As we step into 2025, it’s the perfect time for business owners to set clear financial goals that will drive success in the year ahead.
Whether you’re a startup, a growing business, or an established company, having defined financial objectives ensures you stay on track for profitability, stability, and long-term growth.
Why setting financial goals matter
Financial goal setting is more than just a New Year’s resolution; it’s a strategic approach to business success.
Clear financial targets help:
- Improve cash flow management
- Strengthen budgeting and forecasting
- Support business expansion and investment planning
- Ensure long-term sustainability
- Increase financial discipline and accountability
By aligning your financial objectives with your broader business strategy, you set the foundation for a strong and profitable year.
Getting your mindset right before setting financial goals
Financial planning requires clarity, focus, and a realistic approach, so going into it with the right mindset established will help.
Here are some key questions to consider:
- What’s the long-term aspiration?
- What challenges did we face last year?
- How risk-tolerant is the business?
- What are our non-negotiables?
- Who do we need to involve in planning?
Taking the time to reflect on these will create a solid foundation for setting meaningful and attainable financial goals.
STEPS TO SETTING FINANCIAL GOALS FOR 2025
1. Assess your current financial position
Before setting new goals, review your business’s financial performance over the past year.
Key areas to analyse include:
- Revenue and profit trends
- Cash flow statements
- Outstanding debts and liabilities
- Expense patterns
- Investment returns
Understanding your financial health will highlight areas for improvement and opportunities for growth.
2. Define SMART goals
Effective financial goals should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.
Examples include:
- Increase Revenue by 15%: Set a revenue target and create an action plan to achieve it.
- Reduce Operating Costs by 10%: Identify areas where expenses can be optimised without compromising quality.
- Improve Cash Flow Management: Set a target for reducing late payments and increasing liquidity.
- Expand to a New Market: Set financial benchmarks for entering new locations or customer segments.
3. Use a proven financial framework
Implementing a structured financial planning model can make goal-setting and execution more effective.
Consider using:
- OKR (Objectives and Key Results): Set ambitious but measurable objectives with key results to track progress.
- Balanced Scorecard: Align financial goals with customer, internal process, and learning/growth perspectives.
- 70/20/10 Budgeting Rule: Allocate funds strategically—70% for operations, 20% for growth, and 10% for security.
- Rolling Forecast Model: Continuously update forecasts to adapt to market changes.
Choosing a model that fits your business will help create a sustainable and structured approach to financial growth.
4. Create a budget aligned with your goals
A well-structured budget is essential to achieving financial targets.
Ensure your budget covers:
- Fixed and variable costs
- Capital expenditure for growth
- Emergency reserves
- Debt repayment plans
Regularly reviewing and adjusting your budget will help keep your business on track.
5. Leverage technology for financial tracking
Utilise modern financial tools and software to monitor your progress efficiently.
Popular tools include:
- Cloud Accounting Software: Xero, QuickBooks, or MYOB for real-time financial tracking.
- KPI Dashboards: Power BI or Google Data Studio to visualise business performance.
- Cash Flow Management Apps: Float or Pulse to track liquidity and avoid financial bottlenecks.
These are all tools Hall Brown’s uses, to help ensure that financial goals remain achievable and measurable throughout the year.
6. Invest in financial planning & advisory services
Working with financial experts, such as Hall Browns Accountants, can provide valuable insights and strategies to optimise financial performance.
Professional accountants can help:
- Develop financial forecasts
- Identify tax-saving opportunities
- Improve compliance with financial regulations
- Optimise cash flow and investment strategies
7. Monitor progress and adjust as needed
Setting financial goals is just the first step – now you have to work towards achieving them. Tracking progress is crucial.
Implement financial tracking tools and regularly review key performance indicators (KPIs), such as:
- Revenue growth rate
- Profit margins
- Accounts receivable/payable turnover
- Return on investment (ROI)
Adjust your strategies based on performance data and market changes to stay agile and responsive.
HOW HALL BROWNS CAN HELP
At Hall Browns, we’re experts in helping businesses set and achieve their financial goals.
Our team of expert accountants provides tailored advisory services to optimise financial planning, tax strategies, and long-term growth initiatives.
If you’re ready to start 2025 with a strong financial strategy, reach out to Hall Browns today for expert guidance.