When you’re caught up in the day-to-day running of your business, it might be a challenge to keep on top of paperwork and ensure your finances are in order.
So, while spring is traditionally a time for adding sparkle and shine to your home, it’s also an ideal opportunity to make sure your business finances are ship shape for the new financial year, which starts on 6 April.
Keep reading to discover five clever financial spring cleaning tips to help you refresh and reset your business.
1. Carry out a thorough financial review
Before you start thinking about making changes to your business, it’s important to gain an understanding of your current financial situation.
So, carrying out a comprehensive financial inventory is a useful way to start your spring clean. This might include:
- Gathering and organising financial documents
- Analysing and optimising your cash flow
- Evaluating debt and exploring refinancing options
- Reviewing regular expenses and identifying opportunities to cut costs
- Updating key financial records, such as your balance sheet and payroll documentation
- Assessing your financial performance and adjusting forecasts for the year ahead.
Taking the time to step back and review your business in this way could allow you to spot potential issues and opportunities you might not have noticed before.
What’s more, you might gain valuable insights that help you set clear and meaningful financial goals for the year ahead.
2. Embrace technology
Investing in new technology and upgrading outdated systems may seem expensive, but it could make tracking your business finances much more time- and cost-efficient in the long run.
For example, cloud-based accounting software could give you immediate access to key financial data wherever you are, be that in the office, at home, or on your commute.
You might also benefit from automating simple or repetitive tasks. Not only might this increase the accuracy of record keeping by removing the risk of human error, but it may also give you more time to focus on aspects of the business that require your unique knowledge and skills.
So, as part of your spring clean, it’s worth reviewing your processes and the digital tools you’re currently using. You might discover some golden opportunities to drive efficiencies by harnessing the power of new technologies.
3. Separate business and personal finances
Keeping a clear boundary between your business and personal finances separate is essential for:
- Clear and accurate financial tracking
- Reducing the risk of complications and legal disputes
- Compliance with tax rules and preparation for audits
- Building and maintaining trust with clients and stakeholders
- Maintaining operational efficiency
- Effective financial planning and forecasting.
Whether you’re an established business owner or you’re just getting started, a spring clean provides an excellent opportunity to check you’re managing the different areas of your finances effectively.
There are many ways to separate your finances, such as setting up individual bank accounts and registering your business as a separate entity.
As financial planners who specialise in supporting business owners, we can help you keep your personal and business finances apart and conduct regular reviews to ensure that you maintain this crucial separation.
4. Plan for the tax year ahead
When it comes to tax planning, there are certain key dates in any business owner’s diary, such as the deadline for submitting your self-assessment tax return (usually the 31 January each year) and the tax year end (5 April).
While these dates might seem far away at the start of a new tax year, starting to plan early could allow you to:
- Make the most of annual tax allowances and exemptions
- Meet key tax deadlines (such as submitting your self-assessment) and avoid penalties
- Prepare for changes to tax legislation, which often come into effect at the start of the next tax year.
For instance, you might be more likely to use your full annual ISA allowance of £20,000 (2024/25) if you spread your contributions across the year, than if you wait until just before your allowance resets on 6 April 2026 – when you’d need to find a lump sum to make the most of this tax-efficient savings option.
Likewise, if you keep on top of your financial records from the start of the new tax year, you may find it quicker and easier to submit your self-assessment tax return on time. This could help you avoid unnecessary stress and penalties – according to the Guardian, more than 1 million people faced fines in 2025 after missing the 31 January deadline.
5. Seek professional financial advice
As you can see, there’s a lot to think about when spring cleaning your business finances.
Fortunately, we have years of experience helping business owners review and update their finances in line with changing needs, business goals, and tax legislation.
So, if you need help dusting off and sprucing up your financial plan to keep your business on track, we’d love to hear from you.
To find out more, please get in touch. Email hello@sovereign-ifa.co.uk or call us on 01454 416653.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate tax planning.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Approved by Best Practice IFA Group Ltd on 20/03/2025