Accounting Dates: Why you need to choose carefully?
The world operates in a complex web of time and dates, and in the business world, fiscal years are extremely essential. This is irrespective of ownership, be it a government or private entity. Although you’ll likely be worrying about your accounting and financial statements at the end of the year, starting as early as now allows you ample time to prepare.
You’ll need to be as thorough as possible, especially since fiscal years are paramount to the discussion of your company’s budget, as well as the current financial standing. While most firms set the accounting dates on the final month of the year, most firms choose to do so within the year.
In doing so, they’re able to properly oversee short and long term goals, ensuring that growth and development are always met. From everything gathered, it’s only logical to deduce that choosing your accounting date is vital—and should never be taken lightly.
To fully grasp its weight and significance to your company, we’ve gathered all the reasons you need to choose carefully:
Reason #1: You need to confirm the availability of an accounting firm
Accounting firms aren’t always available for the whole year at the same, and choosing your fiscal year wisely entails considering the fiscal year of your outsourced accounting firms. You need to consider if you’ll have the same year-end dates with the accounting firm, and you’ll have to discuss the schedules and deliverables that are needed to ensure hassle-free transactions. Close examination before making decisions like these is always necessary to avoid conflict.
Reason #2: You need to be aware of your business cycle
In any industry, an awareness of your business cycle is crucial in handling various aspects of your business such as your inventory. Your business may be busier in some months and more relaxed in others, and if you’re unaware of your business cycle, then you risk your business not running as efficiently as possible. Therefore, it is highly recommended that you select a year-end date when your business isn’t too busy to avoid any headache that may arise due to an unwise decision on your accounting dates.
Reason #3: The industry you’re operating in affects your future
The fiscal year is composed of various decision-making processes, all of which require stakeholders to participate in. This is particularly crucial at the end of the fiscal year, where the entire firm’s financial status is examined and scrutinised. More than just self-assessment tax processes, this is a time where your future is studied. You’ll likely be needing changes, as well as budget allocations that need to be studied and approved.
More importantly, it’s a decision that should remain firm throughout the business’s existence. As you choose your accounting dates, ensure that no other business relations are affected. It’s about taking your business in the long-term—the future is always at hand.
The Bottomline: Getting Your Personal Tax Affairs Right
Running a business is never easy, especially when it comes to finances. The next time the fiscal year comes up, make sure to sit down and decide on the year-end obligations. Consider all the factors discussed above, and work your way through there. Take every opportunity to learn and grow, but more importantly, make sure to get all your financial affairs straightened out on your calendar.
If you’re still typing “accountancy services near me” on your search bars, it’s time to end the process. 1to1 Accountants has you covered, as we are a premier accounting firm in the UK, serving small businesses, freelancers, limited companies, and so many more. Allow us to invest in your financial needs, so you can focus on what you do best. Schedule a free consultation today.