1. STAY ORGANISED It really is key to understanding your business and it is much easier if you start from day one (or as early as possible). Record keeping and bookkeeping can eat away at your time so it’s important not to put it off or let it pile up in the background.
You must keep copies of all of your invoices and receipts but how you keep your records is entirely up to you, some keep a book of ins and outs, a simple spreadsheet is fine but come 2023 you will need to use Making Tax Digital compliant software (more on this tomorrow).
If you’re not using a bookkeeper/accountant, you should set aside some dedicated time (no distractions!) to tackle this weekly/monthly/quarterly depending on the level of transactions your business has.
2. PREPARE FOR YOUR TAX LIABILTIY
With filing and payment deadlines for both Self-Assessment and Companies nine months after the end of the tax/accounting year, it can be easy to forget to prepare for that liability in the year the profit made.
It’s a tough mountain to climb if your using the next year’s profits to pay for the previous year’s tax and a situation that can quickly snowball out of control if you find your profits are increasing each year.
If you’re following our number one tip to stay organised, you should be able to forecast your liability throughout the year and be confident that you’ve set enough aside. Of course, if you’re not sure, seek some professional advice.
3. WORK WITH A LIKE-MINDED ACCOUNTANT Sounds silly but working with a likeminded accountant can transform your business. When appointing an accountant, you should vet them in the same way you would when hiring an employee – do they fit with your business ethos and culture?
We believe the relationship you have with your accountant isn’t a once a year thing, you should be having regular contact even if it is just to check in and say hello!
Conversations with your accountant shouldn’t be preceded with dread or fear of being told off for doing something wrong. Find someone who you can really level with and you believe has your business’ best interests at heart, so you know your business is in the best hands to grow!
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Equal Accountancy Ltd offers Accountancy and Bookkeeping services in Hemel Hempstead and surrounding areas across Herts, Beds and Bucks. We offer a range of services for Limited Companies, Self-Employed individuals and Landlords including Year End Accounts, Corporation Tax returns, Self-Assessment Tax returns, Payroll services, VAT returns, Bookkeeping and Company Secretarial. Get in touch today for a free, non-obligatory quote for your business needs.