Clearview National April 2015 - Issue 161 | Page 89

BUSINESSNEWS

Bucking
bad habits
“Financial planning shouldn’t
be reserved for year-end,”
says Bivek Sharma, Head of
Small Business Accounting
at KPMG Enterprise.
»»Financial year-end
is one of the most important
points in a business’ financial
calendar – providing a key
opportunity to re-evaluate
overheads, costs, turnover and
profit, in line with industry
economics and performance
rates. But this shouldn’t be
reserved to big blue-chip
companies, it’s also essential that
smaller businesses in the trade
are in the know when it comes
to their finances, not least at
year-end, when a business owner
has the opportunity to evaluate
performance and plan for the
year ahead.
No matter how large or small
your company, or what sector
you’re operating in, looking
ahead to the new financial year
with a clear, fresh and up to
date plan will help to keep your
business on track and heading
for success. Financial strategy

needs to form an overarching
framework in any business and is
necessary to guide key decisions.
With a clear strategic plan in
place from the offset, businesses
can set about executing plans
safe in the knowledge that

use allowances effectively so that
you do not incur charges. It is
also useful to make notes of tax
deadlines to make sure that you
are ahead of the game and will
not face penalties – really, the
key is to ensure you’re aware of

‘a clear, fresh and up to date plan
will help to keep your business on
track and heading for success’
outgoings and turnover are
100% accounted for. So, what
can those in the trade do to
ensure they’re on track with
their financial schedule ahead of
year-end?
The first touch point is tax
and allowances, which usually
end with the financial year. As a
small business, it’s important to

the financial schedule; meaning
you’re always in the know when
it comes to upcoming outgoings,
taxes and charges.
It is also essential to
continuously re-evaluate any plan
that is in place. Falling into the
trap of making a big elaborate
strategy, but not checking one,
two or even three months down

the line is all too easy; you need
to ensure that your predicted
turnover and profit is on track.
Reviewing your set targets
each month will be much more
effective for your business and
will help you to monitor trends
and changeable economics,
ensuring your year-end results
don’t hold any nasty surprises.
Once you’ve got your head
around the figures, market
trends that impact on your
profitability month-on-month
can be accounted for, which will
allow you to reserve funds from
peak trading periods and help
with cash flow when demand
is quieter. Businesses can also
benefit from external help and it
needn’t be costly. An investment
into a resource that allows you
to monitor your finances in an
easy and accessible way could
mean the difference between
failure and success.

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