Accounting for your small business

Congratulations!  Starting a business is never easy and we know from experience that it takes a lot of perseverance to get to where you are today.  However, as you probably know, small business owners have an endless to-do list, and sorting out finances can be an extremely complicated and long-winded process. In this blog, we will talk you through some of the basics of accountancy for your small business and highlight why you may want to consider outsourcing accounting for your small business.

Open a bank account

After registering your business, you’ll need to open a bank account where you can keep your income.  Setting up a business bank account will help keep records separate and will make your life easier when tax time comes around.  Opening a new bank account can be tricky, especially when your business is new and has just started trading.  Due to laws around transparency and anti-money laundering, it can be difficult to get approved for a business bank account.  If the thought of having to deal with the paperwork that comes with setting up a business bank account leaves you feeling stressed, utilising our services could save you a lot of time and aggravation. 

Determine your tax obligations

The type of tax you pay when running a small business, and the method you pay it, will depend on the structure of your business.  For example, a sole trader’s tax bill will differ from that of a limited company or a partnership.  We could write pages and pages about tax, but if you are struggling to wrap your head around it all, get in touch today!

File bank statements and invoices in order

Make sure that all your bank statements and invoices are present and correct, and in date order.  This also goes for purchases and sales.  It’s important to keep everything separate as it can get very confusing.  For purchase invoices, file them separately for paid and unpaid invoices, and also file alphabetically.  For sales invoices, file them in order of when they need to be paid, this means you can chase them effectively. 

Annual accounts

The yearly financial performance of your business must be presented in a formal record and in a particular format.  This includes costs, assets, sales and amounts owed.  The due date for these reports will depend on whether you operate as a sole trader or a limited company.  If you’re confused by this, don’t panic because we can take care of this for you!

We know that accounting can be a headache, especially for a small business.  We offer a variety of services such as day-to-day bookkeeping, end of year accounts preparation and submission, credit control and cash flow forecasting.  If there is anything else you require then please don’t hesitate to get in touch.