As another new year starts this is often a time of reflection upon our past year and an opportunity to look forwards towards another. January is also tax return time and for those self employed individuals it is necessary to make sure you have filed your self-assessment return and to pay your tax. In this blog I will be looking at cash flow planning and discussing the ways of managing both your cash and work flow to help plan for your tax and to improve productivity and efficiency.
Initially it is worth reflecting on the previous years in order to look for any issues or trends which you might be able to learn from. Reviewing your accounts can help to identify those times of year which tend to be very busy and those which are quieter. A key problem with managing quiet times is often that of cash flow as bills and expenses need to be paid all year round and a quiet spell can place pressure on available cash to meet your costs.
Consider what problems your quiet times cause you and on looking back at your past year, could you have done anything to spread the work more evenly? What might the reasons for the being busier or quieter at different times of the year?