Small Business Saturday Blog
10 Top Money Tips for Small Businesses
Thursday, February 01, 2018 at 09:37
Money is always a hot topic for Small Businesses so we spoke to Shohaib from Integrity Accounting and gained his top tips to help all types of business with their finances in 2018.
Top Tip No. 1 – Choose the right company Structure
Choosing the right company structure is a really importantdecision required before the business commences trading. Company structures in Sole Trader,Partnerships, Limited Liability Partnership, Community Interest Companies andLimited Companies, to name but a few. Focusing on Sole traders and Limited Companies, our recommendation isthat if you plan on operating the business for the long term, then setup as alimited company. If you want simpleraccounting and to manage the returns for the business yourself, then setup as asole trader.
Top Tip No. 2 – Plan, plan and plan again
The better you can plan for your business, the better thebusiness will be prepared for peak and troughs in trading. We recommend that business owners take atleast 1 or 2 days per month, working on the business to review the past monthsperformance and to plan ahead for the next year or 18 months. Please get in touch with us if you’d like afree cash flow spreadsheet to see when the business will have surplus cash orwhen there are likely to be pressures on cash.
Top Tip No. 3 – Cloud Accounting
In recent years, accounting software has evolvedsignificantly, and this evolution has enable business owners to maintain theirbookkeeping records quickly and efficiently. Cloud accounting also enables you to give access to professional trustedadvisor, like us at Integrity Accountancy, real time access to your accountingrecords enabling business owners to access really good advice for theirbusiness. Plus cloud accounting softwarecheap and effective, with monthly payments reducing the need for a biginvestment in your accounting software.
Top Tip No. 4 – Meet Deadlines
When you run a business, always ensure that you submit annualaccounts, corporation tax return and self-assessment tax returns before theirdeadlines. Also, if you owe tax, payyour tax before it comes due. This willensure that you are up to date with a key creditor for all businesses, HMRC.
Top Tip No. 5 – Utilise Allowances
There are so many allowances available to business owners andbusinesses of all shapes and sizes, and these include the following:
Income Tax Allowance - £11,500
Dividend Allowance -£5,000
Mileage Allowance - 45p 1st 10,000 miles, 25pafterwards
Marriage Allowance – Partner earns less £11,500, save up to£230
Annual Investment Allowance – up to £200,000 invested inassets
R&D Tax Credits – reduce corporation tax by £130 on topof every £100 of qualifying costs
For many allowances, there are rules as to who they areavailable to and how they are used so always get professional advice if thereis anything that you are unsure of.
Top Tip No. 6 – Claim for Travel & Subsistence
If you incur costs relating to travel and subsistence whilstworking for your business, make sure that you claim these periodically (ideallymonthly) from your business. These costscan include Air, Train, bus, and taxi fares, parking, the London congestioncharge and tolls, subsistence expenses e.g. lunch while out, hotel and meals,if you need to stay away from home and mileage when using your own vehicle. Again, always get advice from an accountantto ensure that you are entitles to claim these costs.
Top Tip No. 7 – HMRC Workshops
HMRC does give some things away for free and their workshopsare fantastic for business owners. Thereworkshops cover topics such as:
• employer online filing andrunning a payroll
• becoming self-employed andself assessment for self-employed people
• Construction Industry Scheme
• setting up a limited company
• introduction to VAT
• introduction tointernational trade
They also have free payroll software to allowbusiness to manage their own payroll and report their details directly to HMRCthemselves.
Top Tip No. 8 – Budget for Tax
If you are a profitable business then you are almostcertainly likely to have a tax liability, whether it is income tax and NI,corporation tax or VAT. So budget forthe tax that you will owe to ensure that you have funds set aside for theseliabilities. For most business werecommend setting aside between 20% and 30% of turnover in a separate businessdeposit account for when there is tax to pay.
Top Tip No. 9 – Claim Costs of working from Home
If you do work for your business from home, you can offsetthe costs of running your home against your business if you have a designatedspace in your home that you use solely for business purposes. There are a couple of method, the Flat RateMethod (simple) and the Costs Method (more detailed). The flat rate method enables you to be paidcosts based on the number for hours that you work at home:
25-50 hours:£10 permonth
51-100 hours: £18per month
101 hours +: £26 per month
Top Tip No. 10 – Get a Good Accountant
Getting a good accountant for you and your business should beseen as being an investment in your business, and as with any investment, thisshould reap benefits for your business. When it comes to choosing an account, you should consider the following:
- · Ask yourself if location matters
- · Choose a certified or chartered accountant
- · Look for an accountant with relevant expertise
- · Talk to government and business associations
- · Tap into your social networks
- · Make use of your connections online
- · Decide how the accounting work will be divided
- · Get someone who’s proactive about saving you money
- · Find out what software the accountant uses
- · Do background checks
- · Learn to use and trust your intuition
If you’d like any further details,please contact us using the details below.
