As we head into the final quarter of the year, it can be tempting to focus on getting through the next few months and leave the financial planning until January.
But October, November and December can be a valuable opportunity to take stock of your business, understand where you are financially and make informed decisions before the year comes to an end.
Take a look at your numbers
Start by reviewing your management accounts, cash flow and year-to-date performance. Are you where you expected to be? Have your sales increased or fallen? Are your costs higher than anticipated? Looking at the figures now gives you time to understand what is happening and, importantly, do something about it. If cash flow is tighter than expected, for example, you still have time to review your spending, chase outstanding invoices or adjust your plans for the final few months.
Think about your tax position
Nobody wants a surprise tax bill. Reviewing your likely tax position at this point in the year can help you understand what you may owe and whether there are legitimate steps you could take to manage your tax liability. This might include considering planned purchases, pension contributions or other tax-efficient options, depending on your circumstances. The important thing is to plan rather than make rushed decisions in the first quarter of next year simply to reduce your tax bill.
Check your business goals
The final quarter is also a good time to ask whether your business is still heading in the direction you want it to. Perhaps you’ve achieved more than expected and are considering investing in growth. Perhaps your circumstances have changed and your original plans no longer make sense. Or perhaps you’ve simply been too busy running the business to think beyond the next deadline. A financial review can help turn those thoughts into practical plans for the year ahead.
Don’t wait until January
January is often associated with accounts, tax returns and financial admin, but you don’t have to wait until then to start preparing. Use the final quarter to get your records in order, review your performance, consider your tax position and start thinking about your priorities for next year. A little preparation now can make the start of the new year considerably less stressful, and give you a much clearer picture of where your business is going.
If you’d like help reviewing your business finances before the year ends, get in touch with E R Grove & Co. We’re here to help you understand your numbers and plan with confidence.
