Home Articles Post-Easter personal and business resolutions you should act on NOW

Post-Easter personal and business resolutions you should act on NOW

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With the start of the next quarter of 2010, now is a good time to make your personal and business resolutions for the remainder of 2010 and beyond. Here are the things to consider.

Personal

  • Review/update wills and powers of attorney. Those who don’t have a will should consider putting one in place, particularly if they have dependants or own major assets.
  • Consider if retirement savings will be adequate even if retirement is many years off.
  • Review mix and performance of investments during the past six to 12 months, including those held in superannuation.
  • Review super salary sacrifice arrangements in light of the halving of the contribution deduction limits from 1 July 2009.
  • Check that insurance cover is adequate. Self-employed people should have income protection insurance and sole income earners in the family should consider having life insurance.
  • Review level of debt and restructure finances to reduce interest charges.
  • Set a budget for next year that also takes into account where you want to be in three to five years time.
  • List personal circumstances and expectations to see what other issues should be considered.

Business

  • Review/update the succession plan for the business and ensure it includes both management and ownership succession.
  • Review cashflow and profit & loss budgets for the next 12 months and make adjustments where necessary. Compare actual to budget.
  • Review reporting systems to ensure accurate and timely financial reports are prepared.
  • Ensure that debtor payment terms are strictly enforced and review debt recovery systems.
  • Review business plan and update to take into account expected changes in trading during 2010.
  • Review insurance coverage to ensure it is adequate. Consider insurance for key persons in the business.
  • Check inventory controls, improve stock turnover and reduce stock obsolescence and spoilage.
  • Review staff remuneration to take advantage of FBT concessions (e.g. cars) and exemptions such as laptop computers.
  • Review staff roles and update job specifications/employment agreements where necessary and talk over opportunities and expectations with employees.
  • Check that the financing arrangements are still appropriate and review alternative forms of finance.

This is not an exhaustive list, but provides a good starting point for future planning.

Alan Sharfman is Principal of iDeal CFO Solutions.

Photo: williamnyk

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