Financial planning for a new year – Our top tips
When it comes to your finances, preparation is essential. You’d rather be one step ahead than chasing your tail. The new year is a great time to rethink and refresh your financial planning. We’ve come up with a few tips to get you started in the right direction.
Reflect and evaluate the past year
Look back at the past year and review what’s worked and what hasn’t. For instance, you could review your pricing strategy on an annual basis, to ensure you continue to attract new prospects and retain customers. You want to be mindful of inflation and also stay competitive within your marketplace.
Most industries are always changing and evolving. Being innovative in all aspects of your business will help you keep up with those changes and stay ahead of the curve. It will also ensure you’re staying ahead of competitors. As part of your overall business planning process, spend some time on competitive intelligence too. Include in your plans how you’ll increase value for your offerings and continue to stand apart from the crowd.
Your priorities might change over the course of a year. Maybe you have a new product launch and you need to factor in financial planning for that. Or perhaps you’ve invested in a new marketing strategy. If your priorities change, your financial planning is likely to change with it. Reviewing the past year will give you a good insight into what needs adapting.
Set realistic goals and targets
As your priorities change, you’ll create new goals, both long-term and short-term. Make sure they’re realistic. There’s nothing wrong with being optimistic or cautious, but you need to find the right balance. With realistic goals, you’ll be more likely to achieve them and avoid the disappointment of missing higher targets. (And if you exceed those goals, it’s an added bonus!)
Realistic goals might include securing more funding or aiming to recruit a certain number of extra people, for example.
In terms of financial planning, you could look across your business at the range of products or services you offer and set a realistic financial target for each. Then break down how you are going to reach that target so that you have a clear plan that will help you to get there. It’s also worth having follow-up goals. If you reach your target early, you know where you’re going next.
Use accounts management software
Using good accounts management software will ensure you’re dotting all the i’s and crossing all the t’s. Automated systems are often more secure, more accurate and more efficient. It also gives you time to focus on all the other aspects of your business, without having to worry about being on top of your finances as well.
If automated systems aren’t your forte, don’t be afraid to ask for support where you need it. Outsourcing your accounts is a really worthwhile investment long term. It saves you time and energy, but also peace of mind knowing your accounts are in safe hands.
At Numero, we’re here to help. We want what’s best for your business, and want to be involved in the growth and development of your business journey. Get in touch with us today and let’s work together to take your business to the next level.
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