Every January, individuals and businesses have an opportunity to take advantage of what is called the “Fresh Start Effect” – referring to research evidence that shows people are more likely to make positive changes at times that mark the start of a new time period and represent a new beginning, most notably the start of a new year. 

With the right tools, businesses can maximise this Fresh Start Effect to begin the new year on a strong footing. Three business tools, in particular, are indispensable to achieve this: a business review; goals and a plan for the year – including a budget; and ways to measure progress in achieving goals and executing the plan in the months ahead. Fortunately, these tools are not expensive or difficult to use, and your accountant will be able to assist you to set your business up for great results in 2023.

1. A business review 

   A comprehensive review of business operations is a simple but powerful business tool.

   It enables business owners and managers to analyse performance in achieving goals and meeting key performance indicators (KPIs), and to identify problems and spot trends timeously. Most importantly, an effective review will reveal what is working and what is not, so the team can celebrate successes and build on what is working, and also change what is not working to get better results.

   Some of the business areas that need to be reviewed may include:

   • Business plan, sales, marketing and branding strategies.
     
     
   • Total income to total expenses, cash flow statement and debtors’ reports, actual vs budget spend, and the balance sheet.
     
     
   • Internal resources including the company’s people and processes.
     
     
   • Client base, client processes and customer satisfaction.
     
     
   • Statutory and regulatory compliance.
     
     
   • Fees, contracts and costs.

   The best way to do a business review is to involve your entire team and to call in professional assistance for a clearer understanding, particularly of the financial aspects of the review.

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