The End is coming!!!
OK – so it is just the end of the financial year. Nothing too dramatic but it can still be messy if you are not prepared.
Now many people roll their eyes and then glaze over when people start talking about finances and year end. So let me reach out and give you a virtual slap on the side of the head.
THIS STUFF IS IMPORTANT!
Too many people delegate their finances and then end up in deep water because they did not pay them enough attention.
You don’t have to do it but you have to understand it. If you don’t understand then keep asking questions until you do.
This is particularly important for small to medium enterprises.
So here are a few things you need to do (and what I spent Sunday doing).
- Get your accounts up to date
- Look at how you will distribute your profits
- Consider what depreciation you will be doing
- Consider if there are any significant purchases you may need to make prior to year end
- Consider if you are paying yourself a wage or a dividend
- Ensure you have enough cash on hand to pay your June BAS (you do set some money aside from each sale don’t you?)
- Talk with your accountant NOW about what you may need to do to prepare for year end
- Read your Profit and Loss and Balance Sheet statements and make sure you understand them
If you are an employee, you won’t need to do all of these but it is still important to consider if you want personal tax deductions as to what they may be.
You may also choose to take the time to consider your financial position and net worth to look at if it has growth since last year and what you need to do about that in the coming year.
The business maxim of “What gets measured gets improved” has never been more relevant than to your own financial situation.
So are you Ready For The End?
NOTE: This is not considered advice. Every persons situation is different. Please be sure to contact your own financial and business advisers to assess your situation before taking action that may affect your financial situation. We assume no responsibility for any action or lack of action on your behalf based on this legendary and rather nice article. Come on. Let’s get serious. You have to take responsibility for yourself and your own situation. I still can’t believe you have read all the way to here. Ok, go and do something fun now.