As we approach the new financial year, it is common to feel overwhelmed by numerous tasks and lack clarity on what needs to be done. Here, I outline key areas for planning, noting that they may vary depending on specific cases:
- Getting the accounts ready for the new financial year: As a first step, we need to get the accounts software ready for the new financial year by changing the accounting period or splitting the company or creating a new company and importing the required data, as the case may be. This is also the time to add new ledgers or to regroup the existing ledgers according to our specific needs, based on our experience during the year.
- Identifying the various financial goals for the new financial year: Alongside preparing accounts, we must also define financial goals for the upcoming year, which may include projects, asset acquisition, or renovations. Ideally, these goals should be determined in the current year and reflected in the budget for the next year.
- Budget: One of the first requirements for the new financial year is preparing a budget and getting it approved by the competent authority, the Governing Body for civil needs and the Provincial/Bishop for the canonical needs, before the start of the new financial year. It serves as a road-map for proper income utilization, incorporating factors like specific goals, receivables, payables, savings, investments, and asset needs. Salary costs, including raises and increase in the number of employees, must also be considered.
Fr Alex G SJ
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