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Planning Your Year End Ahead of 2025
Whether your financial year ends on 31st December or 31st March, the end of 2024 is a good idea to start planning and thinking about your year end. This is a crucial step for any business owner or CEO as it will help shape the direction their business will take in 2025. Accurate year-end financial planning results in smoother operations and improved financial clarity as well as allowing the business owner to make concrete strategic growth plans. In this guide, the expert accountants and business advisors at SW&P have put together some advice to make it easier for you and your accountant when reviewing the balance sheet at the end of 2024.
Review your Financials
It goes without saying that before reviewing your year-end accounts you must produce a balance sheet. This is a good way to review your current situation and identify business growth opportunities and areas requiring immediate attention. Completing this step with the help of the SW&P team will allow you to focus on the operational side of the business.
Prepare Tax Deadlines
Year-end accounts usually mean the end of the tax year is nye, so it is important to use this time of year to prepare for tax deadlines. This means gathering the relevant documentation to prepare for when you must file your personal and corporation tax returns and your VAT adjustments.
However, it is also the opportunity to discuss tax allowances your business might be entitled to such as R&D tax credits and capital allowances. At this point, it is also a good idea to approach the subject with your accountant or business advisor as they will have a good idea of what you will be entitled to.
Strategic Planning for 2025
Once you have reviewed your balance sheet and prepared for upcoming tax deadlines, you can start planning for 2025. Business planning exercises such as competitor analysis and market analysis will help you set realistic business objectives for the upcoming year because you will be more aware of market trends and will know how your competitors might react to any new investment. If you are unsure how to proceed, we recommend you contact an accounts practice such as SW&P to ensure your goals align with your business’s financial situation.
Employee and Team Considerations
It is not usual for anyone to believe that year-end accounts only revolve around the business situation, but that couldn’t be further from the truth. The end of the financial year is the perfect opportunity for any business owner to consider the human side of business. It gives you the opportunity to review payroll and benefits, discuss bonuses, holiday allowance and training plans.
It is important to remember your employees are those contributing to your business’s good financial performance, so even though it isn’t compulsory, you could consider bonuses, pay rises or offering additional benefits.
Legal and Compliance Checks
Making time for contract renewals, and software licence renewals, and ensuring you comply with regulations such as GDPR is a must because you will need to make the appropriate budgetary provisions to accommodate these requirements. This is the best to keep your business operations running smoothly and avoid fines. If this seems a daunting task, you can always get in touch with your accountant for support and advice.
Prepare Early for a Smooth Transition into 2025
Whether your financial year ends in January or in April, the end of the calendar is when you should start planning for the upcoming year. This will ensure your business is ready to face any eventuality and can focus more on the operational side. However, solely focusing on the balance and neglecting tasks such as licence renewals, planning business growth, and taking care of your team will be detrimental to your business over the next 12 months. At SW&P we recommend you book an appointment to come and see us to discuss year-end accounts and financial planning for 2025 with experts who will help.
