The beginning of the year is the perfect time for small business owners to review their operations, update records, and ensure their systems run efficiently. Taking proactive steps can help prevent disruptions, improve compliance, and create a strong foundation for success.
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 particularly important if staff have moved or changed their information.
Payroll details should also be checked to ensure that tax file numbers, bank details, and superannuation fund nominations are accurate, especially for new hires or departing employees. Payroll errors can cause delays in wage payments and complications with tax reporting.
Review employment agreements to confirm that they reflect the latest terms and conditions. Consider any necessary updates due to changes in employment laws, business policies, or job roles.
Another critical area to check is system access. Former employees should no longer have access to business software or sensitive information, while new staff should have appropriate permissions. Keeping records up to date reduces payroll errors, administrative delays, and security risks.
Review Business Software and Systems
Many small businesses rely on software for financial management, employee tracking, and daily operations. Conducting a software audit ensures systems are up to date, secure, and aligned with your business needs.
- Check subscriptions and user access – Remove inactive accounts and adjust access levels as needed.
- Evaluate software effectiveness – As your business evolves, your current software may no longer be the best fit. Consider whether there are better alternatives that can enhance efficiency.
- Update software programs – Keeping software updated helps protect against security risks and ensures access to the latest features. This includes accounting, payroll, and customer management systems.
- Improve workflows – Identify time-consuming processes and explore automation or integrations that can streamline operations.
Strengthen Cybersecurity Measures
Cybersecurity is a growing concern for small businesses, mainly when staff changes occur. Failing to update security settings can leave businesses vulnerable to data breaches.
- Update passwords for shared systems, especially after employee departures.
- Enable multi-factor authentication (MFA) to add an extra layer of security.
- Train employees on cybersecurity best practices to prevent phishing attacks and data breaches. Cybersecurity awareness can save your business from costly risks.
Plan for Compliance and Financial Success
A clear plan for the year ahead helps businesses stay on top of financial and compliance obligations.
- Create a compliance calendar – Mark key dates for BAS lodgements, payroll tax deadlines, and superannuation contributions to avoid last-minute stress.
- Review financial goals – Assess progress on your business goals and adjust as needed.
- Meet with a bookkeeper or accountant – A professional check-in can provide financial insights and help keep your business on track.
Communicate with Your Bookkeeper/BAS Agent
A strong partnership with your bookkeeper ensures financial organization and compliance. Regular check-ins help address updates that may affect your business.
- Schedule a financial review to discuss payroll, staffing, and operational changes.
- To ensure accurate reporting, provide access to updated financial documents such as bank statements, invoices, and receipts.
- Work with your bookkeeper to set a financial calendar, keeping track of tax reporting, superannuation contributions, and other obligations to avoid late fees.
Communicate with Your Team and Clients
Clear communication strengthens business operations.
- Check in with employees to address concerns, clarify expectations, and align everyone with business goals.
- Update clients on any changes, new processes, or improvements they should know.
By reviewing records, updating systems, and setting clear plans now, small business owners can save time, reduce stress, and prepare for a productive and successful year.
(Article sourced from the Institute of Certified Bookkeepers)
