As the financial year draws to a close, creative and service-based businesses often find themselves juggling client work, deadlines, and last-minute admin. But a little preparation now can make a big difference helping you stay compliant, reduce stress, and uncover opportunities to improve profitability before the new year begins.
Here’s a simple guide to help you get your finances in order and start the next financial year on the right foot.
1. Review Your Management Accounts
Update your monthly or quarterly management accounts (and if you haven’t now’s the time to start), review your key financial metrics: revenue, profit margins, and cashflow.
Look for patterns: have certain services or projects been more profitable than others? Are costs creeping up in specific areas? These insights can help you plan smarter for the year ahead.
2. Chase Outstanding Invoices
Unpaid invoices are more common than most businesses admit. Review your debtor list and follow up on anything overdue. If late payments are a recurring problem, consider automating reminders or tightening your payment terms before the new year starts.
3. Organise Your Expenses and Receipts
Get your bookkeeping up to date; tidy records make your year-end accounts easier to prepare.
It’s also worth checking any recurring subscriptions or software costs. Are there tools you no longer use or could downgrade?
4. Check Director’s Pay, Dividends, and Pensions
Before the year closes, review how you’ve been paying yourself. The right mix of salary and dividends can improve tax efficiency and cashflow.
If you’re a limited company director, consider whether a pension contribution before year-end could help reduce your corporation tax bill.
5. Review Your Tax Liabilities
A proactive look at your estimated tax bill can save surprises later. Work with your accountant to forecast your corporation tax or personal tax obligations, and set aside the right amount in your business account now. That way, you can start the new financial year with a clear understanding of your available funds.
6. Plan Ahead for Growth
Once your numbers are up to date, use them to plan the next 12 months. Create a financial forecast projecting your likely income, expenses, and cashflow.
This helps you make informed decisions about hiring, pricing, or investment opportunities.
If you’re unsure where to start, your accountant can help turn your management data into actionable insights.
Final Thought
Getting ready for year-end isn’t just about compliance, it’s an opportunity to strengthen your business foundations. For creative studios, freelancers, and service-based businesses, the right preparation now can mean more focus, better cashflow, and smarter decisions next year.
If you’d like help reviewing your year-end position or setting up management accounts, we can help you get everything in order so you can focus on doing what you do best.
