Steven Covey, the author of the best seller, “Seven habits of Highly Effective People listed the first habit as “Be Proactive”
The month of April and May is a very busy time of the year for most of the accountants and our practice is no different.
Our work during this period involves mainly the Preparation and lodgement of March Quarter BAS, FBT Returns, Preparation of 9 months interims financials to assist our clients with tax and business planning. We also focus on the completion and lodgement of the 2013 financials and individual tax returns before the due date of 15th May 2014.
It is interesting when we engage in discussions with our clients relating to the 2013 financials statements that the human realization straight away is what the use of discussing 2013 financials is now when we are nearly at the close of the 2014 financial year. It further validates Steven Covey’s first habit “Be Proactive”
In today’s economy where changes are consistent, it is crucial to have access to timely financials. It allows you as a client and from an accountant’s point of view to be proactive in dealing with any situations and act accordingly. This will enable the business to move forward and act on opportunities and participate in robust tax planning strategies such as buying assets or borrowing and leveraging.
Most of the successful clients we observe have a system of success (SOS) and preparation of timely financials is part of that SOS.
Nowadays, with the widespread use of the different accounting software such as MYOB, Quick Books and Xero, the power of information availability to convert accounting data into valuable information is vital to the business.
At Zimsen Partners we recommend the following when it comes to having a SOS for timely financials.
- Prepare timely interim financials first. This can be as at 31st of December or as at 31st of March.
- The interim financial statements need to be finalised 30 days after the end of Period i.e. for 31st of December by 31st of January and for 31st of March by 30th of April.
- Have face to face discussions and any strategies for tax planning to be implemented before end of May.
- Finalise your 30th June Financials by 30th September.
A common question then arises in one’s mind ‐ Is this really about assisting my business or is it a fee charging exercise by the accountants? Have a discussion and you will be surprised that the fee differential is not major and the positive difference timely financials will make to your business.
You will also enjoy the feeling of being proactive.
About the Author
Vinay has 20 years of experience and his areas of expertise are in accounting, tax, finance, cash flow management, doing business with Asia, business planning, Business Growth and acquisition. Vinay is passionate and committed in ensuring his clients aspirations are fulfilled. He does this by taking time to fully understand client’s total requirements and recommend appropriate solutions.
This article was produced by Zimsen Partners. It is intended to provide general information only in summary format on accounting, business advisory and taxation issues. It does not constitute accounting advice, and should not be relied on as such.