A financial year can begin on any day of the year. It is a period of twelve months that is used by the Government, any business house or another form of organization. The main aim is to determine and analyze the year’s profits, budget efficiency, and the losses suffered. A financial year often coincides with the calendar year to make calculations easier. Otherwise, keeping track of such financial books can be very challenging. Read ahead now to know how you can prepare for a fresh financial year and every year after that. It is suggested to use Xero bookkeeper Adelaide to ease it out for your business.
Top ways to prepare for a new financial year
Given below are the top ways in which you can prepare your business for a new financial year:
#1 Think about the existing financial system
The first question to ask is: Are you happy with the way your finances are being managed at the given point? In case there is anything that can be improved or needs to be changed, the start of the new financial year is the perfect time for it. There are a number of accounting tools that can be of great aid in this respect. One of them is the Xero bookkeeper Adelaide. It helps to automate a number of financial activities, and this ensures a proper system.
#2 Go over the major expenses
It is very important to go over expenses that have been incurred by the company. This opens up a whole new range of ways in which the expenses can be cut down. This year’s profit is not the result of just good sales but also managed expenses. One of the best ways in which expenses can be reduced is to review supply contracts such as agreements with the electricity and telephone company. Other than this, there is also the chance to buy in bulk, pool in money with other business houses and get discounts on early payment of invoices. Xero bookkeeper Adelaide can be of exceptional use.
#3 Restructure cash flow strategy
Managing the cash flow structure is a major challenge for every company. But now, it has become easy due to Xero bookkeeper Adelaide. It is imperative to come up with new expense management plans and tactics that prevent the cash flow from falling short. A step in this direction is to minimize late payments. You can send invoices on the spot as well as shorten the time period given for payment. In fact, electronic payment systems can also be great in this respect.
#4 Think of new strategies
Every company should set it as a personal duty to review and update strategies regularly. This should ideally be done every quarter. In case of failure, the start of a new financial year is definitely a good time. You need to evaluate every expense management strategy that you have applied in the past year and how it has affected the overall working of the business. If something has worked well, then you must think of ways to improve that. With the help of Xero bookkeeper Adelaide, there is scope for on-point scheme application which is tried and tested.
#5 Update goals
In addition to thinking of new strategies, it is important to update forecasts and goals. It must cover every aspect, including sales, expenses and projected cash flows. Previous data should be studied closely for a better understanding of the company’s accounts. However, it can be too much to do manually. In fact, efficient manpower for accounting is not available all the time at a cheap cost. This is why the best solution is to engage with Xero bookkeeper Adelaide. New financial goals can be set only after forecasts are created successfully. Fresh goals must include profits, margins, as well as cash flows and everything related to your company.
Steps to prepare a financial report
A financial record is a formal record of the business’ transactions. It helps to know about the health of the company and can be prepared in four easy steps.
- Balance financial holdings: The first step is to use the company’s financial report template and assemble information. The role of a balance sheet is to enable anyone to understand the assets, liabilities and profits at a glance. While the assets are placed on the left or top of the page, liabilities and shareholders’ ownership go on the right or the bottom.
- Create a statement of the income: The income statement includes everything such as the gross revenue, gross discounts as well as returned products and operating expenses. Any pending loan payment, as well as income tax, is also deducted at this step. The amount that is then left on the calculator is the profit or loss. However, it can be very difficult to calculate. This is why only Xero bookkeeper Adelaide service can do it most accurately.
- Calculate equity: It is important to determine Earnings Per Share (EPS). The method is to divide the total income by the number of shares owned by investors. The figures are usually big. This is why it is preferred to use Xero bookkeeper Adelaide since it is automated and there is no scope for any calculation mistake.
- Calculate profits and losses: Lastly, every figure is analyzed, and a profit or loss is determined.
What is Xero bookkeeper?
Xero bookkeeper Adelaide is an online accounting platform that allows every company to ensure that work is done faster, efficiently and more accurately. Every company has real-time access to the program and information can be accessed at any time. The aim is to make accounting easy and save a lot of time simultaneously.
AQ Bookkeeping is an expert Xero bookkeeper Adelaide service that can help your business to manage accounts better. In case you want to do it on your own, AQ Bookkeeping can train you at a package of just $150 per month! The company works with a professional team that has fifteen years of experience in the field. Helping leading companies, it is very affordable and high-quality assistance that can be contacted very easily over call and email. You can now use the latest cloud-based solutions conveniently!