EOFY: Why you need a profitability plan for your business now

Why you need a profitability plan for your business | MWM Advisory

MWM Advisory’s guide to budget preparation to get your business into shape for EOFY

I’m sure you’ve heard about the importance of having a budget, but in a recent survey, MWM Advisory found that only 34 per cent of business owners had one.

That’s a terrible statistic and one that MWM Advisory wants to do its best to change.

But first, what is a budget? Simply put, a budget is a financial plan for your business that you really can’t do without.

As Benjamin Franklin once said:

“By failing to prepare, you are preparing to fail.”

So, having a budget helps you put a financial plan in place for your business, and it is really worth that extra effort because it …

  • – Helps you understand your key numbers – By preparing a budget, you’ll gain a clear understanding of your costs, break even, margins and sales;
  • – Helps you to plan for the year ahead – A budget gives you a chance to review your costs and plan your sales, team, assets and cash you’ll need for the year;
  • – Helps you keep on track and improve results – You can review your results against your budget and if you’re getting off course you can do something about it.

However, setting up your budget can be tricky. To help you, we’ve developed the MWM Advisory Budget Preparation Service where we work with you to…

  1. 1. Set a sales budget – We’ll set a sales forecast for the year based on your previous years’ results and by identifying your expectations for the coming year;
  2. 2. Set a budget for your variable costs – We’ll review your previous years’ variable costs (costs that vary directly with sales) for potential savings and then set a target for the next year;
  3. 3. Set a budget for your fixed costs – We’ll review your previous years’ fixed costs (ie rent) and then set a budget for your fixed costs for the next year;
  4. 4. Prepare a monthly profit and loss budget – We’ll break your sales and costs down monthly, making seasonal adjustments as required, so that you have a clear monthly target;
  5. 5. Calculate and discuss with you the key figures for your business – We’ll explain what the key figures are for your business including your costs, break-even, margins and sales;
  6. 6. Enter your budget into your accounting software – We’ll enter the figures so that you can report your actual results against your budget as the year progresses.

To find out more, or to book your Budget Preparation Service appointment, call 07 5596 9070.

Celebrate the End of Financial Year with your team and ours

Celebrate the End of Financial Year with your team and ours

The End of Financial Year (EOFY) is upon us. For business owners, like you and I, there are many moving parts to be aware of. There are yearly financial statements to create, taxes to pay, deductions to claim, and documentation to submit to the ATO.

30 June is coming – what’s your game plan?

30 June is coming – what’s your game plan?

End of Financial Year Tax Planning. While Covid-19 and the uncertain business landscape it created made planning difficult, what we can say with certainty at MWM is that in our experience those who had a plan have navigated the past two years more successfully than those who didn’t.