Why March is the perfect time to sort out the money stuff you’ve been avoiding
There’s something about spring that makes you want to open all the windows, chuck out the clutter, and start fresh. The daffodils are popping up, the days are getting longer, and suddenly that pile of paperwork you’ve been ignoring since January feels like it’s judging you.
Good news: you’re not alone. And even better news: March is actually the perfect time to tackle it.
Why Spring Cleaning Your Business Matters
Here’s what I see all the time: business owners who are brilliant at what they do, but the admin side? It’s like that junk drawer in the kitchen – you know, the one where you shove everything “just for now” and then six months later you can’t actually find anything when you need it.
Your business finances can end up exactly the same way. A receipt here, an invoice there, expenses you meant to log, that tax deadline you’re pretty sure is coming up but you’re not quite certain when…
The problem isn’t that you’re disorganised or lazy. It’s that when you’re busy running your business, the “sorting it all out properly” bit keeps getting pushed to tomorrow. And tomorrow. And tomorrow.
Until suddenly it’s not just a small mess – it’s overwhelming.
The Real Cost of Financial Clutter
Let me paint you a picture of what “winging it” actually costs:
Sarah runs a small design business. She’s talented, her clients love her, and she’s always busy. But her finances? Complete chaos. Receipts in her handbag, her car, probably a few in the washing machine. She invoices when she remembers. She has no idea what she’s actually making after expenses.
Last month, she spent three hours looking for receipts for a project that happened six weeks ago. Three hours she could have spent on actual paid work. Three hours of her life she’ll never get back, and she still couldn’t find everything.
Then HMRC sent a letter about her tax return. Not a problem letter – just a standard reminder. But because her records were such a mess, that simple letter triggered a full day of panic-induced admin scrambling.
Sound familiar?
The cost isn’t just time (though that’s bad enough). It’s the mental load. That nagging background worry that you might be missing something important. The stress every time you look at your bank balance. The anxiety about whether you’re even making any money or just staying busy.
Your Spring Cleaning Checklist
Right, let’s break this down into manageable chunks. You don’t need to do everything today. You don’t even need to do everything this week. But if you can tackle these areas over March, you’ll feel completely different about your business finances.
1. The Receipt Roundup
The Problem: Receipts everywhere. Car, bag, pockets, that “deal with later” pile on the kitchen table.
The Spring Clean:
• Gather every receipt you can find (yes, all of them)
• Take photos and save them in a dedicated folder (on your phone is fine)
• Match them to bank transactions
• Make a list of anything you can’t find but know you spent
The System: Moving forward, photograph receipts immediately. Same day. Before they fade, get lost, or go through the wash. Create a simple routine: make purchase, photograph receipt, done.
Why This Matters:
For sole traders: You can only claim expenses you can prove. Every lost receipt is money you’re essentially giving to HMRC for no reason. If you’re a basic rate taxpayer, every £100 of lost receipts costs you £20 in unnecessary tax. Higher rate? That’s £40. Add it up over a year and suddenly we’re talking proper money.
For limited companies: We can only reclaim VAT on expenses where we can prove we incurred VAT. No proper VAT receipt? No VAT reclaim. That’s 20% of the expense you can’t get back. Plus, Companies House requires you to keep proper records of all transactions – it’s not optional, it’s a legal requirement.
The separate account problem: Here’s where it gets messy. If you don’t have a separate account for all business purchases – or if you occasionally use the wrong card – you end up with personal and business expenses all jumbled together. Come tax time or audit time, you’re trying to remember which coffee was a client meeting and which was just because you fancied one. Which petrol was a business trip and which was the school run. It’s exhausting, time-consuming, and increases the chances you’ll miss legitimate expenses or accidentally claim things you shouldn’t.
One account for business. One for personal. Keep them separate from day one, and your future self will be eternally grateful.
2. The Invoice Audit
The Problem: Invoices sent whenever you remember. Some paid promptly, some languishing for months. You’re not quite sure who owes you what.