About the Author
Shohaib Shafiq ACMA CGMA is the principalaccountant at Integrity Accountancy Services Limited. Integrity Accountancy specialise in workingwith SME’s that want accountants that do more than just tax returns. They work as a businesses trusted adviser,working to add value to their clients, by providing a proactive accountancy service.
Facebook: @IntegrityAccountancyServices
Twitter: @IntegAccount
Categories:
- Inspire Series (1)
- Monday Seller Success With Ebay (8)
- Small Biz 100 (1)
- Small Business Saturday Uk Champion (2)
- Smallbiz100 (8)
Latest Posts:
- Spice up your life12 Weeks Ago
- The cycle continues4 Months Ago
- Why apply to be a #SmallBiz100 2024?7 Months Ago
- Saying cheese in Prestatyn14 Months Ago
- Hitting the sweet spot in Bucks and Oxon14 Months Ago
- Telford’s Lean Green Eco Machine14 Months Ago
- We all scream for ice cream14 Months Ago
- #SmallBiz100 Joco returns to its roots14 Months Ago
- Coming in from the cold in central London14 Months Ago
- Bitten by the bug in East Sussex14 Months Ago
- Still rocking in Southend on Sea15 Months Ago
- Nobody's fool15 Months Ago
- 16 years of love in Ipswich15 Months Ago
- Small businesses celebrated at the Blue Tie Ball15 Months Ago
- Why apply to be a #SmallBiz100 2023?20 Months Ago
- Zero to hero in Nottingham3 Years Ago
- Monday Seller Success with eBay: That Vintage Football Shirt3 Years Ago
- Rock on in Southend on Sea3 Years Ago
- Monday Seller Success with eBay: Purrfect Cat Gifts3 Years Ago
- One love, one heart on Ipswich’s high street3 Years Ago
- Monday Seller Success with eBay: Hampers by Lauren3 Years Ago
- Good graces in Bristol and Bath3 Years Ago
- Monday Seller Success with eBay: Top Dog3 Years Ago
- Weigh to go in Northwich3 Years Ago
- Monday Seller Success with eBay: Handpicked Penrith3 Years Ago
- Holy cow in Westmorland3 Years Ago
- Monday Seller Success with eBay: The game is afoot3 Years Ago
- All fired up and ready to go in Gerrards Cross3 Years Ago
- Monday Seller Success with eBay: Meteorite Man3 Years Ago
- Dorset's Ice Cream Appreciation Society3 Years Ago
- Monday Seller Success Story with eBay: Giddy Goats Toys3 Years Ago
- SmallBiz100 celebrated at the Blue Tie Event3 Years Ago
- Why apply to be a #SmallBiz100 2022?3 Years Ago
- From field to fork – making the most of Cheshire’s local produce4 Years Ago
- Sustainable living with BLANC4 Years Ago
- Pizza power4 Years Ago
- In the good books4 Years Ago
- From babygrows to beer kits4 Years Ago
- Smile and say cheese4 Years Ago
- The perfect planner for when you didn’t plan for this4 Years Ago
- Why apply to be a #SmallBiz100 2021?4 Years Ago
- Feeling lighter than air at The Float Spa5 Years Ago
- At the cutting edge of local community5 Years Ago
- Sewing the seeds of success in Scotland5 Years Ago
- Joco's leap of faith pays off5 Years Ago
- No messing around! How Tom Foolery Coffee Company pivoted during the pandemic5 Years Ago
- How Mandira’s Kitchen has its eye on spicing up your freezer5 Years Ago
- Wild about keeping it local and healthy in Bristol5 Years Ago
- Award winning small business announced at Blue Tie celebration5 Years Ago
- Free leadership training for SME leaders delivered by leading Business Schools5 Years Ago
- Six things you can do in your business right now5 Years Ago
- How can my employees return to work safely and legally after Covid-19?5 Years Ago
- What is it really like being a #SmallBiz100? – Stamptastic spill the beans5 Years Ago
- Why apply to be a #SmallBiz100 2020?5 Years Ago
- Why embracing technology should be your New Year resolution5 Years Ago
- Starting a new business: financial tips for start ups6 Years Ago
- A helpful guide to data protection for small businesses6 Years Ago
- From architect to artisan at the Dumfries Larder6 Years Ago
- Putting down new Roots in Abergele6 Years Ago
- How Amazon is helping one woman tackle taboos and period poverty6 Years Ago
- Creating a community: What it means to be a small business6 Years Ago
- Building an enabling bridge, brick by brick6 Years Ago
