For many smaller businesses keeping financial records can be time consuming especially if there are many transactions during a month but by using accounting software record keeping can be made much simpler.
There are many bookkeeping software programs available. Several of them offer customers the ability to customise them according to their needs. This allows you to have a simpler or more complex system for payroll or inventory, as required. Before choosing what bookkeeping software would best suit your business, it is important to consider who the bookkeeping records are for. For example, will they be used by the management of the company or an external accountant as the detail that is needed may be different. Another consideration is the number of transactions there will be as some software is more suited to deal with a larger volume of transactions.
The benefits of using accounting software that most companies find is that it is easy to keep track of the financial state of the company and straightforward to enter transactions into the software either at the end of the day or as they occur. Reports can usually be generated detailing how the company is performing so that action can be taken immediately if profits are falling, or new investments can be made if the company is performing well.
If you have a small business you may wonder if it’s really worth paying for an accountant as they aren’t cheap. However, a good accountant should always be able to save your business more than they cost you.
Accountants usually are knowledgeable about new procedures and tax rules and can help you navigate through the very complex financial world of owning a business.
Most accountants can handle all areas of your financial matters for you, be it payroll and pension payments to book keeping and tax returns.
A valuable accountant will be able to guide your business into being tax efficient and help you really make the most of your business budget.
Generally you would send your account all your receipts and invoicing information and they will collate the data ready to submit for tax purposes. They would then advise you what needs to be paid to HMRC and adviser when your next accounts need to be ready by. The account can also advise on what things within your business are tax deductible.
Even a small one man band really can benefit from a great accountant so do your research and spend time finding the right accountant for your business.
As the financial year has now ended, you are able to submit your tax returns online. Paper copies need to be submitted by October whereas if you are doing it online you will have until January 2023 to file your return. If you have paid tax and think you may be due a rebate, then you may wish to get your tax return filed as soon as possible in order to enable you to claim the money back.
Doing your tax return yourself may mean you are able to save a bit of money on accountancy fees but you do need to ensure that you know what you are doing and do it correctly. Mistakes could be very costly and even mean you end up in trouble with HMRC.
If your business is very straight forward and you have the same incomings and outgoings pretty much every month then you may decide to do it yourself. If however your business is a little more complex then you should seriously consider using an accountant. A good accountant can often give you advise and discuss things you can claim for that you were not aware of. They often can pay for themselves in the money they can save you in tax.
The main roles of an accountant are to record, process, analyse and prepare various financial and business-related reports. So, unlike a business finance manager who is focussed on the management of money an accountant is more concerned with record-keeping.
The skills and qualifications that are necessary for accountants are similar to those who work in the finance department and in some cases the two roles are undertaken by the same person. Accountants need to have a good grasp of accounting rules, tax and regulatory issues and demonstrate the ability to work with numbers and now also need a good understanding of accounting software. It is important at this point to recognise the difference between an accountant and a chartered accountant. A chartered accountant must be certified by a nationally recognised body. However, someone working as an accountant does not necessarily need to have these qualifications but for those wanting to progress in this field these formal certifications are essential.
Most accountants would be expected to have a graduate degree in a mathematical subject such as business, finance or economics. Additional courses covering accounting principles and tax law would be beneficial. Postgraduate certifications in these fields will be of particular benefit and add even more merit to the CV of an accountant.
If you are trying to manage more than one business or even if you are self employed and employed, you may find it hard to get the balance right. It makes sense that the job that pays the most is where you should be spending most of your time, but this is not always the case.
If you have two or more of your own businesses, you may struggle to split your time fairly between them all. Often as the business grows it can get to a point where you find that you need to employ or outsource some of the work to other people to free up some of your time. It can be hard letting someone else in to help you in your business as you may worry that they will not do it like you do or if they can be trusted but this is something that often you need to overcome.
It can be useful to sometimes segregate your days so that you work full days on one business and then others on your other business. This will allow you to really get in to the task in hand rather than having to keep dipping in and out.