Advantages of keeping good business practice all year round
With the financial year-end looming CPA Australia has issued a reminder of the importance of good business practice for small to medium enterprises (SMEs) if they are to ride out the economic downturn.
Business Policy Adviser Gavan Ord said the looming end of financial year was an opportunity for business operators to position their businesses strongly for the year ahead.
“It is important that businesses complete the important housekeeping and regulatory requirements to rule a line under the year just completed, but equally important is the opportunity to plan for the year ahead,” he said.
“Doing so will place the business proprietor in a much stronger position from which to make critical investment and other strategic decisions.
“The Good Practice Checklist outlines measures - both strategic and process-based - through which a business can be best positioned for the challenges and opportunities in the year ahead.
“The past year has been, in many ways, one of unprecedented economic and financial volatility, which increases the importance of effectively taking stock and planning for the year ahead.
“Crucially, these are measures that should become part of an ingrained and ongoing business approach. While the end of financial year is a good opportunity to review one’s business, better business practice means reviewing critical business areas quarterly, or even monthly.”
Among the items on the checklist are:
- Strategic financial tasks, including analysing the performance of your business by reviewing your financial statements;
- Strategic management tasks, including updating the long term strategy for the business;
- Regulatory requirements including lodging returns and forms; and
- Regular performing of financial tasks (eg data entry, review of stock balances and debtors).
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