If you are self-employed and an owner of a small business, you must congratulate yourself first for diving into this exciting adventure. It can be a great leap forward as a professional. However, if you are new to it, the accounting and taxation part can look like a nightmare in the beginning. But if you are organized from the start and take help from expert accountants, you can get the hang of it in no time.
Here are the steps that can help you organize your accounts for your small business!
Keep A Record of All Your Expenses
Keeping a record of all the expenses incurred by your business is very important. If you lose track of it initially, you might miss out on some significant expenditure. Therefore, it is a good idea to keep your bank account for business purposes separate. It will help in easy tracking of business expenditure.
You must note that all the expenditure made only for your business can be counted as a business expense. This includes office furniture, laptops, computers, mobile phones for business purposes, uniforms, industrial equipment, and much more.
You can take the help of accounting software to streamline your expenses. Alternatively, you can get in touch with accounting experts from the Cloud Co group who can help you with hacks to maintain a proper record of your expenses. Being organized with the accounts from the beginning will help you go a long way!
Understand The Taxation Structure Applicable To You
Depending on the nature and the size of your business, you need to adhere to tax obligations. No matter which category you will be in, you will be required to file a self-assessment every year with the HMRC. The deadline for the self-assessment is January 31, and this is followed by the deadline of April 5, which is the tax year-end.
With the help of the self-assessment, the HMRC tries to assess the total amount of income tax as well as national insurance; you will pay in a given financial year.
Try To Get A Funding
There are numerous funding options that you can avail of. These can be in the form of government support for new businesses, loans, grants, or other schemes to promote a startup. Even a small financial help can be an added advantage and help kick off your business in no time. So, it is always good to keep an eye on the latest news in the startup world.
Plan a Payment Structure For Yourself
Paying yourself is an exciting part of owning a business. By doing this efficiently, you can save a lot of taxes. For a limited company, the best way to save taxes is to take your salary in the form of dividends and a salary, which is below the National insurance threshold relevant to you.
It also helps to have a separate business account and paying yourself a salary in your personal account. You can get paid as the director of the company in the same way as any other employee. For this, you need to establish a payroll structure so that your salary can be counted as a company expense, and you can save taxes on that. So, once your bookkeeping and expenses are organized, you can decide how much salary you need to pay yourself. This can be a helpful exercise for the health of your business.
Establish A Payroll Structure
As mentioned above, if you decide to pay yourself a salary as a director, it is important that you set up an efficient payroll system. This system needs to be compliant with the RTI or the Real-Time Information so that you are in coherence with the HMRC.
If this process seems too complicated, you can always get in touch with an expert financial accountant to help you set up the payroll structure and organize your finances.
Find A Good Accountant
Lastly, you can ease off all your financial and accounting related burdens by hiring a good accountant. They can streamline your finances and also keep track of all the important dates. Missing out tax deadlines can lead to huge penalties. Therefore, hiring an efficient financial expert can help you go a long way. It will take off all your accounting load and let you focus on business expansion. Cloud Co Group understands the importance of streamlining your accounts so we can help you with all your tax-related matters. All you need to do is get in touch with us, and we will be happy to offer you some valuable advice related to your business.
So, have you made up your mind about hiring an accountant? If not, give us a call, and we will be happy to provide you with a free consultation to help you!