Organising your business finances for a new financial year (Guest Blog)
With the end of the financial year approaching on 31st March 2015, here's 10 great ways to get organised for the new financial year:
1. Review the cashflow of the business and consider whether funding arrangements will be sufficient. Look at the business’ financing arrangements and ensure they still represent good value and the running costs – interest, etc are reasonable. If the answer is no, consider refinancing.
2. Review your accounting systems and check the systems provide all the information you want to run the business. For example, your trade debtor schedules should be produced in such a way as to facililitate chasing delinquent customers.
3. Consider staff skills and whether any need updating, for example, taking account of any new software you plan on using. Bear in mind the performance of staff members, such as whether your Credit Controller’s has improved customer payment periods. If not consider training to improve performance.
4. Talk to your accountant about suggested improvements to your systems and discuss whether the audit has shown up any weaknesses which need to be addressed, particularly in the areas of preventing fraud or mis-reporting?
5. Discuss with your accountant new Financial Reporting Standards or other reporting requirements on the horizon and how they might affect your business information systems.
6. If your business is expanding into new markets or product sectors in the new financial year discuss with colleagues what will be the impact on the organisation – such as whether you will you need different finance arrangements, or will there be more overheads, new staff etc.
7. Review the performance ratios and management information used in the business. Ask whether the information helps you and the other management to control the business and drive performance to achieve your objectives.
8. Check the forecast tax liability for the current year and ask what the likely liability is for next year. Check with your accountant whether you are making full use of all the available losses, capital allowances on equipment, etc.
9. Review budgets and ask whether they are still realistic or are there different trading circumstances which require a revised forecast.
10. Review the company’s pensions arrangements as to whether they are still affordable or should you be looking to make changes. Talk to an adviser about ways to improve benefits or reduce the costs.
Author Bio: Clive Lewis FCA ACMA
Clive Lewis is a chartered accountant (FCA) and a chartered management accountant (ACMA). After qualifying in public practice he spent twenty years in financial controller/ director roles in various sized businesses mainly in the electronics sector. Prior to joining ICAEW in 1993, he was Finance Director of a quoted electronics PLC.
At the ICAEW (Institute of Chartered Accountants in England and Wales) he is Head of Enterprise. He has conducted a number of surveys on business issues including the annual ICAEW Enterprise Survey, now in its seventeenth year. He has represented the ICAEW at the British Bankers Association Business Finance Roundtable and has recently contributed to ICAEW responses to consultations on the Small Business, Enterprise and Employment Bill.
He writes regular articles for the media using the feedback from surveys, ICAEW members and his experience in business.
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