What are the best tricks for Small Business Accounting? | More Group Experts Advice

Overview

Small businesses are on the rise. In the UK at the end of 2017 there were 5.7 million Small Medium Enterprises (SME’s) equating to over 99% of all UK business. If we break this down further, in 2016 96% (5.4 million) of these SME’s were micro-businesses (0-9 employees).

As the figures clearly show, small businesses are very popular. Therefore, we know there are loads of you out there who will benefit from these tips about accounting for small business owners!

• Be organised with book keeping

Bookkeeping involves the organisation and processing of your business records. It encompasses payments, invoices, cash flow, profit and loss, balance sheets, forecasts and future projections. These records form the backbone of a business, so keeping them up to date and accurate is essential to keep your business afloat. Additionally, business owners are required to keep these records, which have the potential to be audited, for a minimum of 6 years.

• Be aware of and meet government deadlines for taxes and accounts

Looming tax and account deadlines are stressful for businesses. Research these dates at the beginning of the year and put them in your calendar. To stay on top of these deadlines you should be proactive and complete the paperwork in advance. By being organised you can reduce stress and the risk of running into unexpected fees and fines.

•        Have a contingency plan and cash reserve

Most businesses will be able to recall sluggish periods in their business cycles. The economy is unpredictable, and you usually don’t need to feel disheartened by these slow periods, however, it is important to plan for them. Most financial analysists recommend having a cash reserve to cover at least three months of basic operating costs, however, the more you can afford to put to one side the better!

•  Hire an account specialist

As a business owner, you may find you simply do not have the time or energy to research and complete all the procedures involved. Do you know what are the services comes under the tax and accounting? Professional tax and accounting services are a game changer when it comes to running a small business. Whilst many business owners can be reluctant to spend money on a small business accountant, we believe that this investment saves many businesses money in the long run.

Accountants have the expertise to organise your accounts accurately and efficiently. This helps reduce the chance of incurring fees or fines for incorrect information. Experts can also use their knowledge to structure your business to help mitigate tax liability. When a professional takes care of your business formalities, you will also find you have more time to spend on income generating business

tasks, win-win!

An accountant will be able to:

•           Ensure your business is legally compliant
•           Inform you of tax changes and mitigate your tax liability
•           Prepare and submit annual statements
•           Maintain business records
•           Set up and handle your payroll
•           Assist with finance applications
•           Advice you on business plans and future forecasts
•           Educate you on some of these processes.  If you are wondering to understand how actually        accountant can help you in your start up, you should read this blog once.

•      If you decide not to hire an accountant, download some good accounting software

In this new digital age, you can download software to help you organise your accounts. Software should make the task of accounting more straightforward but could be more difficult for those who aren’t familiar with technology. Having digital accounts is more convenient for storing, organising and accessing files – and it is better for the environment as it saves paper! To fully benefit from this software you must pay, so it might be worth weighing up the benefits of this versus a chartered accountant before proceeding.

If you own a small business, you probably find your business formalities are a nuisance. A certified accountant can help you with countless administrative business procedures - including everything that’s been mentioned in this blog. They are trained to make your life easier by helping you to build and maintain a robust business structure.

Working with an accountant is not the big deal some people make it out to be. You don’t have to commit to hiring an accountant full time, you can try hiring one for a set period to assess whether their services will be beneficial to your business. Accountants are also great advisors to help you learn about the procedures you need to undertake as a business owner. You can also get the advise for getting good feedback and trust for your start up.

The More Group Accountants (best accountancy company in London) will fill you with confidence, you should be able to relax knowing that your accounts are being expertly handled. Many people find less stress leads to more energy, which in turn favours more creativity and enthusiasm leading to bigger and better business ideas.