As the end of the financial year approaches, many business owners find themselves reviewing their financial position, preparing information for their accountant, and setting goals for the year ahead.
While it’s common to focus on income, expenses and tax planning at this time of year, it’s also a great opportunity to review your existing finance arrangements and ensure they are still supporting your business goals.
Why Review Your Finance Before EOFY?
Businesses change over time.
What worked for your business 12 months ago may not be the best fit today.
You may have:
- Grown your revenue
- Purchased new equipment
- Expanded your team
- Taken on larger projects
- Improved your cash flow
- Changed your business direction
As your business evolves, your finance needs can change as well.
A finance review can help you understand whether your current lending structure is still aligned with your goals and identify opportunities that may support future growth.
Areas Worth Reviewing
Business Loans
If you currently have a business loan, it may be worth reviewing the structure, interest rate and overall suitability of the facility.
A review can help determine whether your current arrangement continues to meet your business needs.
Equipment and Asset Finance
Many businesses rely on equipment, machinery, vehicles or technology to operate efficiently.
EOFY can be a useful time to assess:
- Whether existing equipment is still meeting your needs
- Potential upgrades that could improve productivity
- Replacement of ageing assets
- Future equipment requirements as your business grows
Vehicle Finance
Whether you operate a single work vehicle or manage a fleet, reviewing vehicle finance arrangements can help ensure they continue to suit your business requirements.
Cash Flow Solutions
Cash flow is often one of the biggest challenges faced by small business owners.
A review of your current finance arrangements may help identify solutions that provide greater flexibility and support day-to-day operations.
Don’t Forget to Speak with Your Accountant
The end of the financial year is also a good time to discuss any available tax incentives, deductions or depreciation opportunities with your accountant.
Every business is different, and a qualified accountant can provide advice tailored to your individual circumstances.
Looking Ahead to the New Financial Year
The end of the financial year isn’t just about looking backwards. It’s also an opportunity to plan ahead.
Ask yourself:
- What are my business goals for the next 12 months?
- Will I need additional equipment or vehicles?
- Are there opportunities for growth that may require funding?
- Is my current finance structure helping me achieve those goals?
Sometimes a simple review can uncover opportunities that help position your business for the year ahead.
Need a Second Opinion?
At Your Finance Broker, we work with business owners across a range of industries to review existing lending, explore asset finance options and help structure finance solutions that support future growth.
If you’d like a no-obligation review of your current business or asset finance arrangements, we’d be happy to have a conversation.
Disclaimer: This article contains general information only and does not constitute financial, taxation or credit advice. Please seek advice from your accountant, financial adviser or other qualified professional regarding your individual circumstances.