How to Create a ‘RIPPA’ 2019 Financial Year in 5 Steps

By failing to prepare,

you are planning to fail.

Benjamin Franklin
The 2018 financial year is coming to a close, WooHoo!! We have survived another year in business!!

But how did you go in 2018 financial year? Do you know?……

  • Is your accounting system reconciled up to date?
  • Is your balance sheet correct?
  • Have you accounted for new equipment purchases, are your finance contracts entered?
  • Have you been to your accountant to talk about strategies to reduce your tax?
  • How much money have you made?
  • How much tax do you have to pay?

Yep a lot of questions and 98% of business probably won’t know the answers!! To me that’s scary! Yes scary that you as a small business owner doesn’t actually know how much profit you made during the 2018 financial year. As a business owner you need to   learn this sh*t!

As an accountant working in public accounting firms for over 15 year I’m going to tell you a little secret….. YOUR accountant will not always be looking after you! So I don’t want to hear “oh my accountant/bookkeeper looks after all that ‘stuff'”, Noooo. Yes your accountant/bookkeeper can look after your numbers and make sure your compliance is up to date but;

It is YOUR responsibility to know your own business numbers!

Ok phew, now that I have got that off my chest and I’m assuming you do now know your numbers or have decided to learn about this, the next questions are:

  • Did you achieve what you had expected or what you had set out to achieve in your business in 2018?
  • What do you want to achieve in the 2019 financial year?
  • How are you going to achieve this?

Not sure where to start? Check out my 5 steps to achieve a RIPPA 2019 Financial year here:

Copy of RIPPA Infographic (2)
  1. REVIEW – Know where you are now! Update or implement an accounting system that provides you with live meaningful reports. Make sure the data in those reports are correct. Did achieve your goals in 2018 financial year? It’s now time to think about about your roadmap for the 2019 financial year. Better cashflow, increased profit, reduced work hours, a holiday with the family?
  2. IDENTIFY – What burning issues do you need to deal with? Are there any roadblocks stopping you from achieving your goals? Deal with these and get help where necessary.
  3. PLAN – Now that you have some clarity on what you want to achieve in the 2019 create a plan. And I don’t mean a plan in your head! Write it down on paper/Word doc just put it in words. List 3-4 goals for the year and determine how you are going to track your progress. (It only needs to be one page not a book!)
  4. PUT your plan into action! When writing down your plan include an action section. What actions do you need to do to make your plan work. Who needs to carry out these actions and what are the deadlines?
    “A Plan without Action is just a Dream.”
  5. ACCOUNTABILITY – Who’s going to keep you on track. As a business owner myself I know how easy it is to ‘just get busy’! Busy working in the business and not on it. It’s important to set time aside monthly or quarterly to stop and do a recap on your plan to see how your tracking and if you need to make some adjustments. Having someone independent to chat to will also give you an outside view and often provide you with that clarity that is often hard to get when your head is in the business every day.

Wishing you a RIPPA 2019 financial year!

Do you need help with any of these 5 steps?

Take advantage of our Complimentary Client Review, this is an opportunity for you to set and review your goals and give you clarity around the actions you need to take to achieve those goals.  It also stimulates strategic discussion and identifies burning issues, opportunities and challenges so that you respond effectively.

 

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