The Christmas holidays are over, a new year has begun, and the kids are finally heading back to school. If you’re anything like me, you might feel a sense of relief as life returns to normal, allowing you to focus on your business and the year ahead.
However, before you get too settled into your routine, remember that 31 March is just around the corner. The process of compiling information for your year-end returns and getting it to your accountant begins again. For many, this can feel overwhelming. I often hear clients make bold promises: “This year, I’ll get everything organised and submitted early.” Unfortunately, just like New Year’s resolutions, these good intentions can quickly fall by the wayside. Life gets busy, and gathering last year’s information drops on the priority list—until it becomes urgent, critical, and stressful.
The good news is that this time of year presents the perfect opportunity to get ahead. By organising this year’s financial information now, you can not only ease the year-end process but also assess your business’s financial requirements for the new financial year. There’s still time to implement changes and improvements before 1 April.
Tips for a Smoother Year-End Process
- Complete Your Accountant’s Year-End Questionnaire Filling out your accountant’s year-end questionnaire thoroughly and providing all relevant information is crucial. This helps them prepare your financial statements and tax returns efficiently, ensuring the best possible tax position for your business.If you have missing bank statements or incomplete records, take the time to track them down before submitting your documents. This will speed up the process and reduce the back-and-forth with your accountant over missing information.
- Ask for Help When Needed If you’re unsure about what your accountant needs or find parts of the questionnaire confusing, don’t hesitate to reach out. Schedule a meeting to clarify any uncertainties. Consider this an investment in your own professional development—take detailed notes during the meeting and ensure you leave with a clear understanding of what’s required. These efforts can make future year-ends much smoother.
- Review and Improve Your Accounting Systems Use this time to reflect on whether your current accounting systems are meeting your business needs:
- Did your systems provide the information you needed to effectively manage your business? If not, how can they be improved?
- Are you using the right accounting software? Is it time for an upgrade?
- If you’re still using manual systems, is now the time to implement a proper accounting system?
- What challenges did your business face last year? How can you address these moving forward?
- Did you prepare budgets last year? If so, was the process beneficial? If not, is it time to start?
Discuss these points with your accountant. They may have valuable insights or suggestions for system improvements that could benefit your business. Remember, better accounting systems lead to higher-quality financial information, saving time and allowing your accountant to focus on helping you make your business more profitable.
By taking proactive steps now, you can reduce the stress of year-end and set your business up for success in the year ahead. Let’s make this financial year-end your most efficient one yet.