As the end of the financial year approaches, startups are bound to find themselves at a critical crossroads. It’s time to reflect on the past year, a time to gauge their fiscal well-being, and an opportunity to chart the course for the future.
In an exploration of this pivotal period, we delve into the pressing questions: What are the key considerations demanding attention from entrepreneurs? How can startups use this time to assess their potential and devise strategies for future success? To uncover insights, we asked the experts…
Our Experts:
- Brian Crane, Founder of CallerSmart
- Admir Rusidovic, Manchester PC Services LTD
- Paul Lodder, VP, Accounting Product Strategy at Dext
- Philip Brennan, Founder and MD at BusinessComparison
- John Readman, CEO and Founder of ASK BOSCO®
- Dan Shellard, Partner at Breega
For any questions, comments or features, please contact us directly.
Brian Crane, Founder of CallerSmart
“For startups, the upcoming end of the financial year is a time to analyse their business health, evaluate their budgets, compute taxes, comply with legal and regulatory requirements, calculate profits & losses, identify areas where they can improve, and set the financial plans and goals for the following fiscal year. It’s also the time to evaluate employee performances, distribute quarterly bonuses, cut away on unnecessary expenses, and settle any outstanding bills to partners, vendors, or contractors to ensure that the business stays financially healthy.
“By taking care of the financial records, startups can also identify any errors in the financial documents that may need correction and prepare financial statements in time. This allows businesses to identify any cash flow problems and by what rate new business sales have to increase, or if any loss-making areas can be trimmed to improve baseline profits. This is important because it boosts investor confidence when the startup wants to raise new capital for expansion.”
Admir Rusidovic, Manchester PC Services LTD
“For us at Manchester PC the year-end review is more than just numbers. It’s a strategic reset. We zoom out from weekly check-ins, gaining a panoramic view. Metrics like gross profit margin become a health check, revealing strategy effectiveness and guiding profit optimisation. Similarly, expenses compared to revenue show where we can tighten the belt.
“But it’s not just about the bottom line. It’s a time to hold decisions up to the light: did they steer us towards goals, or do we need to adjust course? Even challenges like the cost-of-living crisis become opportunities to learn and adapt.
“Armed with this year-end wisdom, we refine strategies for sustainable growth. This isn’t just a financial milestone; it’s a launchpad for innovation and resilience, propelling Manchester PC to even greater heights.”
Paul Lodder, VP, Accounting Product Strategy at Dext
“As the 2023/2024 tax year draws to a close, it’s imperative to undertake a thorough review of your finances (personal and business) to maximise tax efficiency. The end of the tax year marks a critical juncture for businesses to evaluate their strategies and make informed decisions that may significantly impact their bottom line and future tax liabilities.
“Collaborating closely with financial experts such as accountants or bookkeepers is paramount during this time. Accountants and bookkeepers offer invaluable insights into optimising tax liabilities through avenues like strategic pension contributions and remuneration planning. For self-employed individuals, staying abreast of basis period reforms is equally essential to ensure compliance and minimise tax burdens in the future.
“Moreover, effective decision-making hinges on the availability of accurate and current financial data. Integrating tools like Dext into daily operations streamlines the process, ensuring data integrity and completeness of records. By embracing technology and seeking expert advice, startups can navigate the complexities of tax efficiency with confidence, positioning themselves for sustainable growth and financial success.”
For any questions, comments or features, please contact us directly.
Philip Brennan, Founder and MD at BusinessComparison
“Any new tax regulations for businesses and individuals will be introduced on 6th April. The National Living Wage is set to increase to £11.44 an hour for individuals over the age of 21, so businesses should be aware of how this will affect their staffing costs. You’ll also need to update your payroll to reflect the new, lower National Insurance contributions employees will make in 2024/25.
“The VAT registration threshold is rising, so from April, startups making below £90,000 in taxable turnover will no longer have to register to pay VAT. If your business had to be registered under the old legislation, you may now be able to deregister. The threshold to deregister from the VAT scheme will also be going up. From 6th April, you can deregister if your sales subject to VAT are below £88,000, rather than the previous limit of £83,000.
“Some more good news for startups from the budget is that SEIS and EIS funding schemes have been extended, now running until 2035. These schemes encourage investors to support young companies, making it easier for founders to access capital for their startups.”
John Readman, CEO and Founder of ASK BOSCO®
“As we approach the end of the financial year and ahead of the general election, it’s a pivotal time for startups to reflect on strategies and capitalise on opportunities, especially potential changes to policies such as Entrepreneurs’ Relief, EOT and R&D tax relief rates.
“Smart tax planning is important for business owners to navigate the evolving landscape, with a focus on improving tax-efficient investing schemes like SEIS and EIS, while also considering initiatives aimed at levelling up regions.
“Startups need to review their financial performance, identifying areas of strength and opportunities for improvement, not only for end-of-year reports but also to adapt to potential policy shifts post-election.
“Reassessing business goals and adjusting roadmaps considering potential policy changes and the broader economic context is crucial.
“At ASK BOSCO®, we recognise the pivotal role that R&D and AI play in shaping the future of businesses. This period offers startups a prime opportunity to assess the outcomes of their AI and R&D endeavours and plans, evaluate the impact of their innovation, and plan for continued development in anticipation of potential policy shifts.”
Dan Shellard, Partner at Breega
“As the UK’s financial year draws to a close, startups find themselves in a landscape filled with fiscal responsibilities and opportunities. One key task is the submission of R&D tax credits, a vital part of the UK’s innovation ecosystem. This year, startups face additional challenges due to reduced credit rates and longer processing times, making it more important than ever to stay informed and prepared.
“The end of the financial year serves as a reminder for startups to actively manage their R&D tax credit submissions and seize fundraising opportunities. Staying on top of these tasks is key to starting the new fiscal year on a strong note”
For any questions, comments or features, please contact us directly.
