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‘Clean year tax new for cobwebs’ the out
With a new tax year nearly upon us, it’s the ideal time for small
businesses to spring-clean their finances, improve administrative
procedures and streamline for the year ahead according to Bibby Financial
Services.
David Robertson, chief executive of Bibby Financial Services, says: “In
today’s busy workplace owners and managers can become so bogged down with
day-to-day activities, that long-term plans and best business practices are
swept into the corners and forgotten.”
Bibby Financial Services has developed the following checklist to help
companies get themselves in ship-shape condition for a successful 2007 and
beyond.
1. Review the clutter
Pull out your paperwork, look over invoices, bank statements, and
receipts—and don’t panic if you find yourself confronted with a mountain of
paper. Unnecessary and untended paperwork will slow your business down in
the long run, so knowing where you stand is half the battle.
2. Divide and conquer
Separate paperwork into manageable piles. Throw out what you no longer
need, catch up with your invoicing, meticulously work through files until
you have a clean slate and clear view of your book-keeping. Time spent
organising now is time saved later.
3. Get your business plan out of storage
With your day to day administrative work organised, you now have the
opportunity to look at your long term plan. Revisit your business plan and
review. Is there anything that can be improved? Have you followed your
budget? If not how can you get back on track?
4. Be efficient
By taking a few moments to record all your ongoing projects it will be
easier to raise an accurate invoice and will save you time in the long run.
Always ask your customer for a purchase order number and quote it on your
invoice. Raise the invoice immediately after the job has finished and be
very clear about your payment terms.
5. Reassess your suppliers
When was the last time you negotiated prices with your suppliers? Many
companies get familiar with suppliers and forget to push them for bulk or
loyalty discounts. Think what effect a five or ten per cent reduction in
costs could have on your profits. Take another look at the market
place and discover what new suppliers are charging to see if you are
getting a fair price.
6. Sort out your cash flow
Is your business funding slowing down your firm’s growth plans? If so,
consider more innovative funding solutions. A bank overdraft that is
repayable on demand may destroy any momentum you have built up heading into
the new financial year. Consider invoice finance; it frees up your cash
flow by releasing up to 85 per cent of the value of your outstanding
invoices as soon as you raise them. The invoice financier then chases
payment for you – freeing up your time.
7. Put your accountant on speed dial
An accountant can help you get your systems in order; some will also give
business advice. Plus, they provide a range of tax services. If you don’t
yet have an accountant - start looking! If you are worried about fee
levels, make sure you get quotes before appointing your chosen firm or
individual.
8. Sort out your tax return - before the deadline!
With an accountant and a newly organised office, completing your tax return
should be a stress-free endeavour. Rather than waiting until the deadline,
complete your return as soon as possible. To complete your
return, provide your accountant with records of your financial transactions
from the previous year.
David Robertson says: "Managing a small business can be a daunting
task. Many simply don’t have the resource to deal with the mountain of
day-to-day administrative tasks. By taking the time out to organise your
office and investing in efficient solutions, you can minimise your future
administrative burden and refocus your efforts on business basics and long
term goals."
