Spring clean your finances: get your business ready for the tax year ahead

Spring has sprung. For many of us, that means dusting some shelves, decluttering kitchen cupboards, and clearing out the stuff we’ve been meaning to deal with since this time last year. 

But your home probably isn’t the only thing that could use a tidy-up: there’s a good chance your company’s finances could also do with a bit of attention.

Getting your finances in order can give your company a clearer view of what’s going in, what’s going out, and where you can improve.

Here’s how to get started.

1. Review your accounts

Start by making sure your records are up to date. Check that:

All invoices have been issued and paid

• Expenses are recorded correctly

• Bank statements match the books

Getting everything aligned now will make preparing end-of-year accounts and tax returns easier, and could prevent unexpected surprises when deadlines hit. 

There’s a good chance everything’s already shipshape, but you won’t know for certain until you take a proper look.

2. Check for overlooked expenses

There’s a chance you’re eligible to claim costs you’ve forgotten about or ignored. Common items include:

• Office equipment and software subscriptions

• Travel and training costs

• Professional fees such as accountants or legal services

Even small amounts can add up, and claiming everything you’re entitled to can reduce your company’s taxable profit. Win-win.

3. Review subscriptions and outgoings

Now’s as good time as any to look at whether you’re paying for things the business doesn’t actually need. Do you still use every software subscription? Could any contracts be renegotiated? Cutting unnecessary costs can free up cash for investment or help with cash flow.

4. Check your tax position

With the tax year ending soon, consider:

• Corporation Tax obligations

• VAT returns and payments

• Any PAYE or NI contributions

If it looks like you might be paying more tax than you need to, a quick chat with your accountant could identify ways to reduce the bill.

5. Plan for the year ahead

Once your finances have been tidied up, it’s time to plan ahead. You might want to think about:

• Setting a budget for the next 12 months

• Forecasting expected income and outgoings

• Identifying upcoming investments or purchases

Having a financial plan can help you stay on top of cash flow and make strategic decisions with confidence.

Don’t leave things to the last minute

The weeks before the end of the tax year can feel hectic, and that’s why getting organised early is the smart move. Doing a financial spring clean now can afford you the time and space to make changes and avoid any last-minute scrambles, so you can head into the new tax year with a clear picture of your company’s health, and more control over your money.