April and May mark an industrious time in the accounting world!
For our 30 June financial year-end clients, it’s the lead-up to budget season. Equally, for December year-end clients, it’s the start of your reforecasting period.
For both scenarios, now is the time to start preparing.
We’ve set out a checklist to help make this process smooth for your team, and to ensure we work together in the most efficient way to get through this busy period.
1. Start planning early
Begin thinking about key inputs:
- Funding changes
- Staffing movements and planned recruitments
- Program changes or growth
- One-off or capital spend
2. Lock in your budget consults
- Work with your Purpose Client Manager to book in your budget consults early
- If you have upcoming Board or Finance Committee meetings, let us know so we can align timelines and support presentations before year-end
3. Process tips
- Involve all relevant leaders to gain input early
- Keep it focused on key drivers
4. Key considerations this year
- Interest rates, CPI and cost pressures – current international events are driving up inflation
- Wages & FairWork updates. The annual wage review to index Award pay rates is typically announced around 20 June. The review outcome is closely linked to CPI. Based on recent CPI figures, as well as current commentary, early guidance would be for an Award increment in the range 3.75% - 5%. This estimate should be refined in late April, based on the March quarterly CPI announcement and an update on the current global energy shock.
