The new year opens up the door for multifarious new opportunities. Planning ahead of time is non-negotiable for any progressive business firm. Especially when the business is just sprouting, it becomes vital to plan for the new fiscal year in advance. With a decline in the economy worldwide, planning for the new financial year can look like a daunting task.
Here are a few pointers to take into consideration for planning well:
Review Last Year’s Income and Expenses
Carefully look at the income and expenses of your business in the previous financial year. Retrospect on key heads for insights on where and how to improve. Meticulous evaluation can point out the major loopholes and financial mistakes (if any) you made in the previous year. Take the time out to check if your investments were well worth, or can be done away with, in the coming year.
Awesome teams makes great companies, hence manpower planning is yet another crucial aspect. When you hire a human resource for the smooth execution of various business processes, you need to pay the remuneration. So, when you are hiring personnel you need to consider the nature of your business. Hire manpower as per the requirement of your business and pay them salaries according to their skills. In short, if a skill is rare in the market and is crucial for your firm, you need to pay more salaries.
PLAN. Further, hire full time and part-time employees only if you can occupy them 100% for your business. Keeping high caliber individuals idle can be expensive for the firm and demotivating for the employees. Hiring part-time employees help in cost-cutting especially when you do not require their presence all the time. When you hire freelancers, you get the best skill and pay for the skill only when you need this.
In the coming year you could consider outsourcing business activities to third-party vendors, to reduce costs and get work done quickly. Plan ahead if you want to maintain limited employees on your company’s payroll. When there are limited employees on your payroll, you are free from paying the extra benefits that you pay to the employees on your direct payroll. Make a checklist of unwanted expenses and minimize them.
Before cutting costs, hire an auditor and generate a profit and loss account and a balance sheet of your firm. The professional help of an auditor can help you give an idea regarding where your income and expenses are coming from. You can shut down your less profitable sources and maximize areas of a better return.
Plan Savings and Tax Payment
Planning taxes at the start of the year can save you a lot of hassle later on. When you plan now, you can save taxes and make wise investments for great results.
Other Financial Compliance
Apart from checking Form 16 which reflects the tax deducted by the employer, submit all the deductions/ proofs timely to ensure compliance with the law. File returns with proper documentation timely. Check the applicability of other forms and taxes such as 15G and 15H. Knowing your tax liabilities in advance calculates savings easier and also helps plan investments accordingly. Hire experts to help you here, if you do not have resources in-house.
A proper investment plan is crucial for your business’ success in the coming year. Make a solid business plan and present it before the investors to allure them for investing in your start-up. Prioritize your business goals as short term and long-term goals accordingly. Plan for long term goals while keeping an eye on achieving short term goals.
Take Help from Professionals
When a business starts, it affects the lives of many in the community. You may need the help of an insurance agent to purchase an office area or an investment broker to choose the right stocks such as shares, debentures and mutual funds. Plan the areas where you need to engage others, this could avoid time wastage later on.
Read more here: Hiring Startup Advisors
Evaluate The Risks
Know the risks in the market and make a contingency plan. Also consider certain disasters that you might not anticipate and ear-mark funds to tide you if the incident comes up. Keep an eye on your competitor’s strategy and always have a PLAN B.
A new year offers a set of new opportunities and brings about risks that were little known earlier. Meticulous planning, keeping an eye on the market fluctuations and not losing sight of your customers’ pulse is the key to survive and flourish. Plan well, and stay ahead of the curve.
While you focus on your business, it is best to allow experts to help you with other critical matters related to compliance. Be it managing books for your business or an advisory service like a CFO, The Filings.in is an expert in all compliance related to startups.
Get in touch with us for support or to know how we can specifically help your business.