Business owners – year end planning tips

A few housekeeping tips for readers with business interests; especially those with an upcoming financial year end at the end of March 2021.

• Don’t forget to include any grants received to support COVID challenges in your accounts as income. These grants are taxable.
• If you have furloughed staff at any time during 2020-21, check to make sure you have your paperwork in good order:
  • Written agreements with all affected staff covering any changes to furlough arrangements.
  • Evidence to demonstrate that your business has been unduly affected by COVID disruption.
• Quantify the amount of any losses incurred during the past year and start thinking about steps to minimise financial challenges ahead and make best use of tax losses.
• Take a hard look at your cashflow forecasts as you approach your year-end and if cash resources are critical, consider how you are going to inject capital in the coming months to plug any shortfall.
• Before the end of your current trading year, and with the experience of managing the COVID challenges, prepare a budget for the next year.

Last, but not least, talk to us before the end of your financial year so we can discuss your options to make the most of any strategies to safeguard your business finances before the end of the trading year.