If you’re a small business owner, July is the perfect time to take a step back and review your finances. A mid-year business finance check can help you identify problems early, improve your cash flow, and avoid any nasty surprises when tax deadlines come around.
Here are ten simple things to review before the second half of the year gets into full swing.
1. Make sure your bookkeeping is up to date
Keeping your records current means you’ll always know how your business is performing. It also makes preparing your accounts and tax returns much easier. Take away your financial record keeping pain.
2. Review your cash flow
Are customers paying on time? Are there any large bills coming up? Good cash flow is essential for every business, so now is a great time to check where your money is going.
3. Chase outstanding invoices
Late payments can have a huge impact on your business. Spend a few minutes reviewing your unpaid invoices and follow up any overdue accounts.
4. Check you’re claiming all your business expenses
Many business owners forget about smaller expenses that can add up over the year. Reviewing these now could reduce your tax bill. But don’t make the mistake of claiming for the wrong things.
5. Separate business and personal finances
If you’re still using your personal account for business transactions, it may be time to consider opening a dedicated business account. We can help you decide which account is best for your business needs.
6. Prepare for Making Tax Digital
Making Tax Digital is changing the way many businesses keep their records and submit tax information. Even if it doesn’t apply to you just yet, getting organised now will make life much easier later.
7. Review your pricing
Have your supplier costs increased this year? If so, it may be worth reviewing your prices to make sure your business remains profitable. It is good practice to review your prices annually. Consider building this into your contract.
8. Make the most of technology
Modern bookkeeping software and AI tools can reduce admin, improve accuracy and save valuable time.
9. Put money aside for tax
Setting aside a percentage of your income each month can prevent unnecessary stress when your tax bill arrives.
10. Set financial goals for the rest of the year
Whether you want to improve cash flow, increase profit or simply spend less time on paperwork, having clear financial goals will help keep your business on track.
A quick review now can save you time and money later
A mid-year bookkeeping review doesn’t have to take hours, but it can make a big difference. By checking your finances now, you’ll be in a much stronger position for the months ahead and avoid a last-minute rush when tax deadlines approach.
If you’re unsure where to start, or you’d like someone to review your bookkeeping with you, Lucie and the team at LEO Bookkeeping are always happy to help.
Share this post: