Submitted by
Holly Nesbitt | on Wed, 05/08/2024 - 15:15 | In
HMRC The days are getting longer…your end-of-year taxes have been filed (we hope). Now, all that is left to do is to dust off the cobwebs on your finances, so you can spring forward with confidence.
While we may be using the spring cleaning metaphor as a bit of fun, the message here is the same: now is a great opportunity to realign your financial strategies with your business goals.
Here’s how you can have a strategic March and a better rest of the year.
1. Organise your financial documentation, books and reciepts
If your books aren’t up to date, this should be your focus. If you’ve fallen behind on your accounting tasks, block some time to get them done. If you’re still keeping paper records of documentation and receipts…consider digitising them. There are so many great software solutions to help you get organised, not to mention that they will make your life and your accountant’s life so much easier.
While this will be a big task in itself, try to think of the benefits that future you will experience. Everything will be organised, you will be able to retrieve documents, invoices, and receipts so much quicker, and anything that reduces future time spent on administrative and manual tasks is a win.
2. Analyse expenses and cash flow
If you don’t do it as often as you should, now is a good time to really delve into your data. You may be surprised by the insights you gain. Here are a few things we recommend doing:
- Analyse your cash flow – Were there any shortfalls or surpluses? If so, why? Are there any areas that you should be devoting more of your resources to?
- Review and adjust your budget – Compare your budget with your actual spending, and identify areas for adjustment. You can then update your budget to better align with your operational needs and strategic goals.
- Set new financial goals – Informed by your financial review, set new objectives for the short, medium, and long term. These goals should guide your strategic decisions and financial practices for the year.
- Cut unnecessary expenses – Audit recurring expenses and subscriptions to eliminate non-essential costs. This can lead to significant savings and a more efficient cost structure.
3. Streamline your billing and payments
If you haven’t already, automate your accounts payable and receivable. Many programmes can do this (such as Sage Intacct, FreshBooks, DocuWare, etc.), all of which enhance efficiency and minimise errors. While this is an investment, an automated process means timely transactions, every time, and a significantly less administrative burden on your team.
The same goes for digital payment solutions too. Digital payments provide a faster, more secure way to manage finances, giving your cash flow a much-needed boost.
4. Review your tax planning strategy
What better time to review your tax planning strategy than end of year? If you want to ensure compliance and maximise your benefits for the year ahead, it’s highly recommended that you meet with your accountant or tax advisor at year-end to talk strategy.
They can inform you of any new tax laws (which there are bound to be); they can make sure that you’re leveraging all available deductions and credits to save on tax, and they can explore potential savings and provide tailored strategies to optimise your tax position. See now why we highly recommend it?
5. Invest in growth
Reinvesting profits into key growth areas such as marketing, product development, or expansion is vital for sustained business growth. So consider which areas will offer the best return on investment.
If it’s relevant, you can also use this time to diversify your investments or identify new investment opportunities that align with your new strategic goals.
Spring forward with financial vigour
Spring cleaning your business finances is more than a seasonal chore; it’s an opportunity to realign your financial strategies with your business goals. By streamlining processes, optimising accounts, and focusing on growth, you’re setting the foundation for a successful year ahead.
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