While it is incredibly tempting to wind down in the days leading up to Christmas and take it easy between Christmas and the New Year celebrations, it really is the perfect time to ensure that your accounts are in tip top shape.
You may have been putting off some tasks or you may simply have not had the time to tackle them, but using a day or two now to prepare for the year ahead will make a huge difference when you return to the office in January.
Here are 8 accountancy tasks to tackle now that will help you to prepare for 2025.
Bookkeeping and accountancy tasks that you should tackle now
Reconciliations and credit control
The end of the calendar year is a natural milestone – even if your accounting financial year is different – so it’s a great time to reconcile payments to invoices (if this doesn’t happen automatically by your accountancy software). It’s also a great time to chase any outstanding debts.
Sort through your receipts
Have you claimed for all of your expenses this calendar year? Do you have all of your receipts captured in one place either online via accounting software or physically filed? The end of the year really is the best time to ensure that your expenses are up-to-date and nothing is outstanding.
A New Year gift for your team
Boost team morale with a tax deduction gift for your staff. Cash gifts and vouchers are not tax deductible, but HMRC has conceded that seasonal gifts such as a turkey, a box of chocolates or a bottle of wine are exempt as long as they meet the criteria for trivial benefits. Alternatively, you could grant an extra day’s leave. If you didn’t do anything for Christmas, maybe a new year gift would be appreciated so plan ahead now. Read our recent blog about gifts at Christmas for more details.
Autumn budget changes to tax
You may have listened to the Autumn budget but have you had time to analyse the impact on you and your business? Now is the time to review the changes and consider how you can mitigate them. The latest budget announced changes to Capital Gains Tax, National Insurance, Inheritance tax and car allowances, so there is a lot to consider. If you are unsure of the impact on your business, feel free to give the HB team a call but please bear in mind that we may be out of the office over Christmas too!
Are you claiming for remote working?
Were you aware that you can claim for when you work from home – and so can your employees? As we reach the end of the year, take time to ensure that you are claiming for what you are entitled to, including wifi and power. You may wish to check your employees rights too. Visit the HMRC website to discover what may and may not be claimed.
Admin task – Add tax and regulatory deadlines to your calendar
Plan ahead by putting tax and regulatory deadlines into your calendar AND add an entry a few weeks before to remind you that a deadline is imminent. This is planning ahead that will inevitably support you to meet all deadlines – and in turn, avoid penalties and fees.
VAT – are you paying VAT the most efficient way?
If your VAT turnover is £150,000 or less you may wish to review the VAT Flat Rate Scheme that has been designed for businesses like you. Being on the VAT flat rate scheme means you pay a flat rate percentage, which could save you a lot of money. If you’re unsure, contact the HB team for more advice.
Review how your pay your directors
By paying a combination of dividends and salary, you may be able to reduce the tax burden on yourself and your business but it is important to review how much and the method you use to pay yourself, especially as budget announcements may have impacted these methods. It’s a great time to review how you pay your directors as there are still a few months before the end of the tax year in April. Again, if you need any advice, feel free to contact the HB team.
How can we help?
The HB team is always available to support your accountancy needs and discuss ways to boost your productivity, efficiency and profitability.
If you would like to learn more about the services that we offer, discover how we can give you real confidence in the future of your business, or if you are a larger business that requires auditing, then contact us today. We’re accountants for business and for individuals, and we are here to help you grow efficiently.
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any error.
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