Accounting Advice for Small Businesses
Helpful tips that every small business owner should know about.
Accounting can be alien to many new and existing small business owners. It’s the side of owning your business that most people hate, managing books, finances, tax, VAT – it’s a hassle, but it doesn’t have to be…
With a little discipline and a good system in place, you can ensure this essential part of your business is running smoothly.
Keep Records & Receipts So You Don’t Fall Behind On Payments
Keeping on top of your finances and transactions takes discipline. Many new and smaller businesses are not used to having to account for their own transactions, and may, therefore, forget to record them.
Meaning they are often left exposed and potentially missing out on valuable tax deductions, or worse still, understate their income, leading to potential fines and penalties.
There’s a number of cloud accounting packages that allow you to track or submit your expenses on the go – even from your mobile or tablet. You may find this useful if you incur cash expenses on the move.
Another reason for ensuring your business keeps a decent record is to help guarantee you get paid by your customers – a top priority for small businesses with limited cash reserves. It’s extremely critical to keep track of incomings and outgoings and chasing up your customers who may have fallen behind on payments.
Gov.uk provides a full list of the records you must keep as a self-employed sole trade or as a partner in a business partnership right here.
Stick To Tax Return Deadlines & Forms
For most small businesses there are two deadlines that they have to comply with – one for filing tax returns and the other for paying the associated tax bill.
If your turnover exceeds £81,000 it’s likely you that you will also have quarterly VAT returns to file as well. On the plus side, this can be set up as a direct debit from your business bank account.
HMRC forms are notorious for being difficult to understand, meaning that often a simple tax return can take far longer than expected to complete, should you miss these deadlines, penalties can quickly build up – this is where an accountant can come in handy to ensure you meet those deadlines and perhaps even help your business to save tax and grow its turnover and profits.
How Do I Get Help With Filing My HMRC Tax Returns?
Stonehouse Accountants are experts in the field with years of experience. If an accountant is what you need then do not hesitate to contact us about our services to find out how we can help your business start growing today, simply click here.
Ensure Your Get Payroll Correct
Payroll is an important part of your business, firstly, because it’s a legal requirement to get it right (especially for tax purposes), and secondly, because if you don’t pay your employees correctly then they probably will not be your employees for very long.
With payroll, you have to consider taxation and act as a tax collector for your employees so later on you can pay the appropriate government taxes. You will also be responsible for reporting tax liabilities to the appropriate government agencies and your employees in writing.
In order to have a great payroll keep these three points in mind:
- Register your business – Using the registered business number in all your payroll documentation and any forms you submit to the tax office.
- Record your employee’s data – enter all your employees’ information in your payroll system but also include contact details, salary, days off, sick days, overtime and any other compensation.
- Set up an archive – for records that need to be kept for several years, think about how you’ll archive them.
Does Your SME Need Help With Its Accounting?
Remember as daunting as it may seem, you do not have to face the numbers on your own, Stonehouse Accountants can help alleviate some of the pressures we know many business owners face. For more information please contact us today on 01733 265888 – F Waller.