- Get ready to rock with Rockit6 Years Ago
- How to create an event for Small Business Saturday UK6 Years Ago
- Jampacked with passion: the local cinema that’s giving back6 Years Ago
- Celebrating the North East’s cycle stars6 Years Ago
- Don’t know what to write about? 9 ideas for your next business newsletter, blog or social media post6 Years Ago
- Take a butcher’s at the first of the #SmallBiz100 20196 Years Ago
- 7 essential growth tips that small businesses need to know6 Years Ago
- Making a great first impression: photography & small business6 Years Ago
- Strength in numbers6 Years Ago
- How to choose the right pricing strategy for your business6 Years Ago
- How taking matters into her own hands led to huge success for Revival Retro6 Years Ago
- 5 content ideas every small business needs6 Years Ago
- The Flour Pot Bakery's secret to success6 Years Ago
- How to harness the power of Instagram and drive your business forward - the GB Labels way6 Years Ago
- Making Tax Digital is here! What does it mean for your business?6 Years Ago
- How we should champion success for International Women's Day6 Years Ago
- Step aside Mystery Shopper scheme - hello new Public Procurement Review Service!6 Years Ago
- The top three causes of entrepreneur burnout and how to avoid it6 Years Ago
- Get a great digital ad for your business for just £50, and help tomorrow’s entrepreneurs learn with iDEA!6 Years Ago
- Badge Your Brilliance with iDEA6 Years Ago
- How to make your Christmas the most successful yet!7 Years Ago
- Life in the fast Laine7 Years Ago
- Small businesses shine at launch of Silver iDEA Award St James's Palace7 Years Ago
- Local and sustainable is winning formula for SmallBiz100 Hays Hampers7 Years Ago
- Red Herring Games – Case Study7 Years Ago
- Keeping Up With The Tylers: How To Move With The Times7 Years Ago
- Making our own kind of music at the Blue Tie Ball7 Years Ago
- How to guest blog (and look like you know what you’re doing)7 Years Ago
- How to market your small business on a budget7 Years Ago
- Top summer marketing tips!7 Years Ago
- Purposely: embedding purpose into the heart of your small business7 Years Ago
- A ‘Dog Day Afternoon’ for Britain’s small businesses7 Years Ago
- Five ways to make your business successful in five years!7 Years Ago
- SmallBiz100 Mooch revive the local high street7 Years Ago
- Why apply to be a SmallBiz100 2018?7 Years Ago
- SmallBiz100 Julu on design, manufacturing, and building an online business with friends7 Years Ago
- Small Business Champion Series From Rich Brady ... Setting Business Goals7 Years Ago
- SmallBiz100 Techsixtyfour on how to successfully build an online business7 Years Ago
- SmallBiz100 Frequently Asked Questions7 Years Ago
- Small Business Champion Series from Rich Brady...Putting the Family into Family Business7 Years Ago
- Exporting - not just for the big!7 Years Ago
- Can Giving Really Be Good for a Small Business? Spoiler: Yes!7 Years Ago
- Let's get organised....7 Years Ago
- Is your business leaking money?7 Years Ago
- Podcasting - The Ultimate How-To Guide - Part 27 Years Ago
- Setting BIG goals – why do it and how to go about it7 Years Ago
- International Women's Day 20187 Years Ago
- 9 tips for Business Success - it's all about love.7 Years Ago
- Demystifying LinkedIn for Small Businesses7 Years Ago
- 10 Top Money Tips for Small Businesses7 Years Ago
- Organising a Small Business Event - Tips from the Experts7 Years Ago
- 12 Top Tips for Micro-businesses7 Years Ago
- ACCA on board the Small Business Saturday Bus Tour8 Years Ago
- Is Britain Becoming a Cashless Society?8 Years Ago
- Small Business Spotlight - How Technology Can Help Small Businesses8 Years Ago
- Taking Your Business Beyond the High Street8 Years Ago
- 5 Ideas to Improve your Time Management8 Years Ago
- The Small Business Saturday Bus Tour launches across the UK for its fifth year!8 Years Ago
- Making the most of Small Business Saturday9 Years Ago
- Why I applied to Small Biz 100: Crafty Revolution tells all10 Years Ago