When should you revise your business plan?
At the end of your first year in operation you should have conducted a major review of your business plan. Most of your initial projections will have been based on estimates and assumptions.
While you will have been reviewing these throughout the year, the beginning of year two is the right time for an in-depth analysis of profit drivers and how your underlying assumptions about the market have stacked up.
Set aside time with your accountant (and business coach or mentor if you have one) to tweak your plan and draw up some more informed monthly financial projections. Review them regularly.
KPMG Perth partner Bruce Sinclair says accountants deliver the best value to business with “light touch” monthly reviews and in-depth assessments at the end of each quarter.
These frequent check-ins allow you to pick up developing problems early.
“An annual meeting with your accountant is going to deliver very little in the way of value for you in relation to growing and developing a strong robust and resilient business,” Sinclair says.