Small Business Saturday Blog

Quick guide to accounting

Wednesday, September 02 at 16:54Accounting | Quick Guide | Small Business | Toolkit | Top Tips

Accounting Tips for Small Businesses


When running or setting up a small business, keeping the books in order is not only important for the growth, but required for a healthy business. To help you learn the ropes, Leaman Mattei Accountants have given us some great starting points. 


Managing cashflow
Forecast your cash flow to identify shortfalls early and build in a contingency

Consider monthly standing orders and direct debits for regular cash flow

Maintain an honest and open relationship with your customers

Establish clear credit control procedures, make sure your customers understand them, and be seen to implement them firmly and consistently

Check credit references before offering credit terms, do not extend credit limits without good reason

Set aside future tax liabilities in a separate deposit account

Working from home
Self-employed
You can claim costs in your accounts that are incurred wholly and exclusively for the purpose of your business. If you don't maintain a separate office, you can claim a reasonable proportion of those household running costs that represent the space and time in which your office operation occupies your home. This includes a proportion of your rent, council tax and water rates. Alternatively, you can make a claim for a fixed rate deduction from your profits.

Employees
You can only claim the additional variable expenses incurred by working at home. These costs amount to the increased energy needed to heat and light your property for longer, and the extra water used if that is metered. You can also claim the cost of business related telephone calls.

Things to consider when starting a new business
Always keep your long-term goals in mind. Running your business more cost-effectively can be achieved only if you have the vision to project your goals into the future

Cash shortages, lack of a solid business plan to guide the business, and steady decreases in profitability are all warning signs that a business is heading towards a potential financial crisis

It is crucial to evaluate your business’ structure and performance before it manifests these danger signals

Improve your profitability by analysing all the aspects of your business


Missed deadlines = penalties + interest
Key dates to remember

Submission of statutory accounts
-> 9 months after the year end

Submission of corporation tax return
-> 12 months after the year end

Submission of VAT returns
-> 1 month and 7 days after the period end

Payment of corporation tax
-> 9 months and 1 day after the year end

Payment of VAT
->BACS 1 month & 7 days after the period end;
->Direct Debit 1 month & 11 days after the period end





A good accountant could save you money and advise you throughout the life cycle of your business on a wide range of issues. For more information on Leaman Mattei visit their website.


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