January is a natural reset point for business owners. While the Australian financial year runs from 1 July to 30 June, January sits right at the mid-point of the financial year, making it the perfect time to review performance and adjust course before year-end.
For small businesses, the actions taken now can significantly improve cash flow, tax outcomes, and overall profitability by 30 June.
1. Review Your Year-to-Date Financial Performance
By January, you already have six months of financial data from the current financial year. This makes it an ideal time to assess how the business is tracking.
Key areas to review include revenue, profit margins, cash flow trends, outstanding debtors, and your estimated tax position so far. A mid-year review allows you to correct issues early and capitalise on opportunities while there’s still time.
2. Revisit Your Financial Goals Before 30 June
January is the time to reassess whether revenue targets are realistic, costs are under control, and profitability is tracking as planned. Aligning or resetting goals now gives you six months to make meaningful progress before year-end.
3. Tax Planning Should Happen Now, Not in June
Effective tax planning does not happen at the end of the financial year. January allows time to estimate your tax position, adjust income and expenses, plan superannuation strategies, and time asset purchases properly. Early planning avoids rushed decisions and missed opportunities.
4. Focus on Cash Flow for the Second Half of the Financial Year
The second half of the financial year often brings cash flow pressure due to BAS, PAYG, superannuation, and rising costs. Reviewing invoicing, debtor management, and cash flow forecasts now can prevent unpleasant surprises later.
5. Review Your Business Structure Before Year-End
January is a smart time to assess whether your current business structure is still tax-effective and appropriate for growth and risk protection. Many structural decisions require planning well before 30 June to be effective.
6. Work With an Accountant Who Is Proactive, Not Reactive
A mid-financial-year review is where proactive accounting advice adds real value. Strategic support includes tax forecasting, cash flow planning, structure advice, and preparation for the next financial year.
Make the Most of the Second Half of the Financial Year
January is often the most powerful time to take control of your business finances. At SWOT Accountants, we help small businesses plan ahead, reduce tax legally, improve cash flow, and prepare confidently for year-end.
If you want to strengthen your financial position before 30 June, now is the time to act.
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