7 Things To Review For Enhanced Business Performance

7 Things To Review For Enhanced Business Performance

If you are a business owner in Australia, there’s a big chance that you are now back at the desk after a break. The Christmas holiday period is a great time to rest and reflect over the previous year and think about what you want to achieve in 2019.

There’s no better time to review the performance of your business given you should have a team that’s rested and ready to help you achieve your goals and growth targets for 2019.

Here’s our guide for the critical business activities to prioritise reviewing to ensure if you’re on track for a good year.

1. Review your reporting systems
Take some time to understand how you currently measure effectiveness. Particularly sales and employee performance. Do you know what your cost of sale is, whether you are achieving sales at the right costs and what the most effective sales channels are?

2. Review your cash flow requirements
Cash flow constraints can considerably hinder business growth. Effective balance sheet management of accounts receivables, accounts payables and inventory levels help make sure that you have sufficient cash to operate effectively. It’s also critical that adequate cash is being set aside to meet Tax and Super obligations

3. Review your products and services
If you have good reporting, you’ll understand how profitable each of your products and services is. Understanding this means you can plan for the year ahead, focussing on promoting profitable (and eliminating unprofitable) products or services.

4. Review your staff performance
Do you have good systems for understanding what your team members are working on and also for recognising achievements? A strong culture and communication amongst staff will ensure your team is motivated and focussed on the overall company objectives.

5. Review your operating costs
Getting a handle on all your operating costs and then reviewing for improved deals and more competitive suppliers can have a significant impact on profitability. You can even task staff with finding ways to streamline costs and reward them for finding savings.

6. Review your most profitable customer relationships and satisfaction
Understanding which customers are generating the most revenue and or profit should be a top priority. After all, we all know it’s cheaper to retain a customer than to acquire a new one. Customer retention has a considerable impact on growth. Using tools such as Net Promoter to track customer satisfaction and the likelihood of referral can streamline satisfaction monitoring.

7. Review any debt or finance arrangements.
Make sure you have the most cost-effective finance facilities in place, and you are reducing any debt effectively.

Last but not least, make sure that you involve your trusted advisors in helping you review your business. An experienced advisor can help you take an “outside-in” look at your business and also bring valuable experience and therefore suggestions for improved business performance.

PrimeAccounting specialise in working with private business owners, keeping them on track with finance and accounting services. Contact us for an obligation free Business OnTrack consultation on improving your business performance.

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20 Financial Questions You Should Answer This New Year

20 Financial Questions You Should Answer This New Year

As we kick off another New Year, many of us are thinking about how this year might look different from the last and how we might ensure we are healthier and happier overall.

It’s also a time where we often reflect on what matters to us and whether we can prioritise those things in life.  Being able to do so is inevitably linked to our financial situation and how well our finances and financial management is structured to enable us to live life according to what we value purposely.

What we do know in our work dealing with hundreds of clients supporting them to achieve what they want out of life is what questions need to be answered to get you on track.

The Important Income Questions

–    Is your income and employment secure and does it meet your living costs?  Is it well-structured and tax efficient?

–    Are your education costs covered?

–    Is any surplus income invested efficiently for wealth creation?

 

The Important Investment Questions

–    Do you have clear goals for where you want to be wealth-wise in the next five years?

–    Do you have a tax-efficient investment structure?

–    Do you know if your current investments are achieving your goals?

 

The Important Debt Questions

–    Are your overall debt levels appropriate for where you are at in life?

–    Do you have the right mix of personal and investment debt?

–    Do you have a plan to eliminate personal debt in the shortest possible time?

 

The Important Risk Questions

–    Does insurance cover you for any possible circumstances?

–    Are you getting the best possible rate for insurances?

–    Are you covered appropriately?

–    Would your family be able to live comfortably if you were no longer able to provide for them?

 

The Important Retirement Questions

–    Are you clear on what you want your retirement to look like?

–    Do you know how much you need to live on to have the retirement you want?

–    Do you know if you are on track to have the income you need when you retire?

–    Do you know if your tax is structured effectively for retirement?

 

The Important Estate Questions

–    Is your Will up to date and does it reflect your current wishes

–    Have you arranged for someone to make financial decisions on your behalf if you’re unable to do so?

–    Is any relevant documentation regarding your estate easy to find and is your family aware of any medical and lifestyle wishes?

 

Take the first step in getting an accurate understanding of your financial position and how well it supports what you want in life with our complimentary online financial health check

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