New financial year 6-Step action plan
New Financial Year Business Tips: 6-Step action plan.
The start of a new financial year is a powerful moment to take control, course-correct, and chase real improvement. Whether you're aiming for stronger profits, better cash flow, or less stress, this 6-step guide is built for small business owners who want more out of FY25.
1. Reflect: look back before you leap forward.
Take a deep dive into FY24. Ask:
- Where did your business make money?
- Where did it leak cash, time, or energy?
- Which clients, services, or products were your most (and least) profitable?
Review your profit and loss, cash flow, and balance sheet, not just to check a box, but to extract lessons. Patterns matter. Use them to guide better decisions this year.
Pro tip: Don't just look at revenue. Look at margins, average payment times, and recurring vs. one-off income.
2. Reset: clean the slate and get organised.
Before you build anything new, clean up the old:
- Reconcile outstanding invoices and expenses
- Close off last year’s accounts
- Archive your files (digitally and securely)
- Update your accounting software settings for FY25
This clears mental clutter and ensures your numbers are accurate from day one. It also makes any reporting, tax planning, or loan applications this year faster and more accurate.
Bonus tip: Now is the time to switch systems or bookkeepers if needed. Don’t drag last year’s mess into this one.
3. Plan: set financial goals that drive action.
Success doesn’t happen by accident. Set specific, measurable targets for the year ahead:
- How much revenue do you want to generate?
- What profit margin do you want to hit?
- How will you track expenses, payments, and debt?
Build these goals into a monthly budget and cash flow forecast. And don’t just aim for growth, plan for profitability and resilience.
Think of your financial plan as your GPS: it keeps you focused, helps you adapt, and shows you when you're off course.
4. Systemise: stop repeating tasks that don’t make money.
Every hour you spend on manual admin is time you’re not spending growing your business.
Now’s the time to:
- Automate invoicing and payment reminders
- Set up recurring payroll and super contributions
- Use tools like Xero, MYOB, or Dext to auto-categorise expenses
- Create templates for proposals, quotes, and onboarding
Smart systems = fewer errors, faster work, and more time to earn and grow.
Aim: By the end of Q1, your core financial processes should run with as little human effort as possible.
5. Monitor: track your money like a CEO.
Too many businesses only look at their numbers quarterly or worse, at tax time. That’s reactive. Be proactive:
- Review your numbers monthly, not yearly
- Track key metrics: revenue, profit, cash flow, debtors, and expenses
- Compare against your targets and adjust fast
This rhythm gives you the power to pivot early, spend wisely, and spot cash flow issues before they become fires.
Set a recurring monthly “money meeting” even if it’s just you and your laptop. Your future self will thank you.
6. Partner: build a smarter financial support team.
If you're serious about results, you need more than just software you need strategy.
Work with:
- An accountant who offers proactive advice (not just tax returns)
- A bookkeeper who keeps your records spotless
- A financial advisor or coach who can challenge your thinking
The right partners save you time, stress, and thousands in missed opportunities. You don’t need to know everything but you need to know who to call.
Good advice isn’t a cost. It’s a return-generating asset.
This year, be deliberate.
FY25 won’t be easier but it will be smarter, if you make it that way.
With the right steps, systems, and support, you can work fewer hours, make more money, and enjoy running your business again. Start by owning your numbers and the rest follows.
At LEDGERSMITH, we’re not just number crunchers. We work with you and genuinely care about helping your business succeed. If you’re looking to improve from last year, gain control over your finances, and set your business up for real, measurable success we’re here to guide you.
Obligation free chat or email enquiries@ledgersmith.com.au
