We are very busy at this time of the year as we seek to catch up with all of our business owners to discuss their FY23 planning and business strategy.

 

The economic landscape around us is now fast becoming more and more uncertain as inflation creeps higher, unemployment and interest rates come off historic lows and Government debt passes through to an all time high.

 

As some compare our economy to the time of stagflation a few decades ago, there are some important differences today. The actions by the Reserve Banks and Governments around the world in the coming months are going to be very important to watch as the implications may be very far reaching abroad & into our own domestic economy.

 

To stay ahead in FY23 it’s important you are planning how to deal with inflation on both your pricing mechanisms and to keep your margin and costs under control.

 

De-globalisation is now an active trend, due to supply chain and political challenges, so the transition of re-shoring, onshoring and near shoring is now very visible across the globe.

 

FY23 is shaping up to be a year where we will see successive increases to interest rates, continuing challenges in supply chains and significant wage growth that desperately tries to keep up with inflation. Where our economy is going to land over the next 12 months is extremely difficult for anyone to predict.

 

However, the stagflationary environment today is showing the warning signs that we are about to enter tough times.

 

Planning and having strong strategic plans for your business is now extremely important. Monitoring cashflow and having a backup plan that isn’t dependent on the Government this time around is now more important then ever. As your trusted advisors we are ready to support you through FY23 and the challenges it is going to bring.

 

Feel free to reach out anytime to discuss your business plans over a coffee, we are here to help.

 

Lejo Ouwendyk FCPA