As the year comes to a close and a new one begins, the end of the fiscal year becomes a critical milestone for every company, especially for startups. This period is an opportunity to review the business activities of the past year and plan for the next, focusing on efficiency, growth, and tax savings. At Danoy, we understand how crucial it is to optimize this time for our clients’ financial management and planning. Here’s how we assist startups during this critical period.
Actions to Reduce Tax Liability
The end of the year is an excellent opportunity to legally and strategically reduce tax payments. Danoy’s finance department advises clients to bring forward expenses that can lower taxable income, such as purchasing services for the upcoming year. We also assist with obtaining various approvals from the Innovation Authority to recognize R&D expenses or secure tax benefits. Additionally, we might propose bonus distribution plans or other benefits for employees that not only enhance their sense of appreciation but also reduce the company’s tax liability.
Closing the Fiscal Year Methodically
As an outsourced finance department specializing in startups, we know how important it is to maintain organized operations throughout the year. However, the end of the year presents an opportunity to finalize all required financial reports, conduct a comprehensive review of bookkeeping, ensure compliance with various reporting standards, reconcile accounts, and prepare materials for the annual audit. This meticulous work ensures that our clients start the new fiscal year on the right foot, avoiding regulatory or bureaucratic issues.
Preparing for the New Fiscal Year
The new year brings fresh financial challenges, and Danoy ensures that the startups and other clients we support are prepared for any scenario. We update the company’s financial strategy to reflect changing market conditions and its financial state, ensuring readiness for events like hiring new employees, increased revenues, tax payments, necessary investments, and capital-raising rounds or due diligence processes. Our planning also includes efficient cash flow management throughout the year.
Strategic Meetings with Management
One of the significant advantages of working with Danoy as an outsourced finance department, as our clients often say, is the ongoing communication we maintain with management. This is particularly critical at the end of the fiscal year. During this time, we hold meetings with the CEO and senior management team to summarize the past year, present data and insights, and discuss plans for the upcoming year, with an emphasis on preparing an updated budget. These meetings enable the CEO and management to make informed, focused decisions that promote the company’s growth and financial stability.
Internal Review and Identifying Opportunities for Investment, Growth, and Savings
The extensive work we do for every startup or client toward the end of the year also provides an opportunity to take a broad look at the company’s financial activities. During this process, we often identify areas where it would be beneficial to invest additional resources, such as developing new products, entering new markets, or making strategic acquisitions. Similarly, we frequently spot opportunities to save on various operational expenses, which can amount to significant sums. All these insights are shared with the company’s management and integrated into the financial plan for the upcoming year.
A New Year, A New Opportunity
If you want to end the fiscal year on the best possible note, identify opportunities for efficiency and savings, and execute quality strategic financial planning for the coming year, we invite you to contact us. We would be happy to help you manage the finance department of your startup or organization.