If the idea of June 30th get’s you stressed then you’re probably in recovery right now.
There’s a mad rush, everyone is doing their tax planning, people might be doing their budgeting and forecasting, and as a result of those two things they may even be looking at their cash flow over the last two to three months.
The really interesting thing is that these activities should be happening all year round, not just at the end of the financial year. So we should be understanding our profitability all year round so that we can tax plan, all year round and we should be updating our budgets from month to month. Business is very fluid so as your overheads change your revenue dynamics change so you should be updating your budgets month by month as well as your cash flow.
The analogy I use is that when you drive your car, you have a windscreen and a rear view mirror that are proportioned that way for a reason, that’s so you can spend more time looking through your windscreen to drive your car. From a financial perspective you should be doing exactly the same. You should be looking forward more than you are backwards when you're’ managing and strategizing your business financially.
This is another edition of Future Proof, remember to always look forward to numbers!