The beginning of the year is a great opportunity for small business owners to review their operations, update important records, and ensure their systems are working efficiently. Taking the time to organise key areas now can help prevent disruptions, improve compliance, and create a strong foundation for the months ahead.
Update Business and Employee Records
Accurate record-keeping is essential for smooth operations and compliance with legal requirements. Start by reviewing and updating employee details, including addresses, phone numbers, and emergency contacts. This is especially important if staff have moved or changed their contact information.
Payroll details should also be checked to ensure that tax file numbers, bank details, and superannuation fund nominations are correct for all employees, particularly any new hires or departing staff. Errors in payroll information can lead to delays in processing wages or complications with tax reporting.
Employment agreements should be reviewed to confirm they reflect the latest terms and conditions. This is a good time to check if any updates are needed in response to changes in employment laws, business policies, or job roles.
System access should also be reviewed. Former employees should no longer have access to business software, online platforms, or sensitive information. New staff should be given the appropriate access to the tools and systems they need. Keeping these records up to date helps to prevent payroll mistakes, administrative delays, and security risks.
Review Business Software and Systems
Small businesses rely on various software programs to manage their finances, employees, and day-to-day operations. Regularly reviewing these systems ensures they are up to date, secure, and meet business needs.
Start by conducting a software audit to check all subscriptions and user access. Deactivate accounts for former employees and ensure current staff have the correct level of permissions. If your business has grown or changed, it may also be worth considering whether your current software still meets your needs or if better options are available.
Updating software programs to the latest versions helps protect against security vulnerabilities and ensures access to the newest features. This includes accounting and payroll software, customer management systems, and other digital tools essential to running your business efficiently.
Assessing workflows is also important. If any processes are taking longer than they should or feel overly complicated, now is the time to look for improvements. Many software solutions offer integrations or automation features that can help save time and streamline operations.
Strengthen Cybersecurity Measures
Cybersecurity is a growing concern for small businesses, especially when staffing changes occur. Failing to update access permissions or security settings can leave your business vulnerable to data breaches and fraud.
One of the simplest and most effective security measures is to update passwords for shared systems, especially when employees leave the business. It is also recommended to enable multi-factor authentication (MFA) where possible, adding an extra layer of protection against unauthorised access.
Staff should be reminded of best practices for cybersecurity, including recognising phishing emails and using strong passwords. Businesses may also consider enrolling staff in basic cybersecurity training, which can prevent costly security breaches. See Cyber Wardens
Plan for Compliance and Financial Success
A clear plan for the year ahead can help businesses stay on top of their financial and compliance obligations. Creating a compliance calendar with key dates, such as BAS lodgements, payroll tax deadlines, and superannuation contributions, can help prevent last-minute scrambling and missed deadlines.
Reviewing financial goals set at the beginning of the financial year is also beneficial. This allows business owners to assess progress, identify any challenges, and make necessary adjustments. If needed, a financial check-in with a bookkeeper or accountant can provide additional insights and ensure the business remains on track.
Communicate with Your Bookkeeper/BAS Agent
A strong partnership with your bookkeeper can help ensure your business remains financially organised and compliant throughout the year. Regular communication allows them to provide the best support and helps you stay on top of key financial obligations.
Start by scheduling a check-in to review your financial position and discuss any updates that may affect your business. If there have been changes in staffing, payroll, or business operations, your bookkeeper must be informed to ensure accurate record-keeping and compliance with reporting requirements.
Ensure they can access the latest financial documents, including bank statements, invoices, and receipts. Keeping these records up to date makes it easier for them to reconcile accounts, prepare BAS lodgements, and manage payroll efficiently.
Your bookkeeper can also assist in reviewing your financial goals and budgeting for the months ahead. If your business has expanded, changed direction, or faced unexpected challenges, they can provide insights and recommend adjustments to keep your finances on track.
If you are unsure about upcoming compliance deadlines, ask your bookkeeper to help create a financial calendar. This can include key dates for tax reporting, superannuation contributions, and other obligations, ensuring you avoid late fees and penalties.
By maintaining clear and open communication, you can work more effectively with your bookkeeper and set your business up for a productive and financially stable year.
Communicate with Your Team and Clients
Good communication is essential for a well-organised business. Scheduling a check-in with employees can help address concerns, clarify expectations, and ensure everyone is aligned with business goals. If your business works closely with clients, it may also be useful to update them on any changes, new processes, or improvements that will affect them in the coming months.
Taking the time to review records, update systems, and set clear plans now can save time and stress later. By staying organised and proactive, small business owners can set themselves up for a smooth and successful year ahead.
For more information about our Bass Agent/Bookkeeping services please contact Symmetrii for a free consultation on (02) 4339 7870.
Source: Symmetrii Newsletter February 205 from the Institute of Certified Bookkeepers (ICB).
