Common Fiscal Year Planning Mistakes and How to Avoid Them

What if your business could grow faster, save more, and stay ahead of the curve next fiscal year? While it’s still far off, now is the perfect time to assess what’s working, address the gaps, and refine your strategy. Small tweaks today can lead to big wins down the line.

Remember that planning isn’t just about crunching the numbers, it’s about setting clear goals, making the most of your resources, and preparing for the unexpected. Set your business up for success by avoiding these common mistakes. 

Planning mistake: Lack of clear KPIs and benchmarks

The fix: Set SMART goals

Vague goals can lead to confusion and wasted resources. Instead, use SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals.

For example, instead of saying, “Increase revenue next year,” a better goal would be, “Increase revenue by 15% in Q3 through new client acquisitions and expanded service offerings.” Having clear targets helps track progress and make necessary adjustments along the way.

Planning mistake: Poor data management

The fix: Keep records organized with the right tools

Messy or inconsistent data makes decision-making harder and leads to missed opportunities. A clear, centralized system for tracking and analyzing data helps businesses stay on top of things.

For example, a local retail store tracking sales manually may struggle to see which product SKUs sell the most. By switching to a POS system, they can easily spot trends, adjust inventory, and avoid overstocking slow-moving items. When data is accurate and accessible, businesses can make smarter decisions.

Planning mistake: Overlooking employee engagement

The fix: Foster a culture of recognition

Many businesses focus only on finances during planning, forgetting that employees play a huge role in success. A motivated workforce leads to improved performance and business growth. In fact, according to the State of the Global Workplace: 2024 Report by Gallup, only 35% of Filipinos are engaged at work. This further highlights the importance of employee recognition programs in fostering engagement and motivation.

Pluxee’s Rewards and Recognition (R&R) platform promotes behaviors that drive business growth through peer-to-peer recognition, an extensive rewards catalogue, and customizable rewards or badges.

Common mistake: Ignoring debt management

The fix: Strengthen your balance sheet

Debt can fuel business growth when managed wisely, like funding expansions or upgrading capital equipment. On the flip side, poor debt management such as missing vendor payment schedules or relying on loans for daily expenses can quickly lead to financial trouble.

BlackBerry, for example, cut its debt by 45% in FY24 by strengthening their balance sheet and refocusing on cybersecurity. This goes to show that managing debt isn’t just about reducing what you owe, it’s about making deliberate moves that can impact your company in the long run.

Planning mistake: Absence of a contingency plan

The fix: Always have a Plan B, plus a plan for the worst-case scenario

Unexpected challenges like market shifts or supply chain issues can happen anytime. Without a backup plan, businesses risk financial trouble.

Take the recent onion price surge in the Philippines. Restaurants that relied only on local suppliers struggled with costs, while those with backup suppliers or alternative ingredients managed to thrive.

To stay prepared, businesses should set up emergency funds and have flexible contingency plans. A well-thought-out Plan B and a contingency plan for the worst case can keep your business stable, no matter what comes your way. 

Invest in meaningful rewards for long-term success with Pluxee Gifts

Smart fiscal planning isn’t just about the numbers, it’s also about adaptability and taking care of your people.

Pluxee Gifts make it easy to reward your employees, keeping them engaged and motivated through milestones and year-round achievements. With the right strategies in place, your next fiscal year can be your most productive and rewarding one yet.

Want to know how Pluxee can help you ace your fiscal year? Book a free consultation here.