30 Mar Why can’t I leave doing my company accounts to the last minute?
Running a business means always having ten different plates spinning at once. You decide, every day, where your limited time is most valuably spent, but this can cause some tasks to fall through the cracks. Often, one of these tasks is preparing your company accounts.
We recently helped two new customers file their accounts just before the deadline. While we successfully filed on time, these clients missed out on the huge value getting your accounts done early brings. We recommend doing your company accounts as soon after your company year-end as possible so you:
Know how your business is performing
The primary value in getting your accounts done early is getting a clear understanding of how your business is doing as soon as possible. It sounds simple but, quite often, the annual set of funds is the only time you as a business owner get to know how you’re performing. If you’re only getting your hands on these numbers nine months after your year-end, that can be too late.
We recommend completing your accounts as close to your company year-end as possible, preferably within three months. This can help you see where you’re losing or making money, understand the state of the industry overall and make impactful decisions to drive future success.
Save time and prevent mistakes
Time is your most valuable and finite resource as a business owner. That’s why you don’t want to waste it scrambling around for receipts and invoices, trying to remember everything that happened all those months ago with a deadline looming nearer and nearer.
Playing catch-up doesn’t just take extra time; it can also lead to errors in your tax return. Mistakes happen when you rush things. You might miss an important entry and end up paying more tax than you need to. You can be confident you’re keeping as much of your hard earned money as possible if you prepare your accounts well before the deadline.
Avoid surprise tax bills
Everyone loves surprises, except when that surprise is a big tax bill!
If you know your tax bill ahead of time, you can start putting money aside to save for it instead of scrambling around at the last minute trying to find the cash you need. Imagine going into tax season feeling completely in control instead of biting your nails over what’s to come!
Target dates make a difference to your business
At J2, we work to target dates rather than deadlines. For example, we have target dates of three months from companies’ year-end to get their company accounts done. We know sometimes daily business gets in the way, and making it happen can be challenging, but setting a target date means you can get closer to your numbers and we can bring even more value to your business. And just imagine the relief you’ll feel when that deadline hits and you know everything’s been handled already.
Don’t leave your accounts until the last minute; get in touch to get your target date locked in.