As the financial year ends, many business owners scramble to organise their accounts. Whether you're a sole trader, limited company, or large enterprise, leaving it to the last minute creates unnecessary stress. To avoid this, plan ahead.
Starting earlier will not only ease pressure but also help you make informed financial decisions. At House of Numbers Ltd, we offer services to help you stay on top of your finances throughout the year.
1. Keep Accurate Records
Maintain detailed records of all transactions, including:
• Sales invoices
• Purchase receipts
• Bank statements
• Payroll
• Expenses
Consistent record-keeping prevents last-minute chaos and ensures you don't miss deductible expenses.
2. Use Accounting Software
Switch from manual methods to software like QuickBooks, Xero, or Sage. These tools streamline processes, track income and expenses, and provide real-time financial insights by syncing with your bank.
3. Stay on Top of Tax Obligations
Regularly review VAT, income tax, and national insurance obligations. Set aside funds for taxes and monitor changes in tax laws. Planning ahead avoids unexpected bills and identifies tax-saving opportunities.
4. Reconcile Bank Statements
Monthly reconciliation ensures your records match your bank statements, reducing errors and surprises when preparing year-end reports.
5. Separate Business and Personal Finances
Use a dedicated business bank account for all transactions to simplify tracking and avoid complications.
6. Prepare for Year-End
Before year-end, check:
• All invoices and receipts are accounted for.
• Inventory is updated (if applicable).
• Outstanding payments are addressed.
This ensures your accounts are accurate and ready for year-end reporting.
7. Seek Help Early
If you're unsure or overwhelmed, don’t wait. Professional accounting support ensures your finances are accurate and compliant.
8. Review Your Finances
Once organised, review your profit margins, expenses, and cash flow. Use these insights to plan for the next year and improve financial health.
What do business owners want most? With regard to taxes the overwhelming majority of business leaders (70%) said more certainly over the taxes they would pay. A planned approach for the next 5 years would be welcome and enable managers and owners to plan, especially for capital growth spending.
Let’s see if our new government adjusts corporation tax which was hiked from 19% to 25% by the last government in April 2023.
We need clarity and longer term planning! Small businesses are huge employers and boom and bust has a negative impact on us all.
Employer P60 and P11D dates: Dates for your diary.
The P11D form is used to report expenses and benefits provided to employees and directors. It must be submitted to HM Revenue and Customs (HMRC) by July 6th following the end of the tax year. The P60 form, on the other hand, is a summary of an employee's pay and deductions for the tax year and must be given to employees by May 31st. Both forms are important for reporting and reconciling tax liabilities with HMRC.
After some confusion amongst sole traders, HMRC has clarified treatment of training costs for tax purposes.
So, the cost can be deducted from trading profit or loss if the following two criteria are met:
1. the expenditure is incurred wholly and exclusively for the purpose of the person's trade; and
2. The expenditure is not capital expenditure.
Essentially, it can be included providing it is not in pursual of new skills for a totally unrelated business venture.
Tax savings mean - more fun travel
Company number: 13535219
Registered Office: Mornhill Farm, Burnt House Lane, Newport, Isle of Wight, PO30 2PL
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