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
- Christopher Oatway, Business Advisor
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 analyze 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 optimization. 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.”
For any questions, comments or features, please contact us directly.
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.”
Christopher Oatway, Business Advisor
“I have been in business for 13 years, mainly in marketing across various sectors, perhaps the media have just been more active in promoting them but I have seen an increase in the number of start-ups (and established businesses) securing investment through either loans or equity release through platforms like Seedrs.
“I have seen various businesses forced to close or into call in administrators, whilst other stats suggest more and more businesses are starting up, all whilst the UK government and experts claim we’re in a recession.
“I’m no market or economic analyst but I do understand business and behaviour and why people do various things (as well as wondering why others do other things). Any business that is able to secure finance and funding support is extremely lucky and must be worth the risk – people don’t give money away lightly – and so it’s great to see that they can top up their cashflow but I would advise them to be careful and use the money wisely. Some of companies and projects seeking funding through investment rounds have stipulated that they want to accelerate and skyrocket their marketing. Whilst I understand this, I’d recommend using their networks and communities who follow niches to do things for free rather than relying and trying to break the minefield of algorithms.”
For any questions, comments or features, please contact us directly.
