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How to End Your Financial Year On A High

How to End Your Financial Year On A High

March 3, 2024
Deborah Edwards

We've got the 1st of January for new years resolutions and September always has back to school vibes for us all, but have you thought about your new business year as being the time to wrap up and reset your business?

Here are some key points for you to consider in those last few weeks:

  1. Review Financial Performance: Don't wait until the year is over before you take  a deep dive into your financial statements for the year. If you do nothing else, look at your two things; your year to date sales and your profit. Ask yourself if you've achieved what you set out to do. There's still time to push on through to that goal!
  2. Tax Control: With the year-end fast approaching, you've still got time to influence your tax. If you are thinking of buying equipment or investing in something else for your business, it usually makes sense to buy it before the year end so that you receive the tax deduction benefit one whole year earlier. (Note this doesn't apply to stock if the stock is still in hand at the year end). It may also make sense to make a lump sum payment into your pension from your business if your profits are high. Consider consulting with your accountant & financial planner to ensure you're maximising tax-saving opportunities while remaining compliant with HMRC.
  3. Cash Flow Management: Assess your cash flow position and take proactive steps to manage it effectively and given that balance sheets are visible online for limited companies, having a strong cash position is good PR. This may involve chasing in those straggling debtors (people who owe you money) or even delaying paying suppliers where possible (just be mindful of compromising relationships or your own values & mindset). Maintaining healthy cash flow is essential for sustaining day-to-day operations and having a business that leaves you feeling confident and stress free.
  4. Planning for the New Year: If you haven't already, start thinking about your aspirations for the next year so that you start as you mean to go on.  Use insights from looking at this years performance to set realistic revenue targets and allocate resources efficiently. A well-thought-out plan serves as a roadmap for achieving your business objectives and ensures financial discipline (not to mention achievement and success!) throughout the year.
  5. Team Engagement and Retention: Your team is one of your most valuable assets. Take this opportunity to assess team satisfaction and engagement levels. Recognise and reward top performers, address any concerns or issues, and think about how you will ensure you retain top talent. Share your plans with you team and get them excited for the year ahead as well as recognising what they have achieved this year, never forgetting the question "what's in it for them."
  6. Compliance and Regulatory Updates: Stay informed about any changes in regulations or compliance requirements that may impact your business operations. This includes areas such as employment law, data protection, and industry-specific regulations. Ensuring compliance not only mitigates risk but also fosters trust and credibility with customers, partners, and stakeholders.

Here's to finishing the year on a high note, finishing strong and setting the stage for success in the coming year!