Many new and small businesses aren’t used to having to account for their transactions and might forget to record them. In this way they miss out on valuable tax deductions on expenses or even understate their income, resulting in potential fines and penalties.
However, there are many cloud accounting packages that enable you to track or submit your expenses on the go, from your tablet or mobile.
Another advantage of cloud accounting software is that you can store bills and receipts online rather than in shoe boxes. Small businesses often don’t have the in-house expertise to account for these transactions in a correct manner.
Another significant reason for ensuring your business keeps records is to help you get paid by your customers, which is a top priority for small businesses which have limited cash reserves.
Accounting advice for deadlines and forms
Most small businesses have at least 2 deadlines to comply with, one for filing tax returns; and the other for paying the associated tax bill. As well as complying with the above deadlines, the HMRC forms are notoriously difficult to comprehend, meaning an often simple tax return might take far longer than planned.
An accountant can make sure you meet those deadlines, and perhaps aid the business to save tax and increase its turnover and profits.
Accounting advice for dealing with company administration
Assuming the business is owner-managed, there are a number of legal and financial problems that company directors must be holding cognizance of. They need to know how to extract profits from the business efficiently from a tax point of view. They need to make sure any dividends voted for are within the profits available after tax. Therefore, ideally, they should be well aware of profits as they go along.
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