The financial year end: how to prepare

As we approach the financial year end many of you will be asking how to prepare for it. In the following article, we provide solutions to help make the transition easier. Here are our top five tips to get you off to a flying start:

Tip 1: Seek professional advice from your accountant

Our first tip is to seek the right advice from an accounting professional (such as us). Together, we can help you prepare for the end of the tax year.

We will help you by answering important questions, such as:

  • “How can I see how much tax is due this year?”
  • “How can I be more up to date?”
  • “What documents am I expected to provide?”

It’s interesting to note that spreadsheet-based accounts are on average sixty days old at any one time. This is why we encourage all of our clients to use cloud accounting, because it is easier to keep up to date. Also, photographing your receipts as you go, ensures that you always have a copy of your expenses, regardless of whether you have disposed of the original receipt or not.

The most commonly asked question, and the one that everyone wants to know is: “How can I pay less?”. We can answer all of these questions and more, as your trusted business advisers.

Tip 2: Familiarise yourself with your financial situation

Our next tip is a nudge to review your business’s finances. In reality, you should be doing this regularly anyway. However, lots of business owners struggle to keep on top of everything because they are incredibly busy.

It is essential to keep on top of the figures though, because without them, you literally have no idea how your business is performing. We recommend that all of our clients upgrade to using a cloud accounting solution, because it means that you can review your data far more easily. Moreover, cloud accounting enables you to securely import key documents and receipts on the go, anytime. It’s super easy and convenient. Plus, you can create fully customisable Profit and Loss spreadsheets on the go.

Tip 3: Plan your financial year end ahead of time

We suggest that all business owners do this, because it is important to plan ahead and to prepare for the inevitable peaks and troughs. Also, once you are clear on what you want to achieve, we can help you.

We strongly recommend that all of our clients keep their business and personal expenses separate. Furthermore, it’s also worth setting up dedicated bank accounts and credit cards, in order to keep a track of your income and expenditure. At the end of the day, we all want to claim for as much as we can, but our job is to ensure that you claim for the right things, in the correct way.

Tip 4: Start the new year with a clean slate

Tying up your loose ends now can make the transition from the current tax year to the new one far easier. We suggest that you review all of your invoices to check for any outstanding payments. It’s also worth checking to see if you have any bills to pay.

Do you have any cheques or cash to process at the bank? Have you invoiced all of your clients correctly? Have you uploaded all of your invoices and receipts to your cloud accounting package? Resolving these issues now, will ensure that you are ready for the year ahead.

Tip 5: Using a cloud accounting package could save you time

Using cloud accounting software can help you and your accountant process your figures more easily. This is because all of your data is stored in one convenient place. Moreover, having all of your information in the cloud means that you access it any time and any where. Plus, you can reduce the chance of a backlog. Backlogs were typically associated with paper-based records, but now they can be a thing of the past! Keeping on top of the bank reconciliations is far easier nowadays with a cloud package too.

We hope that you enjoyed reading our top five tips to help you prepare for the financial year end. If you’d like to know more about this, then feel free to get in touch with us at: enquiries@farnborough-accountants.co.uk.