5 Ways To Spring Clean Your Finances
As we step into Spring, it's the perfect time for renewal. While spring cleaning your home often steals the seasonal spotlight, it’s also an ideal moment to refresh your business and personal finances.
The new tax year is right around the corner and while I'm pretty sure accountants are the only ones popping champagne on 6 April (!), it’s a great opportunity to give your finances a freshen-up.
Let's dive into 5 simple, practical steps to give your finances a fresh start and set yourself up for a season of clarity and confidence.
🌸 1. De-clutter your costs
Pull your last few business bank statements and identify any non-essential costs. Can they be eliminated or reduced?
Tech stacks and subscriptions can quickly pile up, and memberships can easily go unused. Cutting back on these can free up funds to use more intentionally elsewhere.
🌸 2. Give your savings a fresh start
Whether you're saving for a house deposit, planning to expand your family, or dreaming of a bucket list holiday, setting clear and achievable savings goals is a great way to stay focused. If you've fallen off track, it's never too late to start again!
A well-rounded savings strategy often includes a balance of personal and business savings. With the end of the tax year approaching, you can also consider maximising your ISA allowances to boost your savings.
🌸 3. Plant the seeds for Future You
It’s never too early to start planning for a comfortable retirement.
Review your latest pension statement and contribution levels to see if you’re on track. If unsure, speak with a financial advisor for specific advice.
As a limited company owner, employer pension contributions through your business can help build your retirement savings and also bring tax advantages by reducing your company’s tax bill.
🌸 4. Organise and categorise your paperwork for your self-assessment
Start rounding up all the documents you'll need for your personal tax return - bank statements, interest certificates, gift aid donations, dividend vouchers etc.
This means that you (or your accountant) are ready to file your self-assessment straight after the tax year ends. Filing early means no more last minute panic - you'll know how much tax is due well ahead of the payment deadline next January.
🌸 5. Polish Up Your Tax Strategy
Take advantage of any allowances and reliefs for the remaining tax year so that you can reduce your tax liability and keep more of your hard-earned money.
Planning your income strategically can also help you fully utilise lower tax bands. A good accountant can help you optimise this.
Why not have a read of our helpful blog covering all the changes you need to know about as a business owner for the upcoming tax year announced in the Autumn Budget.
And that's it — your spring financial refresh is all set!
Take a breath, enjoy a cup of tea and start with small steps to get things moving.
If you need a bit of guidance along the way, get in touch with us - we’d be happy to have a chat to explore how we can support you to feel calm and confident about your business finances.
