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.
- 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.
- 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.