The Spring Clean:
• List every outstanding invoice
• Check when each was sent
• Note which clients consistently pay late
• Send polite but firm reminders for anything overdue
• Review your payment terms – are they actually working?
The System: Set a weekly “invoice date” and stick to it. Every Monday, every Friday, whatever works – but make it routine. Use accounting software that reminds you when invoices are overdue.
Why This Matters: This is your money sitting in someone else’s bank account. And here’s the thing about cash flow that trips people up: you can be profitable on paper but skint in reality if everyone owes you money. Being too polite to chase invoices is an expensive personality trait.
3. The Expense Reality Check
The Problem: Subscriptions you forgot about. Software you’re not using. Expenses that made sense once but now just drain your account.
The Spring Clean:
• Review your bank statements for the last three months
• Highlight every recurring payment
• Ask yourself honestly: am I actually using this?
• Cancel anything that’s not earning its keep
• Check for any sneaky price increases you didn’t notice
The System: Set a quarterly reminder to review all subscriptions. Technology changes fast. What was essential last year might be redundant now. Or you might be paying for three different tools that do basically the same thing.
Why This Matters: I’ve seen clients discover they’re spending £100+ per month on subscriptions they barely use. That’s £1,200 a year. Imagine what you could do with an extra £1,200 – invest in marketing, hire help, or simply pay yourself properly for once.
4. The Tax Position Check-In
The Problem: You’ve sort of set money aside for tax. Maybe. You think. You’re not entirely sure if it’s enough. And you’re definitely not 100% certain when it’s actually due.
The Spring Clean:
Know your deadlines:
• Sole traders: Self-assessment filing deadline is 31st January, with payment due the same day (plus a payment on account in July if your bill was over £1,000)
• Limited companies: Corporation tax filing deadline is 12 months after your year-end, but payment is due 9 months and 1 day after your year-end. Annual accounts must be filed with Companies House within 9 months of your year-end
• Write these dates down. Put them in your calendar. Set multiple reminders. Seriously.
• Calculate what tax you actually owe so far this year (or get help doing this – it’s what we’re here for)
• Check what you’ve saved towards it
• Work out the gap (and try not to panic)
• Make a realistic plan to bridge that gap before your payment deadline
The System: Every time you get paid, immediately move money aside for tax.
If you’re not sure how to calculate it exactly, here’s a safe rule of thumb: put aside approximately 20% of your revenue. This should give you a buffer rather than leaving you short.
• For sole traders: This covers income tax and National Insurance contributions
• For limited companies: This helps cover corporation tax (and remember, you personally need to save for tax on any salary and dividends you take too)
Move it to a separate account immediately. Not next week. Not when you get around to it. Immediately. Treat it like it’s not your money – because it isn’t. It’s HMRC’s money that you’re temporarily looking after.
Why This Matters: That sick feeling when your tax deadline arrives and you realise you owe more than you have saved? We can avoid that. Completely. Forever. It just requires moving money around when it comes in rather than hoping it’ll magically appear later.
For limited companies, there’s an extra layer: Companies House requires you to keep accounting records that show all money received and spent by the company, and what it relates to. This isn’t just good practice – it’s the law. If you can’t produce proper records, you’re not just disorganised, you’re potentially in breach of your legal duties as a director. The penalties for not keeping proper records or filing late start at £150 and go up from there – money that could be much better spent on literally anything else.
5. The Cash Flow Deep Clean
The Problem: Some months feel flush, others feel terrifying. You’re not quite sure why. Your bank balance and your profit don’t seem to match up and you can’t work out where the money goes.
The Spring Clean:
• Track every penny in and out for one month (yes, really, every penny)
• Identify your patterns – when do you actually get paid vs when do you invoice?
• Note your regular outgoings – what HAS to be paid and when?
• Look for surprises – what costs more than you thought?
The System: Start using accounting software if you’re not already (yes, I know, another thing to learn, but I promise it’s worth it). Reconcile your bank account weekly – just 15 minutes – so you always know where you stand.
