End of financial year preparation: A guide for business owners

As the end of the financial year (EOFY) approaches, business owners should take the time to review their financial records, reconcile accounts, and prepare for the year ahead. Staying organised ensures you have a clear understanding of your business’s financial position and allows you to make informed decisions for growth.

Here’s a structured guide to help you get your business finances in order before the financial year closes.

Review and reconcile your financial records:

Accurate financial records are essential for understanding your business’s performance. As the EOFY nears, take the time to:

• Ensure all income and expenses are recorded correctly
• Reconcile bank statements with business transactions
• Address any discrepancies to maintain accurate financial data

Keeping well organised records helps with reporting, forecasting, and setting financial goals for the next year.

Follow up on outstanding invoices:

Unpaid invoices can impact cash flow and business stability. Before the year ends, make sure to:

• Review any outstanding customer payments
• Send reminders for overdue invoices
• Update your records to reflect payments received

A proactive approach to accounts receivable helps maintain a healthy cash flow and ensures a smoother transition into the new financial year.

Organise and review business expenses:

Tracking expenses efficiently allows business owners to manage costs effectively. Ensure that:

• All receipts and invoices are stored and categorised
• Recurring expenses, such as subscriptions and operational costs, are reviewed
• Any unnecessary spending is identified for potential cost-saving opportunities

Regularly reviewing expenses provides insight into spending patterns and helps you adjust to improve profitability.

 Assess cash flow and financial planning:

A strong cash flow strategy is key to sustaining and growing a business. As the financial year closes, take time to:

• Analyse income and expenditure trends
• Identify opportunities to optimize cash flow
• Develop a financial plan for the next 12 months

Understanding how money moves through your business allows for better decision making and financial stability in the long term.

Back up financial data and reports:

Maintaining secure and accessible financial records is a best practice for any business.

Ensure that:

• Digital copies of receipts, invoices, and financial reports are backed up
• Data is securely stored in cloud-based accounting software or external storage
• Records are easily accessible for future reference

A well-maintained financial record system simplifies reporting and ensures that historical data is readily available when needed.

Seek professional support for financial organisation:

Preparing for the end of the financial year can be time consuming, and ensuring financial accuracy is crucial. A bookkeeper can assist with:

• Keeping your financial records well organised
• Providing insights into cash flow and spending patterns
• Helping you establish better financial processes for the future

If you’re looking for a professional bookkeeping service to help manage your financial records, Cactus Bookkeeping is accepting new clients from April 2025.

Get in touch to ensure your business is financially organised for the year ahead.

Enter the new financial year with confidence and a strong financial foundation.

5 Tips to Help Manage Cash Flow in Your Business

Managing cash flow is essential to keeping a business healthy. Whether you’re just starting out or running an established company, here are five key tips to maintain a steady cash flow and prepare for any financial challenges that come your way. 

1. Use Cash Flow Software for Real-Time Monitoring

Leveraging accounting software like Sage, Xero, or QuickBooks makes tracking cash flow easier and more accurate. These tools allow you to access real-time data on income and expenses, generate cash flow statements, and set alerts for low balances or overdue invoices. Many of these platforms also integrate with banking and invoicing apps, offering a seamless way to stay on top of cash flow. With automated insights, you’ll have a clear picture of your financial health at all times. 

2. Set Clear Payment Terms

Establish clear payment terms with your clients from the start. Consider setting shorter terms or discounts for early payments to encourage faster cash inflows. This can help reduce waiting periods and bring cash in sooner. 

3. Manage Expenses Wisely

Prioritise necessary expenses and trim unnecessary spending. Regularly review expenses to identify areas where you can cut costs, which can improve your cash flow immediately. Even small reductions can add up over time, enhancing your financial stability. 

4. Use Forecasting for Better Planning

Cash flow forecasting helps you anticipate upcoming cash needs. By estimating future inflows and outflows, you can prepare for slow periods or plan for major expenses. A forecast gives you the information you need to make proactive decisions. 

5. Build a Cash Reserve

Whenever possible, set aside cash reserves to help you cover unexpected expenses or downturns. Having a buffer allows you to maintain operations smoothly, even if cash inflows slow down temporarily.

 Effective cash flow management ensures your business can meet financial obligations while investing in growth. If you need my help, don’t hesitate to reach out!

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