End of Financial Year: A time to review and plan
Posted 06 Jul 16 by Steve Perri
The end of financial year brings with it more than the opportunity to close off another tax year. It presents a time to review operations and performance, reflect on what has worked in your business from a marketing and operational perspective, assess whether you have had a ‘good’ or ‘bad’ year and plan for the coming financial year.
Key to the above considerations is a clear definition of what defines a ‘good’ or ‘bad’ year: This question can only be addressed if an adequate KPI matrix or performance dashboard has been created to ensure this key information can be easily obtained. The performance of these indicators will determine whether a positive or negative result has been generated.
Actions which can assist in undertaking this analysis and planning for the future may include:
- Review of actual performance to budgeted performance and variance analysis;
- Review of key drivers of the business and how they have varied from prior years;
- Considering what measures can be implemented to drive performance improvement;
- Preparation of forecast / budget for the coming financial year;
- Consideration of whether there is a clear business plan and strategy in place or whether one should be prepared or updated;
- Review of key staff performance compared to expectation; and
- Consideration of whether the business is capable of growing and if so, how best to achieve and fund this growth.
No individual is capable of growth or improvement with without some degree of self-reflection and businesses are much the same. Take the time now to reflect on your businesses performance with a view to identifying areas of improvement. It might just be the best time you invest all year.