You may think it is too early to consider the end of the business or tax year, but a recent survey established by British Gas has discovered how unprepared some small business owners are when it comes to the end of the tax year.
In fact, it found that 27% of small businesses are not prepared for the year end which could lead them to going out of business completely. 54% of those businesses surveyed are looking for help getting ready for the end of the year and find the information available very confusing. With these figures in mind, it is very important that businesses take action now.
By setting up your systems early, the end of the tax year does not have to be a big worry. Technically, the end of the tax year is 5 April but HM revenue and Customs will accept 31 March as being the end of the tax year. You may be able to defer tax payments if your early year profits are expected to rise suddenly. However, many companies like to keep it simple by settling their bill early.
Make sure that you have an accountant to assist you with your accounting. If you are self-employed, you may want to download accounting software which will enable you to manage your accounts easily. These include a balance sheet which means that you can quickly keep track of what you owe in terms of tax and all of the money that you have coming in. You should make sure that you print off and look over your balance sheet every single month, so that you know when your business grows and what you can spend as a company.
Keep a forecast
Make sure that you project for the next 6 to 9 months for your cash flow forecast. This can be a little time-consuming but it does help to keep you prepared when it comes to the end of the tax year. Think about what would happen if your sales were down 10%, will this affect your business accounts? Make sure that you prepare a cash flow forecast and project your estimations on it so that you can be prepared and stay organised.
Talk to a professional
If you are really stuck and worried about the end of the tax year, it is important to talk to the right people so that you can express your concerns and worries. You may want to take out business finance to help tide yourself over. A business loan can boost your business in the short term and help you to stay on track.