Struggling with Small Business Accounting? Check Out these Steps to Simplify
Not a secret anymore, COVID-19 has turned our lives upside down for the better part of last and partially this year.
To cushion this, we reach out to our clients as regularly as possible. It helps us get engrained in their business and define our understanding of their way of work.
Picture this, close to half a million people try to set up businesses every year. For various reasons, circa a third are believed to fail.
Grasping finances can help avoid this jinx. Still, accounting for small businesses is a vital aspect to overcome struggles.
- Accounting Basics
From the start, deep insight into financials is key to any business success. Even if you lack a financial background, getting accounting basics right will work well for your small business.
Wondering how? It is where professionals from Ernest & Co Accountants come in handy.
- Cash flow is Key!
Today, money is a necessity for any small business; talk of unending bills and payrolls. Take the edge off by prompt VAT returns, knowing who you owe and who owes the business money at all times.
It helps to proper manage your business cash flow.
It indeed takes time to understand the laws of business. It involves payrolls, tax, VAT, RTI and any future business legislation changes.
Register your business with HMRC, set up a financial record-keeping system, have a business bank account as all these are a requirement by law.
- Understand the Right VAT for Your Business
The HMRC calls for the prompt filing of returns for every UK registered business. Also, don’t be too late in registering for VAT.
It can be through:
- Standard VAT
- VAT Cash Accounting
- Flat Rate Scheme (Invoice and Cash-based).
- Understand Your Market
It is something we are proud of at Ernest & Co Accountants; knowing and understanding our customers. We believe it’s an essential aspect of any business.
Use your accounting data wisely to ensure mutual profitability between yourself and customers.
- Have a Target
For any business to thrive, there need to be realistic and measurable goals. Understand your KPI’s and how to measure them.
- Get the Right Accounting Software
For a smooth running of operations, it is crucial for any business to choose the right accounting software. It is achieved by putting into consideration usability factors like; multi-user access, mobile access and others.
In summary, even though it’s not a walk in the park, the small business sector is the life board of the UK economy.
Are you a small business owner struggling with accounting? Call us today!