It’s the end of the financial year in the UK. What now?

It’s the end of the Financial Year in the UK: What UK Businesses should do now.

As we end another financial year, businesses across the UK find themselves at a great point for reflection, assessment, and strategic planning.

Whether you're a seasoned entrepreneur or a fledgling startup, the end of the financial year presents an opportunity to take stock of your achievements, address any lingering financial matters, and set the stage for future success.

Now I know that this is the bit that MANY business owners hate. The numbers! BUT it’s really important to have a hold of your numbers to help move your business forward over the next financial year. You need to know if your sales are up or down. What product or service made you the most money? How many subscriptions are you still paying for that you have no idea what they are for?

In this blog post, we'll delve into what UK businesses should be doing now to kickstart this new financial year.

Complete your Self Assessment

That’s right! If you are self-employed, you can submit your self assessment anytime from now until January 31st. But PLEASE, don’t be the person to leave it to the last minute.

Did you know you can submit your completed accounts from now? That’s right! And you don’t have to make your payment until the end of January still.

How nice would it feel to know your financial responsibilities TEN months before they are due?

Now, if you are a larger company, or you have an Accountant to do your books for you, don’t doubt that they would love to get your accounts done early too - they don’t love January for a reason - too many people leave it to the last minute!

If you’re someone who does their accounts at the end of every month (like me 😇), it took me 15 minutes to end my financial year, because it was the same as every other month. I still have to submit my return to HMRC, but I’ll be doing that in the next week or so and then I’ll forget about it until my reminder goes off in January to pay it. (Plus July if you pay money on account).

Assess Your Financial Health

The end of the financial year provides a natural checkpoint to take a look at the financial health of your business.

Begin by reviewing your financial statements, including your profit and loss statement, balance sheet, and cash flow statement.

Analyse your revenue streams, expenses, and profit margins to gain a comprehensive understanding of your financial performance over the past year.

Identify any areas of concern or opportunities for improvement, such as excessive spending, declining sales, or overdue invoices.

If you are using accounts software such as Xero, FreeAgent or Quickbooks, these can all be produced at a touch of a button if your daily accounts are up to date and don’t have to be scary! You don’t even need to understand everything, but you do need to know what makes you money in your business and what costs you money in your business.

Now, my number one piece of advice to you is to do your accounts at the end of every month. That way it’s easier to remember transactions that are only a few weeks old and it also means that come year end, it’s just another month!

By conducting a thorough financial assessment, you can pinpoint areas that require attention and devise strategies to optimise your financial management moving forward.

Set SMART Goals for the New Financial Year

Take this opportunity to set clear and actionable goals for the upcoming year.

I know you’ve heard it all before (yawn!) but use the SMART method of setting your goal — Specific, Measurable, Achievable, Relevant, and Time-bound — to set goals that are both ambitious and attainable.

Whether you want to increase sales, expand your customer base, or launch a new product line, ensure that your goals are aligned with your business objectives.

Break down larger goals into smaller, manageable tasks and establish deadlines to keep yourself accountable.

Review Your Tax Obligations

It's essential to ensure that your tax affairs are in order.

Take stock of any outstanding tax liabilities, including income tax, corporation tax, and VAT, and make arrangements to settle any outstanding payments promptly.

Review your financial records to ensure that you've claimed all eligible business expenses and deductions, maximizing your tax efficiency while remaining compliant with HMRC regulations.

If you're unsure about any aspect of your tax obligations, seek advice from a qualified accountant or tax professional.

The end of the financial year is a great time for reflection, planning, and action for UK businesses.

By conducting a thorough financial assessment, setting SMART goals, and addressing tax obligations, you can position yourself for success in the new financial year.

Good luck!