3 Tips for Freshening Up Your Business’s Approach

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February 27, 2017
Accounting

Some businesses spend all their time spinning their wheels. They’ve been doing the same thing for too long, and haven’t thought about if that thing is serving them anymore. Failing to revise your company’s budget can cut seriously into its profits. Revising your business plan helps your company adapt to changing times. The following are some tips for how to look at your business with fresh eyes and start planning for the future.

1. Consider Your Business Plan

Sit down with your company’s business plan and have a critical look at it. Does it really reflect your business’s goals? Some goals might need adjustment. For instance, you may need to move up a timetable for completing a project, or you may need to abandon a project entirely in the face of new economic or technological forces.

Because you may have a sentimental attachment to your company, it doesn’t always make sense to do this review internally. Hiring someone from outside your firm is a good way of making sure you get an honest look at your business’s goals.

2. Adjust Your Budget

Every year, your accounting team gathers useful information about where your company’s money goes. Your budget is only an estimate or a plan, and no plan survives contact with the enemy. You will almost certainly spend money differently than you do in your budget, and this is expected. You may also see that your business’s cash flow is much larger or smaller than you anticipated.

But you should be certain to revise your budget and cash flow estimates with the new information. By using a program like Xero to track your expenses throughout the year, you’ll be able to realistically plan for the new year.

3. Be Ready for Tax Season

While different companies have different fiscal years, you should ideally complete these adjustments in time for tax season. The time of year when you’re preparing your precious year’s documentation for the government doubles as a perfect time to perform a sensible review of where your company’s been — and where it can go.

Revising your business plan and your budget may seem like frighteningly large tasks. But by coupling these to the retrospective time of tax season, as well as by taking a hard look at where your company’s been and what its future prospects are, you’ll move forward in a way that assures financial success.

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