Taking the End of the Financial Year from Stress to Financial Success
As we approach the end of the financial year, Webexpenses explores how businesses can transform the typical stress of the financial year end into financial success. This article delves into the common challenges faced at the close of the financial year and suggests strategies for overcoming them. Ultimately, most businesses experience similar concerns as the year-end draws near.
Whilst every business is different, deadlines and regulations remain for everyone. Tax compliance and financial reporting are required of every business. Cashflow and payment management must be monitored throughout the financial year and accurately reported on. Budgeting and forecasting for the new year must be informed by accurate accounts. Then there are other challenges such as employee related considerations and inventory and operational closures.
Common End of Year Financial Stresses
Having supported over 2,000 finance teams, Webexpenses has identified several common year-end stresses. While there are some variations depending on industry-specific regulations or the size of the company, many challenges are shared.
For instance, Webexpenses’ financial year end is on 31st March, and we navigate the challenges outlined below in an automated, efficient approach. Our goal is to achieve the same financial success as our clients, and to meet these challenges, Webexpenses relies on its expense management and accounting software to improve accuracy, eliminate duplication and provide valuable insights for the upcoming year.
Every business must also consider how to prevent financial year end stress in business. A common thread is that very few look forward to this time of year. However, the good news is that there are straightforward methods for minimising headaches at the close of the financial year.
In this section, Webexpenses highlights the most frequently encountered stresses and offers actionable financial year end tips for success.
Tax Compliance and Financial Reporting
The consequences of failing to comply with tax regulations and producing inaccurate financial reports can be substantial. Accuracy in this area is non-negotiable. Furthermore, there are penalties for late tax return filings, making timeliness a critical factor. All businesses are required to adhere to tax rules and submit precise financial statements.
Cashflow and Payment Management
Whilst cashflow is an ongoing concern throughout the financial year, managing incoming and outgoing payments is vital in ensuring liquidity, accurate payments and financial success at year end. Payment management is something Webexpenses supports customers with ensuring reliable, efficient and pain-free expense management as part of maintaining accurate and timely payments throughout the year.
Budgeting and Forecasting for the New Year
In addition to closing the current financial year, it is vital for businesses to prepare for budgeting and forecasting the next financial year. Reliable financial reports are essential for accurate budgeting and forecasting. Transparent records also offer the opportunity to scrutinise revenue and expenses, enabling businesses to make data-driven decisions for the year ahead.
Employee Related Challenges
Employee-related challenges vary, but when it comes to year-end, the involvement of the entire workforce is essential. Webexpenses understands that the finance team needs to be informed about internal processes and their responsibilities, while the wider workforce must be kept up to date on reporting expectations and deadlines.
Inventory and Operational Closures
This area exhibits the greatest variation among businesses. Understanding inventory levels and conducting year-end audits is crucial for accurate financial reporting. Other tasks, such as closing temporary accounts and transferring balances into permanent accounts, provide clarity on the company’s financial position.
How to Prevent Financial Year End Stress in Business
Having discussed some of the common challenges businesses face at the end of the financial year, it is now time to focus on the solutions. While there is no universal solution to the complexities of year-end, several strategies are widely applicable to businesses of all sizes.
Preparation, planning and staying ahead of the curve are key to reducing stress and increasing the likelihood of financial success. While circumstances may change, adopting these best practices will significantly ease the financial year-end process.
Here are Webexpenses' top five tips for a smooth financial year-end:
1. Planning and Preparation
A proactive approach to the financial year end should be maintained throughout the year. Establishing clear deadlines, consistent record-keeping and regularly monitoring financials ensures the process is as smooth and accurate as possible. By staying organised, businesses can avoid last-minute panic and streamline the preparation of year-end documents.
2. Leveraging Technology and Automation
The days of manually trawling through paper records and spreadsheets are over. Well, at least they should be. The tools exist to conduct automated audits of aspects of your accounting such as expenses. These help you to bring all of your financial information together in a central location. You can then easily access and report on your data, safe in the knowledge that it has been accurately maintained and recorded throughout the financial year.
3. Delegation and Collaboration
Getting everyone involved and making them aware of their responsibilities is key. Where people need to take responsibility for their own areas of operation, from sales figures to submitting expense reports, you place the onus on them to ensure everything is accurately recorded and submitted in order that they will receive the correct remittance. With everyone aware of their responsibilities and pulling in the same direction, it makes the task of getting everything together on time much easier.
4. Maintaining Employee Wellbeing
Reducing the burden on the finance team by involving all employees in the process helps alleviate stress. Overloading staff with unrealistic timelines and excessive workloads increases the likelihood of errors. Ensuring that the team is adequately supported, and managing workloads in a healthy way, is essential for reducing stress and achieving successful year-end results.
5. Ensure Continuous Compliance
Compliance should not be confined to the financial year-end. It is crucial to remain vigilant about regulatory obligations, tax responsibilities and internal policies throughout the year. By adhering to these consistently, businesses will avoid the last-minute scramble often associated with year-end compliance.
Find out how Webexpenses can Support your Business Financials
Webexpenses can support you in removing stress from your end of financial year. With automation at the heart of our solutions, we can support you in tracking your business expenses 24/7, 365 days a year. Start reducing the stress of your financial year-end today by booking a free demo.