23 Jan 3 common business mistakes a good accountant can help you to avoid
Running a small business here in the UK in 2017 is no easy task, though with the right help, it can be both lucrative and exciting. Nonetheless, there is a good reason why so many of these fail in the first year. Here we look at three easily made mistakes that can be avoided if you enlist the services of a good accountant sooner rather than later.
It can take years for your small business to start making a clear profit so you really need to take this into account when looking at your funding resources. With that in mind, you still need to pay yourself a living wage and your accountant will be able to show you how to do this in the most tax-efficient way possible. Cash flow and savings should be carefully accounted for and once the money starts to roll in, your accountant will also be able to advise on how best to invest these funds.
Filing your tax
You may have some 18 months before you need to pay that all-important corporation tax but still wait until month 17 before finding the money. Your accountant is there to help deal with this and other financial calendar events including VAT and Self-Assessment issues. There should also be a balance between your personal and corporation tax that needs to be part and parcel of the services that your accountant provides.
Financial insight – or lack of
Too many small business owners throw themselves into the marketing or production side of their brand and often they lose track of where the money is actually going. Your bank balance isn’t necessarily telling the whole story. Your accountant will be able to help you to identify the best way to do this. That may involve using the latest cloud-based software packages or even teaching you a few proven processes that can help you accurately assess your capital without too much effort.
So there you have it, three common issues that can often spell the end of a poorly run small business. We suggest that you enlist the services of an accountant before any of these problems appear: contact us today to find out more.