FINANCIAL YEAR END SPECIAL.
31st March is the financial year-end in India. We push to complete transactions for the year and prepare to file our statutory returns. We repent a few decisions, feel ecstatic about some, and hope to do better next financial year. So what to take care of, We recommend the following.
First, check all the advances given during the year. Advances given for expenses or for a purchase of fixed asset needs to be accounted for immediately. Many suppliers are prompt in collecting advances but linger in providing the actual invoices.
Second, scan all bank accounts and their statements to see if there is idle money lying. Try and Use the Liquid fund deposit strategy to ensure your money works even in Current accounts. Close all accounts which might not be of any use
Third, Do not associate MIS reporting with activity. We feel there is constant monitoring required for business or moving resources from one venture to another, however, to be a successful business owner, the MIS reporting should be on autopilot mode, simple and easy to understand and decide. Choose less action over more decisions.
Fourth, make your employee performance tracking a compulsory ritual. Devote time to find what is working with each resource and where the improvement is needed. See what they are good at, have they acquired new skills, and added new responsibilities. Ensure the performance matrix for each team member is clearly identified and reviewed. Just seeing the summary you should know what value each team member brings. Get familiar with details as well, so you are in charge.
Fifth, Own up your business mistakes and make corrections. As an owner many times we feel a new venture should work spectacularly and take a decision in haste. It may work OR turn out to be a bad one. Ensure that no cost is being spent without having commensurate value. Remember the maxim “Cut the loss”.
Sixth, Review your expenses, many of us routinely pay off the expenses as they occur without thinking much about it. What budget was set at the start of the year and how the actual expenses have been incurred need to be reviewed. What begins as pleasure spending soon turns out to be a habit. Taking look at the numbers and bring deliberations into the decisions. You will realize what’s affordable, planned, and fine and what’s excessive and needs control.
Seventh, Review your sales target and actual with the overall business but also customer wise. Recall the Pareto 80: 20 principle (80% of sales comes from 20% of Customers) have you identified the top 80 % of revenue-generating customers for the current year and last year. Your sales team should not only ensure the addition of new customers but the growth of the business from the existing customer.
Eighth, clean up your drawers and ensure data backup policy is up to date and being put in use Clean up the old mailbox, delete all temporary files that might have been generated on the computer.
Ninth, file those statutory returns which might have been pending, do remember as Non-filing may involve penalty which may include imprisonment as well.
Ensure you enjoy your business and continue to have healthy growth. Before entering into the new Accounting Year get all your dues and taxes cleared so that you can start your financial year with a new beginning.