Are you ready for the new financial year?

The end of one financial year and the start of the next is always a busy period for small business owners, but it's a perfect opportunity to reflect and plan for the year ahead. Taking time to review your business plan, banking and accounting arrangements are business imperatives that Small Businesses owners often say they wish they did but never get around to. Now is the time.

Here are five tips to ensure you start the new financial year on the front foot.

1. Ensure your records are in order

Good record keeping is essential all year round, but it really pays dividends at tax time. There are many accounting software packages to keep you on the right financial track, including the online accounting service Xero. Xero gives you much greater visibility of your cash flow and it's quick and easy to reconcile your bank transactions.

2. Measure your progress

It is important to take some time to track your progress in the last 12 months. Have you achieved your financial goals? Have you met your goals in areas such as customer numbers or web traffic? If not, why? Businesses determined to drive continuous improvements must consistently review and assess their operations. Once you have reviewed the previous year's progress, set new goals for the coming year. Setting budgets is a crucial part of planning for the next financial year. Budgets ensure that all parts of the business are working together, and that you have clear, measurable goals to work towards. However, budgets shouldn't just be looked at just once a year. A clear plan will enable you to consistently review your budget and assess your progress. That way, you will be able to spot potential problems and opportunities.

3. Start thinking about tax well before June 30

There are a number of things a small business owner can do before the end of the tax year on June 30 to maximise their tax return, including pre-paying some expenses and deferring some income. Get more advice from your accountant or adviser to find out what strategies you can put in place. Your accountant can also advise you of the strict deadlines that must be met at tax time. Superannuation payments for the June quarter must be made by June 30 and Pay As You Go payment summaries (they used to be known as group certificates) must be issued to employees by July 14. If you didn’t do all of these things this time, make sure you diarise them for the end of June 2012!

4. Reassess your business plan

Budgeting typically looks at the year ahead, but a business plan might look two, three or even five years ahead. A business plan provides a top-down view of your business - what your value proposition is, who your target market is, what strengths, weaknesses, threats and opportunities could emerge in the next few years. If you haven’t already go a business plan that is clear and easy to follow, find the right business plan template for you by Googling.

5. Make sure your banking and cashflow will facilitate your plans

If your business plan calls for growth, you need to ensure you have the financial tools and strategies to support this. A full review of your banking by a banking business specialist will help ensure your banking is in good shape and you have access to the products you need, such as; everyday accounts, loans, insurance and business and equipment finance. Every bank will have a website link to find help with this.

Your summary checklist to be ready for the new financial year:

• Consider if your accounting software is making it easy to keep records up to date.
• Measure your business' performance over the last 12 months.
• Set performance goals for the new financial year.
• Prepare a budget for the new financial year.
• Speak to your accountant or adviser for tips on maximising your tax return BEFORE next June 30th.
• Make a list of key dates you need to meet to be tax compliant.
• Update or write your business plan.
• Get a health check on your banking.