New Financial Year ... What will you do differently?
When the financial year ends, and the new one begins, it’s an important time for reflection and planning. What are you going to do differently?
By Michael Mekhitarian
Do you have clarity and purpose?
Well, the bad news is that the past six months seem to have disappeared in the blink of an eye! The good news is that the Financial Year is coming to an end.
Financial Year End can be a particularly busy and stressful time for SMEs, and it goes without saying that it’s a critical moment in the calendar, not just because it reveals the annual profit you’ve been working so hard for, but because it provides a perfect opportunity for planning for the year ahead.
In the lead up to EOFY, at ATB Partners we get to spend a lot of time talking in-depth with clients. And right now in amongst all of these conversations, one thing that stands out for me: Australian small business owners are resilient, optimistic and adaptable.
It’s been a pretty trying year for many, but despite the continued presence of Covid hotspots and outbreaks and snap lockdowns, the small business sector is emerging with a positive attitude and a sense of buoyancy. Certainly the economy is, overall, faring better than was expected this time last year, too.
Say 'Hello' to post-Covid Normal
It’s strange really, to think that we are now experiencing ‘post-Covid normal’. Twelve months ago, at the height of the pandemic, this was just a buzzword and most of us didn’t really have a clue what it meant.
Now, it would appear that it means a sort of ‘lingering uncertainty’.
We’re all pretty mindful of the fact that that nothing is what it was … and that in fact, sometimes all is not what it seems, either. This is certainly a business environment none of us have ever experienced before.
So how can we remain at the top of our game as we deal with ‘post-Covid normal’?
In my personal (and professional) opinion this comes down to two key things:
- Staying focused on what’s important.
- Being nimble and able to plan around ever-changing circumstances and challenges.
These skills are critical.
Stay on top of you game
Which brings me to how ATB Partners can help.
We have an ingenious piece of software called the ‘Growth Equation’. By plugging in your business numbers and choosing some modelling options, we can drill down into your business and determine several different types of future scenarios. In particular the software can help to define the areas of your business that are the most profitable.
EOFY is the perfect time to find out more about how the Growth Equation can help your business.
The software provides valuable data, which, when coupled with specialist business advice that takes into consideration other information such as current market forces, wider economic outlook, legislative changes, competitor analysis etc … means you can make astute decisions from a solid base, with a lot more certainty.
Ultimately, you can determine what to focus on. And, when you have a clear objective, it’s much easier to remain nimble and to plan.
When ambiguity reigns, as it is at the moment, the endless uncertainty can take a heavy toll – in terms of stress, in terms of panicked and impetuous decisions that may be regrettable or costly.
This is human nature – we move into a mode of thinking that’s based on fear and a need to protect, and lose our ability to creatively problem solve. Therefore, we don’t take risks. And this is not a bad thing, it just negates the fact that times of uncertainty also create opportunity … But you can only seize opportunity when you see it clearly.
We recommend the Growth Equation because it really helps business owners to understand their numbers deeply, but more than that, it helps them to get rid of the clutter and to find clarity, purpose and ultimately, focus. This results in them being able to spend time, energy and resources where they count, and to reap the rewards of doing so.
If you would like help planning for the year ahead, contact us. We have tax specialists, accountants and financial planners within the team who can give you a broad perspective of professional advice.
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