Businesses in Gloucestershire have bookkeeping for Making Tax Digital decisions to make.
Bookkeeping for businesses – DIY or outsource?
As a business grows, you’ll have less time to spend on the accounts because you’ll be busier dealing with other matters. This may be a good time to get support. You could bring in your own accounts assistant or bookkeeper, or outsource your financial management to your accountant.
The right option will depend on how much accounting you can do, or want to do, and what you can afford to outsource to an accountant.
The important thing is not to get behind with your accounts – as you grow, there are more regulations to adhere to, like VAT registration and reporting like Making Tax Digital.
When starting a new business, accountancy support is often seen as an expense that can be “done without” during the first year of trading.
But this decision can be a false economy, as an accountant should work with you to develop a good understanding of your business. Your accountant will go on the journey with you and guide you as a trusted advisor so that you can operate in a tax-efficient manner, while working within budgets.
Think about whether the accountant or bookkeeper can serve your needs now and into the future.
Maybe you need advice on business strategy – such as mergers and acquisitions and attracting investors – or basic book-keeping services to free up your own time.
Or businesses can buy accounting software
Online cloud technology has helped to make accounting software easy to use wherever you are – and cheap. Some accounting software for small businesses costs less than £30 per month, although fees rise when more workers use it.
Tracking progress through an accounting system keeps the business owner in charge of their income, costs, profits and cash flow.
Fir example a new business could be making profitable sales but without robust cash flow control could soon run out of money and find themselves in a fix.
Using accounting software to manage your business finances can be quicker and more efficient than keeping a record of expenses and invoices on a spreadsheet or paper.
There are apps that use algorithms that allow you to take a picture of a receipt and submit it for processing in the cloud. Data from the receipt, along with a PDF of the receipt, is then entered into the accounting system. This saves significant time on book-keeping tasks, allowing you to spend more time building your business. We know this because we use it too.
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 firstname.lastname@example.org or click the Contact Us buttonor please fill the form at the bottom of the contact us page.