1. Create or review your cashflow forecast
A cashflow forecast
is one of the most useful financial tools for business owners. It shows you how much money you have coming into your business and how much is going out.
The forecast will help you understand if your business has capacity for growth, or if you need to take action to plug any cashflow gaps. It is also useful when seeking funding from a bank, alternative lender or investor.
If you already have one, review it and make sure it’s accurate and up-to-date. An accountant can help with your cashflow projections.
Download our FREE Cashflow Forecast Template here
2. Review your business plan
The challenges of the current cost of living crisis could mean you need to make additional adjustments such as reducing costs or making plans to sell your products or services in new markets to make up for reduced sales elsewhere.
Consider everything in your business plan such as cashflow and sales forecasts, business operations and marketing strategies.
Check that your plan is accurate and up-to-date. Go through your goals and key performance indicators to decide whether they are still realistic. While you might need to reduce some targets, there could be new business opportunities you’ve spotted that you can add to your plan.
3. Apply for the Temporary Business Energy Support Scheme (TBESS)
The Temporary Business Energy Support Scheme (TBESS) was announced in Budget 2023 to help businesses mitigate the impact of rising energy costs. To reduce red tape, and increase the attractiveness of this scheme, the Government recently announced some changes.
If your business is experiencing a 30% or above increase in the gas and electricity average unit price, when compared to the same period last year, you may be able to apply for the scheme. Originally business needed to show a 50% increase in bills year-on-year so the new figure of 30% means more business can apply. If you didn’t qualify for the scheme originally you may qualify now.
The scheme will pay eligible businesses up to 50% of the increased cost of electricity or gas bills.
Read more about the TBESS here
4. Do your tax return now
Leaving it late can lead to errors and you missing out on tax reliefs you’re entitled to. It also boosts your cashflow planning and means you’ll avoid penalties for filing your tax return late
. If you do have a high tax bill it will give you time to plan how you will pay.
Remember even if you file now you do not need to pay until October.
5. Reduce your tax bill
There are various tax planning actions you can take to make savings including employing your spouse in the business, getting research and development tax credits and claiming household expenses if you run your business from home.
Tax legislation is complicated and it’s easy to make mistakes. If you run a business a professional accountant can advise on what you are legally entitled to.
6. Automate your accounting
If you haven’t yet embraced digital technology
when it comes to managing your accounts maybe now is the time to do it.
Using digital tools helps boost your productivity and slash the amount of time you waste on admin tasks by letting you stay on top of your business finances from wherever you are and from any device.
To help businesses benefit from digital tools, TaxAssist Accountants have partnered with the accounting software company Surf Accounts
and the expense management tool Dext
7. Consider switching your accountant
Many businesses are perfectly happy with their accountant. However, there are others who feel let down by the service they receive. If your accountant is difficult to contact, lack the knowledge and expertise to complete the work needed, uses out-of-date systems, or if your business has outgrown a small accountancy practice now may be a good time to switch.
The good news is that switching accountant is easy and usually does not take up too much time. Most of the work is done by the two accountants.
Read more about switching accountants here
Book your FREE Initial Consultation with us today
Date published 9 Feb 2023 | Last updated 1 Mar 2023
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.