Why This Matters: Remember Sarah from earlier? When she finally tracked everything properly, she discovered she was spending nearly £800 a month on things that weren’t generating any income. She also realised her cash flow problem wasn’t that she wasn’t earning enough – it was that clients were taking 60+ days to pay while her expenses were due immediately.
Understanding your cash flow isn’t just about knowing numbers. It’s about making better decisions. Can you afford to hire help? Should you invest in that course? Can you say no to that client who’s more trouble than they’re worth? You can’t answer any of that confidently without knowing your cash position.
The Pricing Spring Clean (Growth Swingers, This One’s For You)
If you’re approaching or past the VAT threshold, there’s another layer to your spring cleaning: your pricing structure.
Here’s the uncomfortable question: When was the last time you properly reviewed your prices?
Not just added a bit on top. Not just kept them the same because “that’s what the market will bear.” Actually sat down and calculated:
• What does it cost you to deliver this service?
• What’s your time actually worth?
• Are you pricing for profit or just for survival?
• Does your pricing structure still make sense if VAT is added?
Many businesses drift into undercharging. You set prices when you started, they felt like a lot at the time, and you’ve never quite had the confidence to change them properly. Meanwhile, your costs have gone up, your expertise has increased, and you’re working harder but not earning more.
The Spring Clean: Review every product and service you offer. Calculate the true cost (including your time). Check what competitors charge. Then make a decision about whether your prices still make sense – or whether they’re legacy pricing that’s holding your business back.
What Happens If You Don’t Spring Clean?
Let me be straight with you: nothing dramatic will happen immediately.
You won’t get arrested. Your business won’t spontaneously combust. HMRC probably won’t send bailiffs round (probably).
But here’s what will happen:
• That low-level anxiety about money will continue
• You’ll keep making decisions based on guesswork rather than data
• Tax season will remain stressful instead of straightforward
• You’ll work harder without earning more
• That feeling of “I should be doing better than this” will persist
And the gap between where you are and where you want to be? It’ll stay exactly the same. Because you can’t improve what you don’t measure, and you can’t measure what you’re avoiding looking at.
Ready to Actually Do This?
I know what you’re thinking: “This all sounds great, Amy, but WHERE DO I START?”
Good question. Because reading about spring cleaning is one thing. Actually doing it? That’s where most people get stuck.
Here’s the thing: you don’t need to figure this out alone. You don’t need to spend your entire weekend sorting through receipts and spreadsheets and trying to work out if you’re doing it right.
I’ve created something to help.
It’s a free micro-course that walks you through exactly how to spring clean your business finances – step by step, no jargon, no judgement. Think of it as having me sat next to you with a cup of tea, showing you exactly what to tackle and in what order.
Sign up for the free Spring Clean Your Business Finances micro-course here →
And because I genuinely give a monkeys about helping you get this sorted, everyone who completes the course gets a complimentary Power Hour with me – a proper strategy session where we look at your specific situation and create a plan that actually works for you.
No generic advice. No “you should probably…” Just clear, actionable steps for YOUR business.
The Bottom Line
Spring cleaning your business finances isn’t about being perfect. It’s about being intentional.
It’s about choosing to spend a few hours now so you don’t spend months feeling anxious and overwhelmed.
It’s about building systems that work for you rather than constantly fighting against chaos.
It’s about making decisions based on actual data instead of hopeful guessing.
And most importantly, it’s about creating the space – mentally and practically – to focus on the work you love instead of drowning in the admin you dread.
The daffodils are up. The days are getting longer. Your business finances are calling for a spring clean.
What are you going to do about it?
Amy
Lednor Accounting – The accountant who gives a monkeys!
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Ready to stop monkeying around with your messy finances? Sign up for my free Spring Clean Your Business Finances micro-course and get a complimentary Power Hour strategy session. Let’s turn that financial chaos into clarity – together.