The life of a business owner is filled with ups and downs, and while this year may have seemed to have quite a few downs, there’s still time to round of these twelve months on an upward trajectory with our accounting top tips that will help you increase your potential for success while avoiding unnecessary mistakes…
- Separate your personal and business finances:
Becoming a small business owner will inevitably bring about a few changes to your everyday life. As an employee, your income and other funds will be held in a personal account, whereas being a company owner will bring business-based finances into the mix. Opening a new bank account for your business transactions is essential for organisation and preventing an abundance of stress when the tax deadline comes around. Every financial aspect of running a small business will be more difficult if you fail to separate your accounts. Invoicing, tax forms and bookkeeping will all become a bit of a nightmare if you have to search through hundreds of personal transactions to find a particular piece of business.
- Maintain neat and accurate accounts:
When it comes to the accounts of your business, untidiness can have serious ramifications. Efficient bookkeeping not only makes day-to-day tasks more fluent and easier to handle, but larger-scale financial tasks will also be less stressful to organise. If you’re a one-man operation or smaller company, you may well manage your finances in-house. Doing so may save you a small amount of money, but if organisation isn’t your forte, you’ll soon have a problem.
- Recruit a tax accountant for small business:
Small businesses tend to work with a tighter budget and are less inclined to pay for additional services. But in reality, the assistance of a tax accountant for small business can save you money in the long run. A small business accountant has the skills and know-how to organise your accounts efficiently, not to mention the familiarity with small companies and all of the issues that can occur. While your tax accountant for small business is hard at work, you have more free time to spend on other crucial aspects of running a company.
- Be aware of tax deadlines and stick to them:
A looming tax deadline can be quite stressful, to say the least! Tax forms that have been filled out incorrectly or missed the deadline altogether will result in late fees and fines, neither of which are good news for a small business with a tight budget. Also, the longer it takes you to send your tax return (after deadline), the more it costs, due to the delight of daily charges. Again, this is where a tax accountant for small business comes in handy. They certainly won’t miss the deadline and you can be sure that your tax return will arrive at HMRC as a well-organised, accurate depiction of the accounts of your business.
- Embrace accounting software:
Accounting software provides the ideal digital tool to keep your incomings, outgoings and taxes organised. The user-friendly nature of the software is also perfect for business owners who are a little less tech-savvy. If you already have a small business accountant, using accounting software in tandem is an ideal way to save them the job of tidying up your mess, leaving them more free time to focus on other financial aspects that could potentially increase your profits.
These accounting tips aren’t complicated and don’t require a lot of effort to take on board, but they are no less vital to the success of your business. The benefits of organised books, the genius of accounting software and the peace of mind provided by a small business accountant are all points you should consider and apply to your life as a business owner.
If you feel that these accounting top tips aren’t enough and you need more accountancy support then do not delay in contacting us at DNA Accountants, we are here to make sure you get on with what you do best, while we take care of the boring stuff. We can also make sure your money is working for you by assessing your tax efficiency. Get in touch and we’ll make your income work smarter for you.