NF
New Financial
Year - New
Financial You
Happy New Year – a financial year that is.
Yes, it’s a play on a theme but it is a very relevant time of year.
Why? Because any business owner or contractor should be
aware of where they are financially at any given time.
This is a fact often overlooked by many.
A
Financial Year is not
only about paying taxation,
although many people think
this. Here are a couple of
different examples when you need to
besavvy about your financial position
at any one time.
+
If you are applying for any borrowings
and you’re self-employed for example,
the banks will also work on financial year
income not calendar year. They will want
to know your incomings and outgoings,
write backs, spending habits as well as
paying habits.
+
If you are applying for income protection
or salary continuance insurance the
underwriters may want confirmation of
your earned income by way of copies of
50
Women’s Network Magazine
tax returns or financials. If you’re lucky
your Book Keeper or Accountant can
give confirmation immediately if you
have kept them updated, otherwise they
will have to prepare interim statements
and to do this you will need to provide
them with details of transactions and
cashflow movement.
+
If your Accountant wants you to
contribute to superannuation or apply
for tax variations, due to contributions
to super, this too will also be calculated
for the financial year, not a calendar
year. You will need a record of what
has already been paid and what type
of contribution/s it was. You would
normally then have to call your financial
adviser or the actual superannuation
fund to confirm this since statements are
only issued one a year and that is usually
after the tax year has ended already.
Do you manage your Cashflow at work
and at home so you know where the
$’s earned are going? Do you have
everything easily categorized so you
know you are on a budget in those
areas? Do you even have a budget
forvarious categories?
Business wise or even simply personally
wise wouldn’t it be great to have all this
information easily at your fingertips at
any given time AND IMPORTANTLY ALL
IN THE ONE PLACE! In this day and age
of ever-improving technology, there are
various programs and apps that allow
this. Say goodbye to spreadsheets and
hello to the various “portals” available.