Planning for the New Financial Year in Our Current Climate

How does one plan to move forward with business this new financial year, in a current world which offers so many roadblocks that are out of our control?

In our best attempts to discover an answer to this oh-so-important question, we looked outward with hope and asked regular external client, Morgan Wilson, Founder of Creditte, for his expertise on the topic.

How do you plan in uncertainty? Many businesses will panic or avoid going through detailed plans altogether thinking, "there's no point in making projections because I have no idea what's going to happen!" 

But in times of uncertainty, we need data-driven projections more than ever. To move forward with business this new financial year, you should:

  1. Make projections: Account for multiple scenarios (best-case, worst-case, whatever-concerns-you-and-your-business case).
  2. Be adaptable: Even though your projections might not come true, they give you guidelines for adjusting and making corrections when the course changes unexpectedly.
  3. Have a strong view of cash flow and cash on hand: If times get tough, nothing is more important than cash. Accountants love the saying “cash is king” because nothing rings truer in business at any time, uncertain or otherwise! You need a crystal-clear view of where the cash stands in your business and how to drive it forward.
  4. Speed and visibility: Above all, if your projections are going to matter, you need to be able to report your actual results as quickly as possible. With your actual data coming in via reports or even a financial dashboard, you can be quick to adjust before things get too far-off track.

Don't neglect planning this financial year. Of course, things won't go as expected. But when they don't, following these steps will put you in a position to make data-informed decisions, proper adjustments, and keep your business strong.

August 24, 2021
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