It is the future business planning that will determine what tomorrow looks like.
If you just want to save tax, then your focus will be on spending what you can by 30 June each year.
If, however, you are motivated by growth, then perhaps your focus will be on 1 July and all the possibilities that exist for the year ahead.
You know the old saying, “There are only 2 certainties in life - death and taxes.” As an accounting profession we have both bases covered.
Tax planning and preparation is an important function of every business, estate planning is an important part of everyone’s life, and both must be done well by a trusted adviser. However, this always has a focus on the compliance of your business, and not perhaps the potential.
Our virtual accounting service line uses advancements in technology (i.e. the launch of cloud accounting) to make it efficient for businesses to connect with their accountants on real-time data.
We can certainly see that the recent pandemic has highlighted the importance of real-time data in decision making, but this is only one piece of the puzzle.
The true value of real-time data is only realised when you have all the pieces of the puzzle in place.
Consistency is the key, which is where systems and procedures are a must.
Your business has an intricate finance function that works best when there are controls, consistency, and regular processes in place.
Automation is the key, which is where the right software must be in place.
For example, bills can be automatically entered into your cloud accounting software by using the right apps designed to read the invoices and extract the necessary data, saving you time on a rudimentary task.
Design is the key, which is where the right chart of accounts must be in place.
If you can simplify your profit and loss report into a clear output, then you will have a better understanding of the cost structure of your business and how you are tracking.
Targets are the key, which is where the right drivers of your business need to be understood and tracked.
This will set you up with clear sales targets on a daily, weekly, monthly basis, with the agility to adapt to changes that outside your control (e.g. COVID.)
Focused communication is the key, which is where you are having the right conversations with your advisers. If you have a target in place, and a process that reliably tracks your progress to this, then the conversation will be focused on the right issues.
How can RSM help?
When it comes to the future, do you know what your business planning looks like? Is your business the sort of business that will reach its potential, or are you more concerned with how much tax you need to pay? Perhaps today can become your new 1 July. For more information, please get in touch with your local RSM office today.