Let’s Get Ready for the New Financial Year

The end of the financial year is upon us – and if you’re self-employed, you probably know what that means. Time to gather your records, tally up your income, and get that self-assessment done and dusted. Sure, it’s not the most glamorous task on your to-do list, but staying ahead of the game can save you a lot of stress later on.

In this blog, we’ll talk about how to wrap up this financial year efficiently and set yourself up for smoother bookkeeping in the next one. With a bit of preparation and good habits, you’ll be cruising through tax season like a pro.

Step 1: Wrapping Up This Financial Year

Before you can start fresh, it’s important to make sure your records for the current financial year are in order. Here’s what you’ll want to focus on:

Gather Your Financial Records

Start by collecting everything you’ll need for your self-assessment tax return, including:

• Invoices – Make sure you have records of all the income you’ve earned.

• Receipts for Expenses – Keep receipts for any business-related costs you’re claiming, from office supplies to travel expenses.

• Bank Statements – These can help you double-check your records and ensure nothing’s been missed.

If you’ve been keeping your records organised throughout the year, this part should be a breeze. If not… well, now’s the time to get everything together!

File Your Self-Assessment Early

We know the official self-assessment deadline is 31st January, but why wait that long? There are some real benefits to filing your return early, including:

• Peace of Mind – No more looming deadlines or last-minute panic.

• Faster Tax Refunds – If HMRC owes you money, you’ll get your refund sooner by filing early.

• Time to Plan – Filing early means you’ll know exactly how much tax you owe, giving you more time to budget and prepare.

It’s tempting to put it off, but trust us – your future self will thank you for getting it done sooner rather than later.

Step 2: Looking Ahead to the New Financial Year

Once you’ve wrapped up the current financial year, it’s time to turn your attention to the future. Setting up efficient bookkeeping habits now can make your life much easier when it’s time to file your next tax return. Here are some tips to get you started:

Track Your Income and Expenses Regularly

Rather than waiting until the end of the year to sort through a mountain of paperwork, make it a habit to update your records regularly. Whether it’s once a week or once a month, keeping on top of things will save you a lot of hassle later on.

Set Aside Money for Tax

One of the biggest challenges for self-employed individuals is making sure you have enough money set aside to cover your tax bill. A good rule of thumb is to set aside a percentage of each payment you receive – that way, you won’t get caught out when it’s time to pay up.

Stay Organised

Keeping your records tidy doesn’t have to be complicated. Whether you prefer digital tools, spreadsheets, or good old-fashioned paper files, find a system that works for you and stick to it. The key is to stay consistent – a little effort now can save you hours of sorting and searching later on.

Consider Using Bookkeeping Software

If you’re looking to streamline things even further, you might want to explore bookkeeping software options. These tools can help you track income, manage expenses, and even generate reports – making it easier to stay on top of your finances throughout the year.

Final Thoughts

Getting ready for the new financial year doesn’t have to be overwhelming. By taking a bit of time to organise your records, file your self-assessment early, and set up efficient bookkeeping habits, you’ll be well on your way to a smoother, less stressful tax season.

Remember, the goal is progress, not perfection. Small steps can make a big difference – and by staying organised, you’ll be setting yourself up for success in the year ahead.

Happy bookkeeping, and here’s to a great new financial year!