3 things every business should do at tax year end

Posted by:

As a business owner, whether a small business or a freelancer, you need to get ready for the start of the new tax year. OK, so the 6th April it is not as exciting as the real New Year on 1st January but it is important when you’re a business owner.

In the UK the tax year runs from from the 6th April to the following year’s 5th April. The tax year for 2018-2019 will soon be drawing to a close, and 2019-2020 abut to start.

In preparation for the new tax year, we thought we would share our top tips.

3 tips for businesses for the new tax year

 

1 Make sure your bookkeeping is up to date and accurate

Updating bookkeepingThe first item on your year end checklist should be making sure your bookkeeping records are up to date an accurate.

When you are busy running a business it can be very easy to let a month, or even more, slip by and not find time to catch up on your bookkeeping. This is why outsourced bookkeeping is one of our most popular services. Very often those loose ends don’t get tied up immediately and they can end up being a headache later down the line.

To ensure accuracy, you should reconcile each bank and/or credit card statement to what you have in your accounting records. You need to be doing this at least every month to keep on top of it. If you struggle to find the time, then think about doing what so many businesses do, and outsource it.

2. Check the bigger picture

End2End sees the bigger pictureWhen you are running your own business, it is too easy to get wrapped up in the day-to-day running of your business. You check emails, fulfill orders, negotiate with clients, create products, the list just goes on and on.

This is a good time to take time to reflect on your business and look at the bigger picture and check that your vision is still aligned with your day to day, week to week goals. You need to take a moment to rise above the nitty-gritty and see what has worked well, where you could improve and what goals have you achieved.

Answering these questions will certainly help you make and continue to make profitable business decisions in the future.

It can make perfect sense to bring in an outside perspective to this review and look at the strategic and tactical side of your business. We work with both small and larger businesses in a strategic way and also deliver financial mentoring and guidance.

3. Plan the coming year

End2End financial planningOnce you have your bookkeeping up to date, have reviewed your previous year, and looked at your bigger picture it’s time to plan for the new financial year.

You need to review and set your SMART goals for the next financial year. SMART goals are Specific, Measurable, Achievable, Attainable, Relevant and Timely. Goal setting is a necessary part of business growth, and year end is a great time to set them. Setting the right goals will keep you motivated and focused. SMART goals will let you achieve this.

Part of your plan to reach your goals should be your budget.

Well we all know what a budget is. It’s an estimate of future income and expenses for a set period of time. Your budget should be broken down into smaller periods such as monthly or quarterly. It should align with you SMART objectives and be reviewed regularly.

All set or need some help?

People helping one anotherIt can be very difficult as a small business. You find yourself wearing many hats and some of them don’t fit too well. Are you a creative and keep putting off the bookkeeping? Is you business rapidly growing and you are trying to enter a new market? Are you just too busy to plan your budgets? Are those expense receipts piling up?

The tax year end can be the perfect time to take stock and look at what your strengths are and what you should be focusing on in the coming year. Then look to bring in help and guidance in those other areas.

Check out some of the areas that we help businesses with in our services section, such as Tax and Accounting, Management Reporting, Market Entry, CFO Services to get an idea of where we can help you grow your business.

If you want to get in touch then please Contact Us and we can work out where we can help you achieve your goals.

 

 

 

 

 

 

0

About the Author:

  Related Posts

Add a Comment