Small Business Saturday Blog

Quick guide to accounting

Wednesday, September 02 at 16:54
Accounting | 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 cashflowForecast your cash flow to identify shortfalls early and build in a contingencyConsider monthly standing orders and direct debits for regular cash flowMaintain an honest and open relationship with your customersEstablish clear credit control procedures, make sure your customers understand them, and be seen to implement them firmly and consistentlyCheck credit references before offering credit terms, do not extend credit limits without good reasonSet aside future tax liabilities in a separate deposit accountWorking from homeSelf-employedYou 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.EmployeesYou 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 businessAlways 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 futureCash 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 crisisIt is crucial to evaluate your business’ structure and performance before it manifests these danger signalsImprove your profitability by analysing all the aspects of your businessMissed deadlines = penalties + interestKey dates to rememberSubmission of statutory accounts-> 9 months after the year endSubmission of corporation tax return-> 12 months after the year endSubmission of VAT returns-> 1 month and 7 days after the period endPayment of corporation tax-> 9 months and 1 day after the year endPayment of VAT->BACS 1 month & 7 days after the period end;->Direct Debit 1 month & 11 days after the period endA 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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