The Small Business Guide to a Stress-Free End of Financial YearRebecca Bendikov
The end of the financial year can be a stressful time for small business owners due to the reporting obligations you have to take care of as a business. You have commitments to HMRC that you need to meet and information you need to give to your accountant. It can be especially daunting if there are new laws or regulations that apply to running a business.
The key to a stress-free financial year is to get organised and maintain a regular routine when it comes to your business finances. It is important to have the right information for doing your end of financial year reporting. This means using an easy accounting software like Cashflow Manager which stores all of your business information and will help you keep on top of your bookkeeping.
Here are some easy steps we have come up with to ensure that you are on track for your end of financial year.
Record all financial year transactions as you go and make sure this is done before the end of the financial year. This might sound straightforward, but recording all of your sales, purchases, payments and receipts regularly will take a lot of stress out of your tax time!
Complete your bank reconciliation as at the end of the year to ensure that your records match your bank records.
If you have an inventory, you may need to complete a stock take on or before the last day of the financial year. If you are using an accounting package like Cashflow Manager Gold, you will find this easy to do. A stock take will help you write-off any obsolete stock or investigate any shrinkage. It can also be beneficial to know the true value of your inventory.
Ensure all your payroll requirements are taken care of.
It’s a great idea to make yourself a backup outside your accounting program just in case something goes wrong. It will also mean you will have an easily accessible file to refer to in the future. Use a USB or CD, and make sure to store them safely. If you are using Cashflow Manager you can export your files and email them to your accountant, or hand them over on a USB.
Your year-end shouldn’t be all about crunching numbers and printing reports. It’s also a great time to reassess where your small business is heading and make some new plans. With all the regulation changes that occur, it is also a good idea to review your accounting software and make sure it is up to date as this means your business will remain compliant.