Keeping Your Records Neat Is Simple With These Tips
If you’ve ever experienced cashflow problems as a small business owner, follow this accountancy advice to simplify the number-crunching.
57% of small business owners have experienced cashflow problems, leaving one in seven unable to pay staff. The latest research conducted by Quickbooks also reveals that negative cashflow issues force business owners to turn down future work worth an average of £26,000. Small business owners are often under significant pressure to keep costs low, which results in them taking on multiple tasks including front-of-house, marketing, tech and also accounting. But not having a dedicated accountancy team in place, can be the difference between a thriving business and one that is forced to fold. Follow these top business accounting tips to give your small company every chance of success.
Inputting manual accounts figures into an Excel spreadsheet is a laborious task, and one that is likely to see you waste valuable time. HMRC’s Making Tax Digital has been designed to help business owners keep digital records and easily submit their VAT returns using specialised software. Those with a taxable turnover above the VAT threshold are required to submit in this way, but self-employed businesses with a lower turnover are also able to volunteer to do so instead of filing a Self-Assessment return. But outside of your tax filing obligations, using accountancy software will give you an at-a-glance overview of how your business is doing every time you log in.
Separate Personal And Business Accounts
As soon as you start out in business, make sure that you separate your personal account from your business account. Trying to keep on top of your business income and expenditure when you’re searching through a list of personal grocery transactions is a nightmare that you don’t need. Opening a business bank account is simple and will keep your records neat and tidy for your accountant to view.
Raise Invoices On Time
One of the biggest problems with cashflow is late payments from clients. Make sure that you raise invoices immediately and chase unpaid bills as soon as they’re late. The quicker you receive funds, the more money you’ll have to pump back into your business – either paying staff, investing in new materials and affording the bills for your premises.
Delegating Payroll Tasks
Payroll can be a time-consuming job for all business owners, whether you run it weekly, fortnightly or monthly. The more employees you have on the books, the more extensive the task can be. Due to the legalities of the payroll process, you may need to contact HMRC from time to time, to ensure that all red tape is satisfied particularly with regards to forms such as P45 or P46. If you don’t have the time or expertise to handle payroll, then this accountancy services Peterborough based firm is available to take the administrative burden off your shoulders.
If you don’t have an accounts team working for you, as is the case with many small companies, then your best course of action is to outsource your accountancy tasks to a professional team. By doing so, you’ll increase the amount of time that you have to put towards revenue-generating activities that will see your business go from strength to strength.