With January marking the start of a new calendar year, it’s the perfect time to review your financial progress and prepare for key dates such as the Self-Assessment Tax Return deadline (31st of January 2025) and the start of the new fiscal year (6th of April 2025).
If you’re not already working with an accountant (or Chartered Accountant), you may be missing out on valuable business insights, legislation changes, tax relief opportunities, and more. While it’s not a legal requirement to work with an accountant, it’s highly recommended for the expertise and peace of mind we can offer, ensuring your accounts will be submitted accurately and on time (reducing the risk of fines or penalties).
However, we also understand that many people are happy to search for answers to their queries online, so we have provided several guides for free via our website to support business owners, freelancers, and other self-employed individuals. Our guides are written with our clients in mind and aim to answer the most common questions we get, however, it’s never an exhaustive list and you can always reach out for further advice and a consultation tailored to your specific business needs.
Some of our recent guides include:
- How To File (And Pay) Your Self Assessment Tax Return
- What The Scottish Budget 2025-26 Announcement Means For Businesses
- How to Leak-Proof Your Finances: Find & Fix Hidden Money Drains
- Tax Planning FAQs
- Financial Reviews: What To Discuss With A Chartered Accountant
- 12 Ways An Accountant Can Help Your Business Grow
Top Questions To Ask Your Accountant Ahead Of The New Fiscal Year
To assist with your business planning and help you better understand your financial figures, we’ve outlined some key questions to ask your accountant. These questions are designed to provide valuable insights that go beyond high-level metrics (such as total income and expenses) and instead delve into the strategies for success over the next 12 months and beyond.
Is My Cash Flow Healthy?
One of the key things to identify right away is whether your business has a healthy cash flow, i.e. how easily does your business cover its expenses without relying on additional funding. This can help you plan for seasonal fluctuations and unexpected expenses, as well as enable you to see your business through the eyes of potential investors or banks – a healthy cash flow can make it easier to secure funding as your business will be low risk.
How Can I Grow My Business?
Many people don’t think to ask their accountant this question, but actually, accountants are some of the best-equipped individuals to support your business plans! Accountants will often be aware of industry changes as they will work with a wide range of clients and can advise on areas such as operations (ensuring you are not paying too much for common services such as payment processing), creating forecasts (and spotting emerging market trends), or even supporting your pricing strategies based on your expenses.
What Business Expenses Can I Deduct?
As your accountant will have full oversight of your finances, they will be able to not only identify which expenses fall into deductible categories but will also be able to reduce unnecessary overspending in areas such as utilities, equipment purchases, training costs, travel, and more.
How Should I Structure My Business?
While this may seem like an internal business, your business type and structure will also impact your tax obligations and personal liability which are all things an accountant can advise on! As such, it’s important to look into the protections offered by, for example, becoming a limited company versus remaining a sole trader. And keep in mind this will change over time depending on your income so it’s best to review every few years or if your circumstances change.
What Are My Tax Obligations?
Fully understanding your tax obligations will help you avoid penalties and ensure compliance with changes in regulations, e.g. Making Tax Digital (MTD) for businesses and self-employed individuals. Alongside this, it’s good to be aware of tax deadlines and ensure all your paperwork is in order ahead of time – something your accountant can handle on your behalf as long as your invoices and receipts are submitted! Your tax obligations may change over time, so reviewing this regularly is important.
What Records Should I Keep?
As a general rule of thumb, you must keep records of any monetary amount (no matter how small!) leaving or coming into your business! It’s also good to ensure you have sufficient records of changes in trading names or addresses to ensure your paperwork is in proper order and there are no discrepancies which might flag to auditors. Alongside this, you should check how long you need to keep specific records for and how to dispose of hard copies containing sensitive data. Depending on your trade, you may also need to maintain verified certificates and disclosures, so it’s also recommended these are stored safely and securely should they be requested.
How Can I Reduce My Tax Bill?
Tax efficiency strategies and general tax planning are legal practices that can save your business significant amounts of money. There will also be tax relief schemes available for you based on your trade, location, or years in business and these tax-saving opportunities can make a big difference to your bottom line. Speak to your accountant to learn more about your options and remain compliant with your local tax regulations.
Should I Register for VAT?
As of April 1st 2024, the VAT registration threshold has changed from £85,000 to £90,000, and the deregistration threshold has changed from £83,000 to £88,000 (see the Government website for more info). As such, anyone whose self-employment income is coming close to these figures (or anyone who wishes to become VAT-registered voluntarily) should speak with their accountant about the best time to register and the pros and cons of registering.
What Are My Accounting And Legal Fees?
Understanding which expenses fall into the category of accounting and legal fees can come with tax benefits as “legal and financial costs” is a category that you can claim expenses on for your Self-Assessment Tax Return (learn more on the Government website). Your insurance will also fall into this category, so while discussing this topic with your accountant, it’s also important to ensure you have the right level and type of cover for your business.
What Are My Financing Options?
Understanding the funding opportunities available to you can give you a head-start for the year and support your growth. Depending on your type of business, you may be eligible for better loan rates, Government or business grants, and other investment opportunities. Beyond providing financial support, your accountant will be able to help you expand your professional network or even refer you to partner businesses at a discounted rate.
What Other Services Do You Offer?
Accountancy firms rarely provide a single service so asking this question will help you learn more about the support available to you already through the retainer fee you pay, or the options that might be available to you in the future. For example, at MMG Chartered Accountants, we offer:
- Audit and assurance services
- Accounting and reporting services
- Tax compliance and advisory services
- Payroll services
- Virtual finance support
- Wealth management
Contact MMG Chartered Accountants
Take advantage of our wide range of business support options and grow your business into 2025 with MMG Chartered Accountants by contacting our team at mail@mmgca.co.uk or calling your local branch.