As we approach the end of the financial year, businesses will understand the significance of this period and the steps required to ensure a smooth transition. Tracy Richardson, the Head of Finance at Webexpenses, discusses the intricacies of financial year-end and her top tips for navigating financial year-end success. She also shares valuable insights on how expense management plays a pivotal role in this process.
- Understanding Financial Year-End
- Preparing for Financial Year-End
- Navigating Expense Management
- Perserverance and Adaptability
- Financial Year-End Success
Understanding Financial Year-End
“Financial year-end is more than just a date in the calendar”, explains Tracy “It marks the conclusion of the current fiscal year, where tax reporting and external audits of the previous year’s accounts take centre stage.” The fiscal year, synonymous with the financial year, doesn’t always align with the calendar year, highlighting the importance of clarity regarding dates and deadlines.
Preparing for Financial Year-End
The preparation for the financial year-end begins well in advance, with a strategic approach being paramount. “Engaging with external auditors and the tax team 3-4 months before year-end sets the foundation”, emphasises our Head of Finance. “Creating a timetable of deliverables, coordinating with internal resources, and alerting staff about the impending deadlines are critical steps”.
Additionally, early engagement with external experts for valuations and constant communication with stakeholders is essential to the preparation process.
Navigating Expense Management
Whilst the financial year-end includes various aspects, expense management also holds significant weight. “Completeness and accuracy are key”, states Tracy. “Ensuring all open expense claims are approved and booked in time is imperative”.
Mileage claims are also important to think about. It’s essential to keep your financial year information up to date, especially for those close to the threshold amount on mileage for it to correctly work throughout the year. HMRC recommends that employees using their vehicle for business can claim up to 10,000 miles per financial year at 45p per mile. After they hit the 10,000 mile threshold, it will reduce to 25p per mile for the rest of the financial year. As the financial year starts, that resets.
Using Webexpenses, as a paperless system, “seamlessly facilitate expense submissions and approvals, including mileage claims, ensuring a clear audit trail highlights our Head of Finance.
Perserverance and Adaptability
Inevitability, challenges may arise, but perseverance coupled with navigating effective strategies can mitigate setbacks. “Communication is paramount”, says Tracy. “Setting realistic expectations and devising re-work plans can salvage situations where deadlines seem overwhelming.”
In instances where businesses fall behind, proactive measures such as interim resources or system enhancements can accelerate the reporting process.
Financial Year-End Success
Looking back on the financial year, businesses must analyse trends and identify areas for improvement. “Did we stick to the plan? What adjustments can be made to enhance efficiency?” prompts our Head of Finance.
For new businesses embarking on this journey, the importance of an expenses policy cannot be overstated. “A robust system like Webexpenses ensures compliance and efficiency,” recommends Tracy. “It streamlines the expense management process, safeguarding against late claims and inaccuracies.”
As we navigate the complexities of financial year-end, diligent planning, effective communication and leveraging innovative solutions like Webexpenses remain indispensable. Businesses can navigate this period with confidence, ensuring compliance and setting the stage for future success. See how Webexpenses can help streamline your expense management and keep your business on track. Book a free demo today and experience the difference for yourself!
