To quote Benjamin Franklin, “nothing is certain but death and taxes,” but does end-of-financial-year pressure really have to be so exhausting?

While the shift towards digital payments is helping to improve tax-time processes, businesses still face a complex financial landscape. The continued use of legacy payment and accounting systems, evolving regulations and tax obligations, and the phased adoption of Faster Payments and Open Banking all contribute to the challenge of closing the books efficiently.

Take, for example, the UK’s £100 contactless payment limit. While the Financial Conduct Authority (FCA) is considering removing this ceiling – potentially allowing unlimited contactless transactions and more autonomous accounting processes – the reconciliation of old and new payment methods will remain a challenge until businesses and governments are fully digital.

But rather than waiting for policy changes, businesses should focus on what they can do today to simplify year-end financial processes for 2025/2026 and beyond.

For those who felt the pressure of closing the books at the end of their financial year, there’s good news – a range of tools and process improvements can help UK businesses leave the seasonal tax-time scramble behind.

Better invoice visibility

Financial year-end financial close is often chaotic due to limited invoice visibility, forcing finance teams into last-minute payment chases. When unresolved invoices pile up, businesses experience delays in revenue recognition, strained cross-team coordination, and potential compliance risks.

Modern payment technologies provide real-time insights into outstanding invoices, enabling businesses to identify overdue payments sooner, automate reminders, and streamline dispute resolution. By leveraging digital invoicing and automated reconciliation, finance teams can proactively manage receivables year-round rather than scrambling at year-end.

This shift not only reduces financial bottlenecks but also frees up sales and customer success teams to focus on growth rather than chasing late payments.

Smarter cash flow practices

Foresight is key to closing the financial year smoothly and entering the next with stronger financial resilience. For UK businesses looking to reduce stress next year, year-round expense tracking enables a consolidated, real-time view of cash flow trends, helping finance teams anticipate liquidity needs well in advance.

While automated payment technologies significantly reduce manual errors, categorise expenditures, and provide real-time reporting, businesses can also enhance cash flow management through process improvements. Strategies may include:

• Establishing strict expense policies with clear categories and approval processes
• Implementing corporate purchasing cards to track expenses consistently
• Negotiating long-term supplier contracts with fixed pricing to improve cost predictability

Additionally, maintaining a cash reserve safety net ensures businesses can meet year-end obligations – such as tax payments, bonuses, and supplier invoices – without relying on external funding. By reducing dependence on last-minute capital injections or short-term debt, businesses maintain financial flexibility and avoid high borrowing costs.

Simplified global tax reporting

For businesses operating in multiple countries, simplified tax reporting is essential to manage varied compliance requirements. A 360-degree view of revenue and sales data ensures accurate reporting, reducing the risk of misfiling, penalties, or audit complications.

Beyond modern payment technologies, businesses can streamline global tax compliance by:

• Using standardised tax allocation methods to track obligations by country.
• Scheduling tax prepayments to avoid last-minute compliance issues
• Engaging local tax experts to ensure alignment with region-specific VAT, GST, or digital services tax requirements

Ultimately, a data-driven approach to tax reporting enhances a company’s compliance, minimises administrative burden, and allows them to focus on growth rather than tax complexities.

By embracing automation, refining invoice management, and adopting smarter cash flow practices, businesses can streamline year-end financial processes and enter the next fiscal year stronger for it.

The key to leaving the tax-time scramble in the rear-view mirror isn’t waiting for regulatory shifts – it’s proactively adopting best practices.