Angus Brewer Senior Client Adviser

As your financial year-end approaches, there is never a more critical time to think strategically to save tax and map out a financial plan for the next year.

Snapshot Summary

As the financial year-end approaches, it’s key to strategically plan for tax savings and set financial goals for the upcoming year. Assessing the past year's performance is crucial for business growth, improving profitability, and aligning personal and business objectives. Ensure that you are well-prepared for year-end and lay a strong foundation for future growth by looking at the 5 key areas listed below.


It’s crucial that you spend some time assessing the performance of the past year and preparing for the upcoming one in view of growing your business, improving profitability, generating cash, and building a valuable business. This is key for business growth, maximising tax savings, and ensuring that your financial goals are aligned with your business goals. In order to ensure you are well prepared, we have outlined 5 key areas which we recommend focusing on ahead of your year-end.

Making space to clarify and document your own business goals for next year

Setting time aside to create clear financial goals is key as you prepare for the new year. It’s important to start by evaluating and reviewing the previous year -what went well, and what didn’t you manage to achieve? Consider why some goals weren’t achieved, as this can help to give an understanding of where some potential improvements need to be made, or perhaps extra resource is needed.

For the upcoming year, consider what you want to achieve out of the business financially, and as a business owner – how much time do you want to be spending in the business? It is important to ensure that you are aligning your personal goals with your business strategy.

Set a clear financial plan

Mapping out a financial plan for the next financial year includes a sales plan, people plan, overhead budgets, balance sheet and cash flow forecast. This means you can be sure that the plan is financially viable. When creating a financial plan, it is important to consider where you would like your business to be in 3 years, as this helps to ensure you’re taking steps to reach your long-term goals. It can be beneficial to speak to an accountant, or other financial adviser regarding your 3–5-year financial plan.

Review and improve your reporting

As you prepare for your year-end, take time to review and improve your financial reporting. Reliable reporting is a crucial aspect of running and growing your business, as it is the basis of making informed decisions. Are your management accounts giving you a true and accurate view of your financial performance and balance sheet position in a timely manner? If not, this needs to be in place for the upcoming financial year.

Get an accountability partner in place

Making sure that you have an accountability partner to help keep you on track with your plan for next year, this can significantly enhance your chances of achieving your goals. An accountability partner could be a mentor, professional advisor, a friend, or your accountant. Having regular meetings with your accountability partner to review your progress helps to ensure that you’re staying on track by holding you accountable throughout the year.

Pre-financial year-end tax strategy

Tax planning is a key aspect of your year-end financial preparations, ensure that you are sitting down with your accountant and tax adviser to discuss current year performance, and understand your expected tax liability for this financial year. We also recommend brainstorming tax planning strategies to reduce tax liabilities ahead of your year-end, this can save your business money and avoid any surprises when the tax year-end arrives.

Tax laws are frequently changing, and often complex to navigate yourself. Therefore we strongly recommend consulting with a tax adviser to ensure that you are implementing the most tax-effective strategies for your business.

We will be holding an event shortly after the Autumn Budget on the 30th of October. Join us to ensure you are up to date with the latest tax policy and changes.

Register Here
 

SUMMARY
By taking the above recommended steps, you will be prepared for your year-end, and also on a strong foundation for growth in your upcoming year.

If you feel you could benefit from some input from a business consultant or tax specialist to help assist with your year-end planning, we would be glad to assist. Feel free to reach out, and a member of our team will be in touch to arrange a call.

Get in touch today

For more information on how we can help you and your business, feel free to reach out to us via email or phone and we will be happy to advise on the best solutions for your business.

Please note: This article is provided for information only and was correct as at time of writing (17/10/24). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance.  No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.