In the UK, the new financial year starts on the 6th April. And now we’re into February, it’s probably a date you’re keen to get ready for. When the tax man is right around the corner, every business owner feels the need to double check everything is in the right place!
And as you’re getting ready, we highly recommend considering the 3 prep steps below. They can make up some of the most crucial elements of your company’s financial picture – and there’s nothing better than simplifying the financial world as a small business owner!
Check for Unpaid Invoices
You might already be chasing up a couple of later payments from a client or two, and that’s run of the mill business operations for most people.
However, you should also comb back through the previous 6 to 8 months and see if there are any unpaid invoices you completely forgot about. Even if you’re sure there’s none, double check. Because missed invoices can happen quite easily!
Now’s your chance to double check that all invoices for the year have been paid and can be signed off on.
And you’ve still got a good couple of months to chase up anything that’s seriously overdue. After all, if you pay tax on money you never actually made, you’re going to be at a loss.
Find a Bank Account That Makes Taxes Simpler
You may already have an accountant that works it all out for you. You can rely on them to manage your books, file your taxes, and make sure everything is paid on time each financial year.
But whether you do or not, it’s best to look into business banking options that make it easier for you to take records, keep them in all one place, and easily reference them when filling out a tax return.
Your options for a ltd company bank account are a lot more inclusive these days. And once the new financial year rolls around, you might want to switch and start that year off on the right foot.
Do Your Records Actually Make Sense?
Are there any payments on file that don’t quite line up? Has anything been accounted for twice? Is anything missing that’s showing up on your bank statement but not your actual books?
And in working all of this out, has it been fairly simple or a major splitting headache?
Because your records need to make sense overall as well, and not just in the fine details. You need to be able to find everything you need with just a few clicks or a simple search.
You shouldn’t ever be confused about when an invoice is from, or whether or not your books are showing the whole picture!
With the end of the current financial year not too far away now, it’s best to get these 3 prep steps done and out of the way. They’ll make it simpler to keep track of your cash flow and do your taxes.
