Your Essential Guide to Managing Your Small Business Accounts
Despite the looming troubles about government disagreements and Brexit, it’s a very positive sign that the British people are taking control of their own lives and business ventures; more and more people are deciding to try it on their own and start their own enterprise – the number of small businesses has been on the rise, reaching 4.5 million. That’s not just a sign of entrepreneurial spirit, it’s also a great positive aspect for economic growth.
If you’re one of those who try to do it independently, you should be congratulated. No doubt you’re having trouble managing it all, but it’s worth it. The key is to make sure you get the basics correct – to build that all-important foundation. Here’s your essential guide to managing your small business accounts.
Keeping the books
It’s often a time-consuming job and it’s not exactly the most exciting one, but it’s a very important one nevertheless. Luckily there’s plenty of technology available to help you with this – from the simple solutions like Microsoft Excel or similar programs, to advanced applications that specialise in accounting. However you handle it, make sure it’s done well, and have the discipline to do it regularly. Don’t delay or postpone it.
Your annual accounts
Once a year, you need to summarise all your transactions and the financial results in financial statements. These performance records are not only important for your own gain, they are also a requirement by the government for taxation purposes. Once again, software should be able to help you with this.
- Corporate income tax – this is 20% up to the £300,000 mark, slightly higher above that.
- Self-assessed income tax – This unfortunately requires forms; read them carefully.
- Income tax rates – There are some interesting allowances here; do the research.
If your annual turnover in sales is more than £79,000, you should register for VAT. Here’s a hint: it’s good to register even if your turnover doesn’t amount to this number, as you can then charge 20% more and you can easily expand your sales.
Get informed about income tax and national insurance; depending on the number of employees you have, it can get complicated.
Basic bookkeeping is not that hard – it requires a simple system and it requires some time, but a dedicated manager should have no trouble managing that. The financial planning, however, is a different matter; and that’s where professional accountants such as the accountants in Glasgow from Wylie & Bisset come in. Not only do they save you plenty of time, they also have invaluable advice to offer on a variety of aspects that will allow you to grow your business. It’s a matter of being smart, after all, and focusing your energy on what is truly important: your enterprise and its success.