3 Tips on How to Prepare for the Next Business Cycle
After the immense changes brought about by COVID-19, the Australian business landscape has significantly transformed due to shifting consumer behaviours and external restrictions.
As a business owner, you may have gone through the most challenging battle in your life and are on the final stretch to the way things used to be before. Between implementing new guidelines, cutting costs, and optimising your cash flow to adapt, your hands may have been fuller in recent weeks since you first started. Now that tax filing season is done, there’s one more task that you’ll need to start worrying about sooner or later: Preparing for the next business cycle.
Why preparing for another cycle is important
Whether you’re a start-up, a midsize firm in the midst of expansion, or a large corporation, one unavoidable truth about business management is that you never really have any days off. This is especially true when it comes to business cycles.
For distinguished times where the challenges have gone beyond what most expected at the start of the year alone, it may seem like a much-needed break is long overdue. However, this same time presents both a necessity and opportunity for businesses to start planning ahead with their finances and laying out the groundwork for the incoming business cycle ahead.
Instead of sacrificing valuable time to catch a much-needed breather, this time of year is one where you need to prepare because you can further your business’s success without a high cost. If you’re looking to keep your efforts consistent, take advantage of opportunities with the recovering Australian economy, and come out of the pandemic much stronger, here are three preparation tips to consider:
1. Observe your current bookkeeping process
After everything that’s happened in this year so far, now is the best time to go over how your bookkeeping process has fared amid all the challenges your business faced. While it may not seem like much at first, a thorough review of your process can help with more effective long-term planning and success because of how well it exploits pitfalls and gives you room to fix them before they become costly).
Throughout the process of reviewing your current bookkeeping system, here are a few questions you should ask yourself:
“What are my current collection protocols, and are they best suited to my needs?”
“How am I currently invoicing my clients?”
“Is the manner in which I store my receipts still effective, or do I need to review it again?”
2. Go over your budget once more Aside from testing your business as a whole, the pandemic is also one that most likely tested the effectiveness of your previous set budget in the most intensive and thorough way possible. Using the findings from the past few months alone, you can gauge whether or not your budget was conducive for profit and your business’s survival, and then you can make your preparatory adjustments accordingly! 3. Monitor the emerging market trends Aside from reassessing your budget and bookkeeping, another vital factor to go over is the market trends that are rising or are about to climb in the future. Once you’ve determined the current rising trends, you can cross-reference your findings with your current market positioning and practices to adapt well enough to ensure a smooth run for the coming year.
With a new business cycle on the horizon, it’s essential to take the necessary steps to prepare your company for proper adaptation and continued success in the long run. By following the three tips mentioned above, you’ll be able to embark on a hassle-free and successful preparation process without running into the risk of potential fumbles! We’re a team of accountants in the Gold Coast that are dedicated to helping businesses in the region with our accounting and bookkeeping services. Give us a call today to see how we can help your business grow while meeting all your financial needs!