At the end of the financial year: are you ready for the next 12 months?

Swoop looks at how businesses can take advantage of opportunities and make themselves more resilient in the new year.

How do you rate last year’s performance? A record-breaking thrill ride or a testament to your perseverance? Either way, as we approach the end of the financial year, now is a good time to reflect on lessons learned and how to approach the next 12 months. The future is ripe with potential, waiting for your decisive action.

Are you prepared to maintain the status quo, or are you driven to initiate significant change? Will you prioritize customer acquisition, or invest in strengthening existing relationships? Are you actively pursuing new opportunities, or finding efficiencies within your current operations?

At Swoop, we’re in the trenches with SMEs, engaging with businesses across the spectrum of success. As a new financial year dawns, we’re sharing actionable strategies observed to foster resilience and propel growth.

Please remember: there is no magic formula. Every business is unique and ultimately you are responsible for how you adapt these ideas to suit your specific circumstances.

Keeping the books in order

Between now and the EOY, you should ensure your financial housekeeping is in good order:

• Close the books accurately: ensure your financial records are complete and up-to-date. Make sure you reconcile bank statements, categorise all transactions and prepare accurate financial statements such as profit and loss and balance sheet.
• Minimise outstanding payments: collect outstanding invoices promptly to improve cash flow and avoid bad debts. Offer early payment discounts or consider outsourcing collections if necessary.
• Optimise expenses: review your expenses and identify areas for cost reduction. Negotiate better deals with suppliers, eliminate unnecessary subscriptions and implement cost-saving measures.
• Understand your tax obligations: stay informed about relevant tax laws and deductions. Swoop and your accountant will work with you to optimise your tax position and avoid penalties.
• Prepare for upcoming tax deadlines: file your tax returns on time and avoid penalties. Understand your estimated tax payments for the next year and adjust your withholding accordingly.

A clear strategy for 25/26

Taking stock of last year’s performance, whether positive or negative, should remind us all of the need for forward-thinking planning. Complacency can undermine even the strongest businesses, while those driven to expand must identify and address the constraints that hinder their progress.

• The big news is that National Insurance changes will make the cost of employing people more expensive. If hiring more staff is key to your business growth, you will want to double check your figures to ensure that you are able to afford them. 
• How are you using technology? Remember: tech makes big promises but it is just a tool and a tool will not do the job for you – especially if you don’t know how to use it. The winners in the current tech race will be those who use the new tools the best and that almost inevitably means getting outside help. 
• High inflation will continue to impact SMEs, making it harder to predict revenue and manage costs. Now is a good time to do a financial “spring clean”, ensuring that you’re not spending money on products or services you don’t use (business bank accounts, for example, often bundle things your business doesn’t need). Remember: cash is king. Many SMEs struggle with managing cash flow due to delayed payments, seasonal fluctuations, or unexpected expenses, which can be a major obstacle to survival and growth. 
• Know where your funding is coming from: our mantra is that the best time to get funding is when you don’t need it. Imagine if you were hit by a huge bill tomorrow – how would you cover it? With turmoil in the headlines, you should have a plan for how to access additional funds should the need arise unexpectedly. 
• How’s your cybersecurity? SMEs are increasingly targeted by cyberattacks and the lack of resources and expertise to address these threats can be a major risk. Check your insurance policy and make sure your business will be supported in practical ways should the worst happen.  

Conclusion

Success in 2025 and beyond will be built on both the traditional foundations that have always served SMEs well, plus the emerging technologies that will underpin our future prosperity. Most business owners will see huge benefits from networking with peers, having access to professional expertise and being bold with innovation. 

Successful SME owners will also be those who creatively and intelligently use the latest tools to run their businesses more efficiently, find new customers and maximise their ROI. 

With Swoop, funding is at your fingertips, transforming ambitious plans into tangible results: there is no better way to access the funding currently in the market. From VAT and Corporation Tax funding to smooth your cashflow to commercial mortgages, help claiming R&D Credits and switching to better deals on a range of products from bank accounts to insurance, Swoop is your virtual CFO. Get started with Swoop today!