Reflecting and Planning for a New Fiscal Year 

Every intentional business is meticulous with financial reports as this is one of the major ways to measure productivity. A fiscal year is a one-year that is used by companies for their financial report and it is germane because it is the organizing basis for budgeting and planning. 

In the words of Alicia Tuovila in an article titled “Fiscal Year”, published on Investopedia “A fiscal year is important to publicly-traded corporations and their investors since it includes revenue and earnings making year-to-year comparisons possible.” 

How do you Reflect on your Fiscal Year?

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If you have started a new financial year (for those using the calendar year), what about the old one? Did you just pass it beneath the carpet without reflecting on it? It is very important to have an end-of-fiscal-year checklist to ensure there was a balance between the plan and the execution. For instance, you should find out if any legislative changes affected the business or employees if there were goals that weren’t met, and so on. This will give insight into the start of a new one.

How to plan for a Fiscal Year

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Irrespective of size, every business should plan for a fiscal year. It is expressed with a year-end date and is usually the end of any quarter – March 31, June 30, September 30, or December 31.

Below are 5 things to have in mind in executing your plans.

1. Have Specific Goals

Basically, when planning your fiscal year you should have specific goals. Your goals should be measurable, realistic, and attainable. When you have laid down goals, you should structure a plan to achieve them. 

2. Attach a Budget to each Goal

Your budget must relate to your goals. This budget should be in the spectrum of growth. Your marketing plan needs to be budgeted, as well as all other strategies.

3. Identify the Skills you Need

Having reflected on your previous fiscal year, you have an insight into the skills you need for better performance in the current year. These skills include those from your staff and expertise at specific times throughout the year. You should employ the best people in every business role, whether by hiring or outsourcing.

4. Review Business Systems and Processes

Look at your system, data security, and backups, are they up-to-date? Do your terms of trade still reflect your business performances? Are you utilizing modern technology for your business operations? These are all the things you should consider in your plan.

5. Record your Financials Efficiently

This is paramount in your plan. When there are changes, increment, reduction, and so on, they should be identified and recorded.

Planning enables you to have more time working on your business rather than working in your business as a business owner. When you have clear goals, it will be easy to identify when you have achieved them and this will help to keep you motivated to tackle the next challenge.

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