You often get a few bumps and bruises along the way when you run your own business. We like to help our clients avoid these aches and pains with some useful support and services. Here are a few ways we can help.
Tax updates. Small business taxes often cause headaches. Do you struggle with Corporation Tax, Self-Assessment Tax, Value Added Tax (VAT) and National Insurance Contributions? There are different rules and schedules to understand along with multiple forms and reminders from HMRC. It’s easy to put it all to one side, planning to deal with it later. The problem is that, often, ‘later’ never arrives.
To make sure you know how much tax to pay or when, we send out payment schedules. We also send email reminders with dates of payments, amounts, and ways to pay. Instead of chasing so many different reminders, prompts and checking confusing updates, we make it simple for you.
Management Accounts. A lot of people think Management Accounts are only for large businesses. In fact, they really help small business owners understand important information about their finances.
Probably the most useful tool is your Profit and Loss statement – or P&L. It’s sometimes also called an ‘income statement’, a ‘statement of operations’, or a ‘statement of earnings’. It gives you an overview of things like:
payroll
expenses like advertising, rent and insurance
earnings from sales
other forms of income like rent.
If there are other specific things you want to manage, we can also set up other useful financial reports.
We offer you a monthly management account meeting to go through everything. We always say: ‘No question is a silly one’ and we’re always happy to explain anything that isn’t clear.
VAT. You were probably pleased when your business turnover went past £90,000. However, your success meant you had to register for VAT. It involves extra administration but it’s important to remember the VAT you charge isn’t part of your sales income.
It’s like looking after someone’s wallet for them. The money belongs to HMRC, so you need to manage it carefully. It’s the only way to make sure you have the right amount available when your VAT payment is due.
We keep track of all the VAT you pay on business purchases. We deduct this from the amount you collect, so you always pay the right amount to HMRC.
Payroll. It’s important to understand what each employee costs. Your hourly rate for payroll is not the full cost to your business. You also pay employers’ National Insurance Contributions (NICs) and pension contributions. You might also pay things like private medical insurance as an employee benefit.
We make sure you have a complete view of your employee costs. It helps you fully understand your business overheads. Then you can decide when or if it’s a good time to recruit a new employee.
Bank accounts. One of the best ways to simplify your business finances is to have a business bank account. However, it’s important to make sure you don’t use it for personal transactions. To keep everything clear, and to avoid paying extra tax, we can set up a regular transfer to your personal account each month. As a mix of salary and dividends it’s a tax efficient way to pay yourself. We’ll keep an eye on it for you if you’re one of our regular bookkeeping clients.
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