03 Dec 3 accountancy tips for small business owners
Small businesses are the very backbone of the UK’s economy. For example, in 2017 over 99% of businesses in the UK were small to mid sized companies (SMEs) with total employees of 249 or less.
Although there is so much potential in the UK for success in business, accountancy errors and financial inefficiencies can lead to serious problems for small business owners. Staying on top of business accounting means setting up a record keeping routine and the following simple tips offer some guidelines to ensure you don’t fall foul of HMRC or Companies House in the near future.
1. Keep your business and personal finances separate
Owning your own business can be complicated if you run all transactions via your personal business account. Tax deadlines and bookkeeping will become problematic if you need to search through all your personal transactions in order to source specific records. Keeping your business finances and personal finances separate from the moment you start your business is essential for efficient record keeping.
2. Maintain accurate accounts
Efficient bookkeeping will make day-to-day operations of your business far easier to manage. Schedule a set amount of time each week to maintain your accounting records. This will ensure invoices are issued on a timely basis and all expenditure is logged regularly so you will be up to date on your business cash flow and payments you expect to receive.
3. Engage a professional accountant
Small business owners often neglect to engage an accountant. There are lots of ways accountancy professionals can help maintain the good health of a business. These range from tax and VAT tips to advice on maintaining business accounts more efficiently. What’s more, your accountant can help ensure your business does not miss any critical accounts deadlines which could incur fines or penalty charges.
There is a lot of great accounting software on the market now, so using cloud-based accountancy services is a real option for any SME and means business owners and management teams can focus on operations, growth, and profitability, rather than constantly worrying about maintaining accounts or complying with government legislation.
Get in touch with SQK Accountancy to learn about our affordable accountancy and VAT services for business.