Autumn is my favourite time of year. As the long evenings get shorter, there’s nothing like sitting out in the garden cuddled up under a blanket and enjoying the warmth that is still within the ground. That, and I always get a buzz around September due to that back-to-school feeling; the promise of something new.
As autumn leaves begin to fall and the school year kicks off, it’s the perfect time to shift gears and focus on your business’s financial health. Think of it as your business’s own back-to-school season! Just as students prepare for a new academic year, you should prepare for the financial year ahead.
In this blog, we’ll walk you through some essential back-to-school financial tasks that business owners should tackle. Obviously, not everything might apply and you may have certain additional tasks that are bespoke to your business, but by getting at least these tasks sorted now, you’ll set yourself up for success and avoid the stress of last-minute tax prep.
Back-to-school financial checklist for your business
- Get your financial documents ready to send
Just like students gather their school supplies, it’s time for you to gather your financial documents. Especially if you need to file a tax return (and haven’t already done so already), as you should be aiming to send your information to your accountant ASAP.
Now is the time to get prepared and not leave it until the last minute, so ensure you have the following on hand:
P60 or P45: If you or any of your employees have left or joined the business after April 2023, ensure you have the correct P45 forms. Otherwise, you or any ongoing employees, will need a copy of the P60 form as it summarises earnings and taxes paid over the year.
P11D Forms (if applicable): If you provide benefits to employees, make sure you have the P11D forms that detail these perks. This includes company cars, private medical insurance, and other benefits.
Shareholdings and Dividends: Document any shareholdings you have and the dividends received. This is crucial for accurate reporting and tax calculations.
Interest Received: Gather records of any interest earned from business accounts or investments.
Pension Payments: Compile details of any pension contributions made. This could impact both personal and corporate tax obligations.
Charity Donations: If you or your business makes donations under the Gift Aid Scheme, collect the details. These contributions can be beneficial for tax relief.
Child Benefit Details: If you or your partner receive child benefits, ensure you have all relevant information, as this could affect your tax position.
** Everything that you do need for your Return should have been sent to you by now, but if it hasn’t or you’ve misplaced it, now is the time to chase these.
- Prepare for filing your tax return
Now that you’ve gathered your financial documents, you may as well get ahead start on the filling. Whether you’re filing on your own or you work with an accountant, make sure you:
Know the Deadlines: Familiarise yourself with the key tax deadlines throughout the year. Late submissions can lead to penalties, so being aware of these dates helps you stay on track.
Have Organised Receipts and Invoices: Keep your receipts and invoices well-organised. This will make it easier to track expenses and claim any deductions you’re entitled to.
Review Your Accounts: Conduct a thorough review of your business accounts to ensure everything is accurate and up-to-date. This includes reconciling bank statements and checking for any discrepancies.
| Need help filing your tax return?Get in touch with us at [email protected] – we’d be happy to help! |
- Plan for the upcoming year
Last but not least, our back-to-school financial checklist for your business isn’t complete without recommending that you plan for the upcoming financial year. We typically work with our clients on the following areas around this time, so here are some areas you should be focusing on now :
Budgeting: Develop or revise your budget based on past performance and future projections. This will help you manage cash flow and make informed financial decisions.
Tax Planning: Explore tax-saving opportunities such as allowances, deductions, and credits that could benefit your business. Consulting with a tax advisor might be beneficial for personalised advice.
Set Financial Goals: Define clear financial goals for the year ahead. Whether it’s increasing revenue, reducing costs, or expanding your business, having specific targets will help you stay focused.
Remember, “back-to-school” means back to business!
By taking a proactive approach now when it comes to your finances, you’ll pave the way for a smoother, stress-free tax season and set a solid foundation for the year ahead. So keep this back-to-school financial checklist for your business to hand and use it!
Use the back to school season to get back to your business and keep your business in top shape, ready for any financial challenges that may come your way.
After all, just like with school, preparation is key to success!
Need help and support?
Feeling overwhelmed? You don’t have to go through it alone!If you want to work with an accountant who keeps you ahead of the curve, get in touch with us at [email protected]. Our job is to make sure you’re compliant, you avoid any nasty late penalties, and most importantly, you have complete peace of mind that you’re doing what you need to.
