For many business owners, the end of the financial year can leave you wanting to tear your hair out. The pressure to meet deadlines, gather all the financial data, and file accurate tax returns can leave you feeling a little overwhelmed. Without proper planning, it’s easy to become buried under a mountain of paperwork and administrative tasks. Missing receipts, inaccurate numbers and a pile of unpaid invoices are all why you’ll most likely need the help of a skilled accountant to get you through it.
But do not fear, as we have put together our top end of financial year tips. So you can navigate your year-end accounting like a pro and set yourself up for success in the year ahead. Now, let’s begin.
What does the end of the financial year mean?
The financial year for 2024, or tax year as you might call it, ends on 5th April, with the new year starting on the 6th. Not to be confused with your company’s end of year accounting, which can differ depending on when you first start trading. The tax year itself applies to personal or self assessment tax returns.
However, we know that businesses commonly use this date for their year end accounting too. So with that in mind, if you have decided on this date as your year’s end it’s time to wrap up your accounts, reconcile transactions, and have everything prepared for the tax man so they can work out exactly what you owe. It’s also the time to assess your business’s financial health, tie up any loose ends, and lay the groundwork for the coming year.
So, with that in mind, here are our end of financial year tips to make sure you are prepared come April.
Have a clear schedule
When it comes to end of financial year tips and having your financial s*** together, it all begins with a clear plan of action. Start by having a schedule of what dates you plan to get everything on your tick list sorted by. This will help you meet your deadlines and keep everything organised and operating like a well-oiled machine.
Get your accounts in order and up-to-date
While your accounts should be in good working order anyway, especially if you are using the services of an experienced bookkeeper, this is something you should prioritise when it comes to aligning your annual finances. Having to scramble at the very end of the financial year in order to get all the information you need is a major headache you don’t want to happen.
When it comes to your end-of-year accounting, every penny counts. So make sure that you reconcile your transitions with your bank statements to ensure they are all accurate, accounted for and no issues need to be addressed.
Using accounting software like Xero will make this process a whole lot easier. That’s why we are Xero accountants ourselves. It will help you streamline the process and provide you with everything you need to stay organised. Plus, all your data is stored in the cloud, so you don’t have to worry about a last-minute computer crash losing all your financial data.
Get your invoices paid
You don’t want to start the new financial year off by chasing up late payments or owing money yourself. Therefore, getting all your invoices in order and paid is essential to starting the year off right. After all, you want to have a clear picture of what your business accounts actually look like, and have your books paint a true financial picture of your business.
Review your spending
The end of the year is the perfect time to examine your business expenses and identify any areas where you can trim the fat. Look for opportunities to reduce costs without sacrificing quality or service. This can include negotiating contracts, switching to more cost-effective suppliers or sniffing out some cost-saving measures to improve your profitability and strengthen your financial position in the long term.
Wondering what money saving practices you could apply? Get in touch with our team of accountants for creatives and we can help point you in the right direction.
Understand your expenses and what you can claim
Getting a handle on all your expenses can be a bit of a nightmare, but claiming for everything you are owed will help bring down your tax bill, putting more money in your back pocket. Having organised records of all your expenses will help you establish exactly what you can and can’t claim. A competent account will be able to maximise your deductions, so you keep more of your money.
Review your finances and plans for the year ahead
It’s out with the old and in with the new, and the end of the financial year provides an ideal opportunity to reflect on your business’s performance and decide what’s next for the future. Review your financial statements, key performance indicators, and business objectives to see the progress you have made and identify any areas for improvement. This is also the time to set your budget and come up with a strong game plan to really crush it in 2024.
So, what type of accountant should I choose?
Now you have more end of financial year tips than you could shake a stick at it’s time to choose the right person to execute them. You want to choose an accountant who knows your industry inside and out. That way, they can save you more money by understanding the tax obligations (and breaks) specific to your field and help you make smarter financial choices. As expert creative accountants, we know the creative industries like the back of our hand and understand how to set you up for better business success.
So, if you are in need of some professional help, then get in touch with us today. As expert creative accountants, we are here to tackle all your accounting tasks so you can focus on the future of your business.
