Spring cleaning your small business finances: 5 ways to set up for growth

Just like your home needs a good clear-out from time to time, your business finances benefit from regular tidying up too. When was the last time you properly sorted through your company’s financial systems? If it’s been a while, now is the perfect time for some financial spring cleaning.

Here are five practical ways to freshen up your business finances this spring.

1. Dust off your pricing strategy

When did you last review your prices? Many small businesses set their prices when they first launch and rarely revisit them, despite rising costs. This oversight can seriously impact your profitability.

Take time to analyse:

• Your current costs (which have likely increased)
• Competitor pricing (which may have changed)
• The value you deliver to customers (which has probably grown with experience)

One business owner in Kent discovered she was charging 20% less than competitors for comparable services, while another found that a small 5% price increase across the board added £12,000 to his annual profit without any customer pushback.

2. Sweep through your regular expenses

Costs have a habit of creeping up over time. Software subscriptions renew automatically, suppliers implement price increases, and before you know it, you’re spending far more than necessary.

Set aside time to review all regular expenses:

• Identify and cancel unused subscriptions
• Compare prices for regular services and supplies
• Negotiate better terms with long-standing suppliers
• Consider switching utility providers

Look especially closely at small regular payments – they might seem insignificant individually but can add up to thousands of pounds annually.

3. Polish your invoice and credit control systems

Poor cash flow kills otherwise profitable businesses. Streamlining your invoicing and collection processes can dramatically improve your financial position.

Consider these improvements:

• Switch to immediate electronic invoicing
• Review your payment terms (are they too generous?)
• Implement automated reminders for overdue invoices
• Consider incentives for early payment
• Create a clear process for dealing with late payers

Many businesses we work with have halved their average payment time simply by sending invoices promptly and following up consistently.

4. Organise your financial reporting

Making good business decisions requires good information. If you’re still relying on basic spreadsheets or waiting months for your year-end accounts, you’re flying blind.

Upgrade your financial visibility with:

• Cloud accounting software like Xero, FreeAgent or QuickBooks
• Regular management accounts (monthly or quarterly)
• Key performance indicators (KPIs) tailored to your business
• Cash flow forecasts that look 3-6 months ahead
• Budget vs actual reporting

Need help setting up meaningful financial reporting? Contact Adams Accountancy for a free 15-minute chat about how we can help you gain clarity on your numbers and make better business decisions.

5. Clear your tax calendar

Missing tax deadlines leads to penalties, interest charges, and unnecessary stress. Create a tax calendar for the coming year to stay ahead of your obligations.

Key dates to include:

• VAT return deadlines (usually quarterly)
• PAYE and National Insurance payment dates (monthly or quarterly)
• Corporation Tax filing and payment deadlines
• Confirmation Statement due date
• Self-Assessment deadlines for directors
• Annual accounts filing deadline

Consider setting reminders 4-6 weeks before each deadline to give yourself plenty of time to prepare.

Don’t forget the financial cobwebs

While you’re spring cleaning, don’t miss these areas which business owners often overlook:

• Review your business insurance (are you adequately covered?)
• Check your business banking (could you get better terms elsewhere?)
• Update your financial procedures (what would happen if you were unavailable?)
• Review your business structure (is it still optimal for tax purposes?)
• Check compliance with Making Tax Digital requirements

The rewards of financial organisation

Taking time to spring clean your finances might not sound exciting, but the benefits can be substantial. Our clients who undertake this process regularly report  improved cash flow, reduced stress over tax and compliance and cost savings from eliminating waste. Good financial management leads to better decision making based on timely information and more time to focus on growing their business rather than firefighting.

Making financial organisation a habit

The real secret to staying financially organised isn’t a once-a-year blitz but developing regular habits. Consider:

• Weekly: Review cash position and upcoming payments
• Monthly: Check management accounts and KPIs
• Quarterly: Deeper dive into profitability and expenses
• Annually: Comprehensive financial review and planning

Your accountant should be a key partner in this process, not just someone who files your tax returns once a year.

At Adams Accountancy, we help small businesses across Kent develop financial systems that provide clarity and support growth. Our friendly, approachable team specialises in making finances simple to understand – because no question is too silly when it comes to your business money matters.

Book your free financial spring clean consultation with Adams Accountancy today. A 15-minute chat could identify significant opportunities to streamline your finances and set your business up for growth.

Frequently Asked Questions

How often should I review my business’s financial records?

Financial review should be a regular habit, not a once-a-year task. For optimal financial health, check your cash position and upcoming payments weekly, review management accounts and KPIs monthly, conduct a deeper analysis of profitability and expenses quarterly, and perform a comprehensive financial review annually. This layered approach ensures you spot issues early while maintaining a long-term perspective on business growth.

What basic financial controls should every small business have in place?

Every small business should implement segregation of duties (where different people handle different aspects of finances), approval processes for expenditure above set thresholds, regular bank reconciliations, proper documentation for all transactions, and secure systems for handling cash and payments. These controls help prevent errors and fraud while ensuring your financial reporting remains accurate and reliable.

Is it worth investing in accounting software for a small business?

Absolutely. Cloud-based accounting software like Xero, FreeAgent or QuickBooks pays for itself many times over. These platforms automate tedious tasks, reduce errors, provide real-time financial insights, simplify tax compliance, and allow collaborative access with your accountant. Even for the smallest businesses, modern accounting software is no longer a luxury but an essential tool for efficient financial management.

How can I improve my business’s credit score?

To boost your business credit score, ensure you pay all bills and loans on time, maintain low credit utilisation (don’t max out your available credit), establish trade lines with suppliers who report to credit agencies, regularly check your credit report for errors, and keep your business information up to date with credit bureaus. A strong business credit score gives you access to better financing terms and lower interest rates when you need to borrow.

What financial records should I be regularly reviewing?

At minimum, regularly review your profit and loss statement (showing income, expenses and profitability), balance sheet (outlining assets, liabilities and equity), cash flow statement (tracking money movement in and out of your business), aged debtors report (showing who owes you money), and budget versus actual performance reports. These core financial documents provide a comprehensive picture of your business’s financial health.

How much of my profits should I reinvest in my business?

While there’s no one-size-fits-all answer, many successful small businesses reinvest 30-50% of profits back into growth areas. The right percentage depends on your business stage, industry, and goals. Early-stage businesses often need to reinvest more heavily in areas like marketing, product development, or equipment. Mature businesses might focus reinvestment on staff development or exploring new markets. Always maintain sufficient reserves for unexpected challenges alongside your reinvestment strategy.