The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Vanessa Williams
Published on

Self-Audits: Staying on Top of Important Trends in Your Business

Busy leaders need to focus on the needs of customers, prospects, employees, regulators, suppliers and so on.

However, we encourage these leaders to also take an active interest in the FINANCIAL health of their business.

Conducting a periodic self-audit or financial health check helps identify areas for improvement and ensures the business remains on track towards the financial goals. 

Here are some important topics to cover in a self-audit:

Cash Flow Analysis

Analyse your cash flow to understand the movement of money in and out of your business. Review the cash flow statement to identify patterns or trends, such as seasonal fluctuations or irregularities. Ensure that your cash reserves are sufficient to cover operating expenses and emergencies.

Debt Management

Evaluate your current debt obligations and ensure they are managed effectively. Consider refinancing high-interest loans, consolidating debt, or negotiating with creditors for better terms. Prioritise debt repayment to minimise interest costs and improve your financial position.

Profitability Metrics

Assess business profitability through metrics like gross profit margin, net profit margin, and return on investment (ROI). Compare your performance to industry benchmarks to gauge competitiveness and identify areas for improvement. Find opportunities to increase revenue, reduce expenses and enhance overall profitability.

Financial Reporting and Analysis

Review your financial reports, including income statements, balance sheets and cash flow statements to track performance and identify trends. Update your accounting software to ensure accurate and timely financial reporting.

Risk Management 

Identify risks to your business's financial health, such as economic downturns, market volatility or regulatory changes. Develop contingency plans and risk mitigation strategies to minimize the impact of unforeseen events on your business operations.

Schedule time to conduct the self-audit and address areas of concern. Involve your Accountant to gain access to expertise in these areas. This also helps keep leaders accountable and confident that they’re on track to accomplishing their goals.

Need help analysing your financials? Get in touch with Alliott NZ's Chartered Accountants in Auckland on 09 520 9200.

Topics: Audit business business advice business owners cash flow debt financial analysis key performance indicators management profits reporting risk small business