February is a quieter month on the calendar but it’s one of the most important for getting ahead financially before the year gains momentum. With the rush of January behind us, now is the ideal time to review your goals, refine your budget and make sure your plans are still aligned with what you want to achieve in 2026.
Small adjustments made now – whether increasing savings, reviewing investments, or getting organised for tax time – can have a big impact over the rest of the year. By using February to plan, review and prepare, you put yourself in a stronger position to make the most of opportunities as they arise and stay on track for a financially successful year.
We begin this month with a look at one of the key pages in your accounts.
What is a Balance Sheet?
Your Balance Sheet gives you a big picture view of your business. It shows whether your business is becoming more valuable over time, whether it’s funded the right way and whether you’ve got enough cash to keeping things running day to day.
Knowing your numbers really matters. Your Balance Sheet is one of the most important financial reports because it shows you what your business owns, what it owes and what would be left for you if everything stopped tomorrow.
A business can be profitable and still get into trouble if the Balance Sheet isn’t strong. This happens more often than people realise. Here are three common examples:
1. Sales grow but cash doesn’t
If you’re not billing or collecting payments efficiently, you can run short of cash, even when sales look great.
2. Too much debt
Borrowing can help grow the business but if sales dip, loan repayments can quickly become a problem, even if you’re still making a profit.
3. Taking too much out of the business
You might be earning money but not leaving enough behind to pay tax or replace equipment and assets.
Key Things to Watch on Your Balance Sheet
Do you have enough working capital?
Working capital is your current assets (cash, debtors, stock), minus your current liabilities (creditors, tax, loans due within 12 months). If this number is negative, cashflow will be tight and your business will feel the strain.
How long does it take customers to pay you?
Divide your total debtors by annual sales and multiply by 365. This tells you how many days it takes to collect your money. The lower the number the better. Compare this to the payment terms on your invoices.
How quickly are you turning stock into cash?
Divide total sales by closing stock. A higher number means you’re selling and replacing stock faster, which is good for cashflow.
Is your shareholder’s current account helping or hurting?
If it shows as an asset, it means you owe the company money, which is not a great position to be in.
Are your assets pulling their weight?
Divide net profit by total assets to get your return on assets. Compare this to what you could earn from other investments, to see if your business is really worth it.
Every business is different, so the key numbers will vary. Looking at real-time data instead of last year’s financial statements gives you a much clearer idea of how your business is tracking right now.
Payrolling Benefits and Expenses
If you plan to payroll benefits and expenses, you must register with HMRC using their online service before the start of the new tax year (5 April 2026).
Registering allows you to collect tax on benefits through payroll, meaning you won’t have to submit form P11D for the benefits you payroll. During the registration process, you must specify exactly which benefits and expenses you want to include. HMRC will then amend the tax codes of all employees receiving these benefits, unless you choose to exclude specific employees through the online service.
Once you’ve registered, you are required to inform affected employees in writing, explaining that their benefits are being payrolled and how this will affect them.
If you miss the registration deadline, you won’t be able to payroll benefits until the following tax year, so it’s important to act in good time.
Is Stepping into a Leadership Role Stirring Up Mixed Emotions?
Holding the seat of a leader can bring up doubts, fears and self-limiting beliefs that quietly hold you back. But when you dismantle those beliefs, everything changes. You can:
- Unlock your full leadership potential
- Lead with clarity, purpose and confidence
- Inspire your team and drive measurable business results
If this resonates with you and you feel ready for support, our transformational Leadership Support Package is designed to guide you forward. Through our leadership module, you’ll gain:
- A deeper understanding of yourself
- Stronger, more effective communication skills
- Increased energy and motivation
- A healthier, more balanced work-life position
Take a moment today to reconnect with what truly drives you. Or get in touch, we’d be happy to help you explore what’s next.
Ready to take the next step? Discover how our Leadership Support Package can transform your business – visit our website today!
Our Community
At Clear Vision Accountancy, we believe strong communities create a better future for everyone. Whether we’re supporting local causes, championing our team, or getting involved in national initiatives, giving back is at the heart of everything we do.
We’re proud to be the official ball sponsor for Corsham Cricket Club 1st XI for a second season running. We’re delighted to support a team that brings such passion, commitment and community spirit to the game.
Our community involvement goes well beyond the workplace. Our Managing Director, Matt, volunteers his time as a youth coach at AFC Corsham, helping to inspire and develop the next generation of players. Clear Vision Accountancy also sponsors AFC Corsham Tigers U7s, supporting grassroots football and encouraging young talent to grow both on and off the pitch.
We’re equally proud to support The Samee Project as our nominated annual charity. Working across Dorset, Devon, Hampshire, Somerset and Wiltshire, this fantastic organisation helps people with disabilities access meaningful employment and build greater independence.
In addition, we’re always keen to support our clients when they take part in charitable and community-led initiatives, whether through fundraising, sponsorship or awareness – because when our clients give back, we believe in standing alongside them and helping to make an even bigger positive impact.
How We Can Help
If you have any questions about the topics covered in this month’s newsletter and how they might affect you or your business, please don’t hesitate to get in touch.
At Clear Vision, we’re a team of dedicated professionals, each with our own unique skills. We love supporting our clients and are always here to provide the guidance you need.
However you need us to support you through your journey as a business owner, we’re here for you!
“Life isn’t a matter of milestones, but of moments.”
Rose Fitzgerald Kennedy