As Allied Health business owners we don’t always feel comfy – talking about the money side of things. Yet, we do know that business is a numbers game and that good money management determines the success or otherwise of our businesses. June is a brilliant time to dive into the numbers (admittedly monthly is preferable) but June really forces us to face the facts. Whilst I am not a bookkeeper or accountant I would like to share some general suggestions for EOFY. It is essential that you check in with your advisory team and make specific decisions for your circumstances.
Get all your billing up to date. Sometimes you can get a couple of weeks behind with sending out your invoices. Now is the time to get everything locked and loaded in your practice management system and sent out for payment. Everything. It is important that your income is accurate. June is not the time to avoid ‘the portal’. Get into it.
Double check your accounting software. Whether you use XERO or MYOB jump on in and check everything carefully. The eagle eye list includes:
- that all client payments have been receipted out of your practice management software
- that all business related payments have been allocated to an expense category in your general ledger
- that your income and expenses look correct
- click through to ensure items have been allocated correctly.
Your bookkeeper will help you, great to make a time with them to work through it all together. Print out all your Profit and Loss statements, checking them over on paper is nearly always easier. Go old school with the coloured pens.
Cash is king
How is your cash flow looking? Pull up reports on outstanding invoices and get on the phone to follow them up for payment. I dare say you have provided the service, it is completely OK to seek payment for your efforts. Chat with your accountant about any debt that truly does need to be written off, get the report on these from your system and forward to the accountant.
Pay in advance
Are there any memberships, subscriptions or the like that you can prepay?
Your fees for service
I am a big fan of putting up services fees at the start of every financial year. This makes sense to me as you have a level playing field for the full financial year ahead. Helpful for your business budget. Ah, what is that business budget you speak of, don’t worry keep reading. When do you put your fees up and why?
Meet with your accountant. No need to be nervous, they should be our closest mates in the adventure that is the private practice. Heads up they are super busy in meetings during June so hustle and book your meeting, maybe two meetings. They probably already have access to your XERO / MYOB file, if not consider this, it makes business life so much easier. Otherwise send in all your profit and loss statement ahead of your meeting. Your accountant is the best person to understand and help you work through the best tax management strategies.
Check your business structure
EOFY is a great time to revisit your business structure, sole trader, company, trust structures… your lawyer and accountant (ideally in the same meeting) are best placed to explain all and review what will serve you best going forward. Ask, ask, ask until you understand it all, it is super important.
Payment summaries for the team. Typically this is a few clicks in your accounting software. Whether done by your good self or your bookkeeper they need to be done and delivered to your lovely team by June 14.
Business and Financial Planning
Money and EOFY activities sure are the focus for now, but how does all this financial activity roll through your broader business plan. Book a couple of hours with your self to check in on progress towards your business goals, your business focus and how your daily, weekly, monthly activities are serving the grand plan.
Develop a budget
Many of you may have this underway already. Your bookkeeper and accountant will be able to provide you with all the help you need to develop a budget. I suspect that this is one of their favorite activities! Things to think about include billable days and hours available per month, fees and when they may change, the stability of expenses… just keep asking, they will help you through.
EOFY Policy and Procedures
Whilst doing this you may like to write up your EOFY policy and procedures. A checklist will make it easier next time around. Sounds like the cherry on the top doesn’t it, facing financial reality and having to write up another business recipe. Give it a go, it will be good to know that you may be able to make it easier on your self and your team next year.
How is that for an EOFY roundup? Now to launch your self into it all, get your financial ducks lined up and most importantly a meeting with your accountant.
What will your financial activities include?
If you have any question for me before you meet with your financial team, book in for a free 30 min power call with me.