Get Your Accounts in Order for the New Year
As we approach the end of the year, it’s safe to say that many of us will be relieved to see the back of 2020. For businesses, the challenges of the past year have been unprecedented, but as we look ahead to a new year, it’s the perfect time to focus on getting your accounts in order.
Being organised is a cornerstone of business success. Staying on top of your accounts not only ensures compliance with tax regulations but also provides a clear understanding of your financial position. Whether you’re planning for growth, managing cash flow, or preparing for tax deadlines, having accurate and up-to-date accounts is essential.
To help you prepare for the year ahead, we’ve created a guide to ensure your accounts are in great shape for 2021.
Steps to Get Your Accounts in Order
Invoice and Chase Payments
Managing invoices effectively is crucial for maintaining healthy cash flow within your business. An efficient invoicing system allows you to track payments, issue reminders, and stay organised.
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As the year comes to a close, take the time to ensure that:
– All invoices are up to date.
– Any outstanding payments have been chased.
– You have as much cash as possible in the business to start the new year strong.
Don’t hesitate to chase overdue payments promptly. Establishing clear expectations with clients around payment terms will create good habits and improve your cash flow.
Reconcile Your Bank Account(s)
Reconciling your bank accounts might not be the most exciting task, but it is essential for accurate record-keeping. At the end of each month, make sure that all transactions recorded in your accounts match the actual transactions on your bank statement.
This process helps you identify any discrepancies, ensure all income and expenses are accounted for, and maintain a clear financial picture for your business.
Keep on Top of Taxes
Tax deadlines can be stressful, especially if you’re not prepared. One of the most important steps you can take is to set aside money regularly to cover your tax obligations. This ensures that you won’t be caught off guard by a sudden tax bill.
Here are some key areas to focus on:
– **Corporation Tax**: Ensure you’ve allocated funds to pay your Corporation Tax when it’s due.
– **VAT**: Track your VAT obligations and set aside the necessary funds.
– **PAYE and NICs**: Make sure you’ve accounted for payroll taxes and National Insurance contributions.
Remember, the self-assessment tax return deadline is January 31st, 2021. If you’re self-employed or have other income outside of your PAYE job, now is the time to prepare and submit your return.
Review Your Financial Performance
The end of the year is a great time to reflect on your business’s financial performance. Review your income and expenses to identify trends, pinpoint areas where you can cut costs, and set realistic goals for the year ahead.
This process not only helps you make better financial decisions but also ensures that your business is on track to achieve its objectives in 2021.
Need Help Getting Your Accounts in Order?
At React Accountancy, we specialise in helping businesses of all sizes manage their accounts efficiently and effectively. Whether you’re a start-up, a growing business, or an established enterprise, we offer tailored accountancy services to meet your unique needs.
Why Choose React Accountancy?
– **Trusted Expertise**: Our team has years of experience in providing professional accountancy services across a wide range of industries.
– **Personalised Service**: We take the time to understand your business and offer solutions that work for you.
– **Hassle-Free Support**: From bookkeeping and tax planning to financial forecasting, we’re here to make your life easier.
Contact Us Today
If you’re ready to get your accounts in order or need advice on any aspect of financial management, we’d love to hear from you.
– Call us on 0191 432 4110
– Email us at info@reactaccountancy.co.uk
– Visit our website at React Accountancy
Let us help you start the new year with confidence, knowing that your accounts are in great shape!
Get A Free Quote
We believe in working with our clients to make accountancy services easy. Get year-end accounts, CT600 corporation tax, payroll, bookkeeping and management accounts made easy.
