Bookkeeping and Making Tax Digital help and advice for Glos Businesses in Cheltenham, Cotswolds, Stroud and Tewkesbury by ESB.
Getting on top of money coming in and out of a business – and complying with regulatory and tax rules – can be challenging. Nick Huber outlines some basic steps that can ease the burden for small business owners.
Starting your own business can be exciting, scary and exhausting. But financial paperwork – your company accounts, tax and payroll – can feel like a chore. It’s easy to neglect, even though doing so could make the difference between your business surviving and thriving, or collapsing due to a cash flow shortage.
Accounting software can help new businesses manage their finances. But according to research published in 2017, around one in six (16 per cent) small and medium-sized businesses in the UK still uses a shoebox for their bookkeeping.
The research by the UK200 Group, an association of UK chartered accountancy and law firms, also found that 23 per cent of small and medium sized businesses still use manual records.
That will soon have to change. The Government plans to make the tax system digital by 2020.
By then all but the smallest businesses must keep digital records and submit digital VAT returns quarterly. The following are all areas to consider if you’re looking to stay on top of your accounts.
First, write a business plan.
This should include an executive summary (a summary of your business and what it’s trying to achieve), an analysis of your competitors and a financial section that includes an income statement (how your business will generate money each year) and a cash flow statement (how much money will be needed to meet your business obligations).
A business plan doesn’t have to be long, complicated or onerous to produce. Without the formality of this pre launch activity, any new business could be in danger of going off track before it’s even started.”
If you don’t currently use software, or your software won’t be MTD-compatible, you’ll need an adviser who can file your VAT returns on your behalf.
Please talk to us at ESB Accountancy to discuss how your business can comply with the new laws – with several decades of financial experience here in Gloucestershire you can either ring us now on – email us on email@example.com or click the Contact Us buttonor please fill the form at the bottom of the contact us page.