Financial Resolutions for the New Tax Year
While the dawn of a new tax year may not involve as much celebration as a new calendar year, we still think it’s a great time to stop and reflect. You can consider what your business has achieved over the last year, and what you’ve learned in readiness for the year ahead.
This is also a great time to make some resolutions – whether that’s cutting out bad business habits, or opening yourself to new opportunities.
While every business is different in its goals and challenges, there are a few financial tips that everyone can benefit from as we move into 2017/2018. Here are our 6 resolution pointers to help you plan for an even better business year.
1. Review your growth and goals
A new business year offers a chance to consolidate what you want to achieve. Ask yourself how your revenues and profits compare with previous years, and where you see that trend continuing.
It’s particularly important to review how your business goals fit in with the wider market. The business world is constantly changing, and your position may not be the same as it was a year ago. Take time to do a competitor review at the beginning of the year, and use this as a benchmark to stay on top of the market throughout the year.
Make a resolution to review your growth and goals more regularly across the year, on a quarterly or even monthly basis. You may want to get some professional advice from an accountant on how to realistically plan for the coming year.
Take advantage of free resources available that will help you to innovate and streamline your business. At MHA Carpenter Box we offer a wide range of free seminars and events designed to enlighten and empower businesses to grow their bottom line, such as BITE, a free one-day event focusing on Business, Innovation, Technology and Efficiency.
3. Review your bookkeeping habits
Good bookkeeping habits don’t just make it easier for you to keep on top of your finances – they also facilitate conversation with your accountant, ensuring that everyone’s on the same page.
Avoid the disorganised panic at the end of the next tax year by putting robust processes in place now. Include time during each working week to manage your books. Even one hour a week to sanity-check your transactions and log your expenses will give you a running idea of how your business is doing, allowing you to nip any problems in the bud.
4. Update internal systems
It’s not just your overall finances that will need reviewing for the new tax year. Updating systems such as payroll with new advances in mind will keep things running smoothly for all of your employees.
This is a good time to ensure that all of your employees are paid online by direct deposit, saving the company time, money and resources.
You may also want to review any systems in place for paying bonuses. Your accountant can advise you on the best time for paying bonuses within the new tax year, bearing local legislation in mind.
5. Track time and efficiency closely
Time is money, as the old adage says, and there are always ways that you can improve your efficiency to ensure that little bits of lost time aren’t adding up to lose you money.
Review the day-to-day processes across your business, and find out where interruptions are regularly occurring. Based on this, you can consider structuring your working day – and your employees’ – more efficiently.
Perhaps meetings could be more productive if scheduled earlier in the day, or afternoons could be used more effectively with a designated lunch hour in place. The answer is different for every company, but keeping an eye on where billable time is going will maximise profits regardless.
6. Get up-to-date with accounting software
As the government’s Making Tax Digital policy grows nearer and nearer, a great resolution would be keeping ahead of the curve by upgrading your accounting software.
A good online accounting option would allow you to access your accounts whenever you need, and wherever you are, as well as give your accountant access to all your running totals. With powerful encryption and remote backups, cloud accounting is a secure option, allowing only the people you choose to access your important financial information.
We partner with a number of top cloud accounting software providers. Our cloud specialists can help you find a provider that would best suit your business needs, and allow yourself some accounting peace of mind.
If you’re looking for a little extra help with making your new tax year resolutions, don’t hesitate to get in touch on 01903 234094. Our business and tax advisers can keep you updated with the latest business tips to ensure that this financial year is a productive and profitable one.