AIBS National News

With the start of a new decade, now is a good time to make your personal and business resolutions for 2010 and beyond.

Personal

• Review/update wills and powers of attorney. Those who don’t have a will should consider putting one in place, particularly if they have dependants or own major assets.
• Consider if retirement savings will be adequate even if retirement is many years off.
• Review mix and performance of investments during the past 6 to 12 months, including those held in superannuation.
• Review super salary sacrifice arrangements in light of the halving of the contribution deduction limits from 1 July 2009.
• Check that insurance cover is adequate. Self-employed people should have income protection insurance and sole income earners in the family should consider having life insurance.
• Review level of debt and restructure finances to reduce interest charges.
• Set a budget for next year which also takes into account where you want to be in three to five years time.
• List personal circumstances and expectations to see what other issues should be considered.

Business

• Review/update the succession plan for the business and ensure it includes both management and ownership succession.
• Review cash flow and profit & loss budgets for the next 12 months and make adjustments where necessary. Compare actual to budget,
• Review reporting systems to ensure accurate and timely financial reports are prepared.
• Ensure that debtor payment terms are strictly enforced and review debt recovery systems.
• Review business plan and update to take into account expected changes in trading during 2010.
• Review insurance coverage to ensure it is adequate. Consider insurance for key persons in the business.
• Check inventory controls, improve stock turnover and reduce stock obsolescence and spoilage.
• Review staff remuneration to take advantage of FBT concessions (e.g. cars) and exemptions such as laptop computers.
• Review staff roles and update job specifications/employment agreements where necessary and talk over opportunities and expectations with employees.
• Check that the financing arrangements are still appropriate and review alternative forms of finance.

This is not an exhaustive list, but provides a good starting point for future planning

Make an appointment with your accountant or financial advisor to discuss these matters.