Getting Your Accounts in Shape: A Guide for the 2025/26 Tax Year
The new tax year is now in full swing, making it the perfect time to take control of your finances, streamline your processes and plan ahead for success. Whether you’re a sole trader, a company director, a freelancer, or work in other kind of way, putting time aside to get your accounts in shape now can save you a great deal of stress (and money) later on.
So, let's take a look at some ways to starting the 2025/26 tax year on the right foot.
Review last year’s performance
Before you look ahead, it’s important to look back. Reviewing your financial performance for 2024/25 will give you a clear understanding of where your business stands. Identify areas where you exceeded expectations, as well as any challenges or unexpected costs. Analysing this data will allow you to set realistic goals for the year ahead and highlight where changes need to be made.
Organise your records
Good record-keeping is the foundation of a healthy accounting system. Make sure that all of your income and expenditure records are complete, up-to-date and easily accessible. If you’ve been relying on spreadsheets or paper-based systems, now is the ideal time to consider cloud accounting software. Platforms like Xero, QuickBooks and Sage help to keep things organised and give you real-time insights into your cash flow and profitability. It also means that you'll be on the right track as Making Tax Digital is rolled out to other areas of tax.
Plan for upcoming tax changes
Each new tax year often brings updates to allowances, thresholds and regulations. For 2025/26, be sure to check any changes to Corporation Tax, Income Tax, VAT thresholds and National Insurance rates that could affect you. Staying informed will ensure you're not caught out and can plan your cash flow more effectively.
Don't forget that the team at TreyBridge Accountantsis here to keep you fully updated, enabling you to make informed decisions throughout the year. Get in touch for up-to-the-minute developments and advice.
Set a budget and a cash flow forecast
A robust budget is vital for managing your business’s finances and achieving your goals. Start by setting a realistic income target and listing all fixed and variable expenses. Creating a cash flow forecast alongside your budget will help you to predict potential shortfalls and plan for quieter periods. This is especially important in the current economic climate, where flexibility and resilience are more important than ever.
Take advantage of available allowances and reliefs
The new tax year is a fresh chance to make full use of tax allowances and reliefs. This might include the Annual Investment Allowance for equipment purchases, R&D tax credits for innovative businesses, or using the full benefit of your personal tax-free allowance. Our accountancy experts will ensure you're not missing out on any opportunities to reduce your tax liability legally and efficiently.
Most importantly, speak to TreyBridge Accountants today
Getting your accounts in shape at the beginning of the 2025/26 tax year puts you in a strong position to grow, adapt and succeed. Fill in the contact form to book a friendly chat with one of our accountancy and finance specialists.
Tagged as: Accountancy Tips & Advice
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