How To End Your 2022 Fiscal Year Successfully

2022 fiscal year

For most South African businesses, the end of February signals the end of the 2022 fiscal year. January is the perfect time to reflect on your past year and ensure you’re on track for a successful end and allow for new growth in your business come the new year. We’ve listed 4 ways to help you end your 2022 fiscal year successfully.

Ensure Your Books & Accounts Are Up To Date

Keeping track of your sales and spending should be a year-round activity, however, we often see businesses, especially smaller businesses, lose track of this data towards the end of the year due to the frenzy of the festive season. Taking the time in January to go over your books, receipts and sales is essential to ensuring you close off the year with a full understanding of what the year looked like in terms of your sales, growth and where you’re able to adjust your targets and KPIs for your business plan.

Reassess Your Stock & Systems

If your small business sells physical products, you’re likely going to go into the new financial year needing to do a stock-count of some sort. Ideally, you want to arrange your stock beforehand in a manner that’s organized and easily accessible, and get rid of any damaged or old stock. If your company doesn’t sell physical stock, but is service-based instead, the end of the 2022 fiscal year is the best time to reassess your systems and the ways in which you offer your services, to ensure that a positive customer experience is offered at all times.

Have You Made Notable Progress? 

Reflecting on the past year and what goals you’ve met, or didn’t meet, can help you assess where to make improvements over the next financial year. Are you meeting your business sales’ goals? What areas can you make adjustments to in order to meet, or even surpass, your targets? What are realistic practices you can put in place to hit higher targets? There are a magnitude of questions you can ask yourself in order to fully understand the progress you’ve made with your business going into the new year. If you’re learning from your patterns and the data you have readily available, you’re already in a better position at the end of the 2022 fiscal year and are more likely to find greater success in 2023.

Budgets Are Your Best Friend

With January bringing in new opportunities and avenues for business expansion, mapping out your financial obligations and targets before the new financial year is vital to ensuring you’re able to grow into those spaces comfortably. Below are key considerations when planning your upcoming budget for your business:

– Research and analyze your business operating costs: Having a solid understanding of your expenses provides you with the foundational knowledge required to create an efficient spending strategy.

– Negotiate with your suppliers: Negotiating may allow for stronger and more trustworthy relationships with your suppliers, and can also assist you in the months where business cash flow may be slower. 

– Calculate your revenue: Analyzing previously reported revenue is a good approach to keep things realistic going forward. Many businesses have failed in the past by overestimating revenue, and taking on more debt to cover business operating costs. 

– Understand your gross profit margin: You can gain a lot of insight into your business’s financial health by taking the time to deeply understand your gross profit margin

– Consider seasonal and sectoral trends: Naturally, there will be months when business is thriving as well as months when sales are sluggish. It’s unrealistic to expect your business to maintain the same level of revenue throughout every month of the year.

– Establish your spending margins: Your business’s success is largely dependent on how you manage your finances. Setting spending margins will ensure that your money is being spent wisely and prevent any unnecessary costs.

Have You Planned For The Tough Times? 

As stated above, there will without a doubt be months where your business isn’t progressing as quickly as it does in your busier months. It’s in these cases where acquiring additional business funding, especially through non-traditional funders such as GroWise Capital, could assist you in growing your business progressively throughout the year.

Also read: How To Prepare For A Unstable Economy

There are multiple ways to end your 2022 fiscal year successfully. From keeping your admin up to date, to reassessing your stock and targets, taking the time to go over the different avenues of your business and ensure all is running smoothly before closing your books, will allow for more growth in your next financial year.

Does your business need that extra bit of funding to help it grow? Explore our website, get in touch with us and apply here.

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