When you own a small business, you must understand the basis of your business model and manage to account appropriately. Accounting, especially for small businesses, is the most critical area that the business owners need to dominate for its success. It helps in growing the business effectively and empower you to take the right steps at the best time.
So let’s check a few steps on how do we make our accounting and taxation right –
Get the basics right
Every start-up business will have the best of ideas, creativity and entrepreneurial spirit, but what they lack is the control and insights into the financial matters. To understand the basics of accounting and tax, you need not be from the financial background or excel in your maths. All you need to understand is the financials of your business. Keep a record of all outflow and inflow of the cash that you have invested in your start-up. Some of the basic record-keeping that you need to invest your time on are:
- Ensure to register your business with HMRC or your company with Companies House
- Open a business bank account
- Set up your financial record-keeping system
Keep a record of cash flow
Ensure that you have a budget planning and you are working accordingly. Keep a check on who you are extending the credit. Be sure to have enough money to pay your bills and VAT return is up to date. You should have control of the cash flow. Keep an account for financial and the non-financials usage of assets and stocks. Anglia Tax Help assures to maintain your books every month and annually, and tailor the service based on your needs. We ensure to provide the best quality bookkeeping service for your account preparation.
And this point is the key tip. The legislative regulations for financial submission could change every 12 months. But you need to ensure that you are compliant to all the legislative responsibility or it is best to look for accounting data that automatically gets updated. This can be used to not just comply with regulations, it helps to categorise income and expenditure to provide the right business insights.
Anglia Tax Help understands that it takes time to understand your compliance responsibilities and act accordingly. We can help you with the payroll, tax, VAT and any changes in business legislation for your business.
Assure to have right VAT scheme
Regardless of your business model, the first step is to check if your business is below or above the current threshold to be VAT registered. VAT calculation is done with the date sales or purchase invoice. VAT returns and payments are due quarterly. You should add the VAT percentage to your sales invoice amount and keep this amount aside when the customer pays the bills. It helps in reclaiming the VAT you paid on business-related purchases or expenses you incur. You must also pay the net amount of the two to HMRC.
Contact Anglia Tax Help if you are not sure how to deal with VAT billing scheme. We will ensure to help you with the VAT invoicing and accounting that will benefit your business cash flow and the best method of getting VAT paid for your purchases to reclaim from HMRC. Contact Anglia Tax Help today for a complete range of VAT return services or Payroll services.