Review Your Business Finances Before the Tax Year Ends

As we approach the end of another tax year (5 April), it’s the perfect moment for business owners to take a step back and review their finances. Whether you’re a sole trader, limited company, or somewhere in between, a little proactive planning now can make a big difference later.

Here’s why reviewing your numbers before the new tax year isn’t just smart – it’s essential.

1. Spot Tax-Saving Opportunities (While There’s Still Time)

Once the new tax year begins, certain allowances and reliefs are gone for good – so now’s the time to act.

Depending on your business structure, there may still be time to:

Use up your annual investment allowance by purchasing equipment or tools.
Make pension contributions (personal or employer) that reduce your taxable income.
Pay a director’s bonus before 5 April to lower company profits (if appropriate).
Claim allowable expenses you might have missed earlier in the year.

If you’re not sure what you are eligible for, don’t worry – that’s what we’re here for. A quick year-end review can identify any last-minute actions that could reduce your tax liability.

2. Get a Clear Picture of Your Business Health

Year-end isn’t just about ticking boxes – it’s an opportunity to reflect on how your business has performed and where you want it to go.

Ask yourself:

Did you meet your financial targets or budgets?
What were your most profitable products or services?
Were there any unexpected costs or cash flow issues?

This kind of analysis can help you spot patterns – good and bad – and give you solid data to guide your decisions in the new tax year. It’s also a great time to check whether your current systems and tools are still working for you.

3. Avoid a Last-Minute Rush

Let’s be honest – no one enjoys scrambling to get their records in order at the last minute. A little preparation now can save a lot of stress later.

Use this time to:

Reconcile your bank accounts and accounting software.
Make sure your bookkeeping is up to date.
Chase unpaid invoices and review your debtors list.
Gather any receipts or paperwork for outstanding expenses.

This helps ensure your accounts are accurate – and avoids surprises when it’s time to file.

4. Set Yourself Up for a Stronger 2025/26

Reviewing your finances now doesn’t just help you finish the year well – it gives you clarify for the year ahead.

With a clean, up-to-date financial picture, you can:

Set realistic revenue and profit goals.
Plan for investments, new hires or expansion.
Build a budget and cash flow forecast for the new year.

It’s also a great time to review your pricing, assess your current accountant or software, and make sure everything is still serving your goals.

Let’s Make Year-End Less Stressful

At Crossley & Davis, we work with business owners in the UK to help them stay ahead – not just compliant. Whether you need a quick check-in, a full review, or just someone to talk things through with, we’re here to help.

If you’re looking for practical advice with a friendly, no-nonsense approach, feel free to get in touch. Let’s make this year-end your smoothest yet.