Plan the new financial year to combat pressures

6 May 2013

Plan the new financial year with your accountant to combat pressures

As the retail sector works its way out of a sluggish recovery, increased competition and low consumer demand continue to remain a challenge.

According to the latest MYOB Business Monitor results, last year 38% of businesses in the retail sector saw a decline in revenue, while only 29% saw an increase.

However, within the sector expectations for the year ahead are optimistic — 35% of retailers expect to see a rise in revenue, while only 13% are expecting a decline.

MYOB New Zealand executive director, Scott Gardiner, says in order to make the most of the 2013-14 financial year, retailers should spend time planning with an accountant or financial advisor.

“Too often, once the reporting season is over, accountants are no longer called upon until the following March. Many business owners don’t realise the benefits from planning the upcoming year with their financial advisor,” he says.

“The retail industry has continued to bear the brunt of a struggling economy and as other sectors are beginning to see improvements, retailers are still facing many challenges. Working with an accountant will enable retailers to tackle these challenges head on. Accountants can not only provide advice and support, but also offer expert knowledge of the industry.”

The latest Business Monitor reveals the most significant challenges the industry is now facing include price margins and profitability, and cash flow. Competitive activity is the retail sector’s most severe pressure.

“Having a good financial management system in place alongside a sound business plan can ease these pressures. And your accountant can work with you to determine the right management system for your specific needs,” says Mr Gardiner.

“It’s important to have a business model that reflects the changing environment. Working with an accountant will help you to update or create a more effective business plan tailored not only to your needs, but also designed to combat current pressures.”

“Planning the new financial year with your accountant will also assist you in staying up to date with current taxation and other business-related policies and changes. This is a vital component in maintaining a successful business.”

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