26 Feb The accounting glossary for new business owners
Are you a new business owner worried about how you’re going to manage your accounts?
Have you been wondering what all those financial terms mean? Take a look at this breakdown of common accounting terms.
After reading this list, you’ll have a better grasp of a few concepts that might prove to be fundamental for making smart business decisions.
Cloud accounting is simply a remote way of accounting. It’s perfect for avoiding the hassle of in-person meetings with accountants and having to deliver paper documents. Instead, with this service, users can access a software application that manages all this for them via the Internet. Some of its benefits include the simplification of financial operations, streamlined access for all employees using the same software, and automated billing processes in real-time.
If you’re starting a business and want to be self-employed, the legal status of your business depends on your financial liability. Being a limited company means you are solely responsible for what happens to your company. There are some advantages, such as tax-free profit under a certain amount, but there are also some restrictions, such as having to file documents for public records.
If you own a small business, you will need to make a list of who works for you. Your payroll should include a breakdown of your employees and how much they should be paid. It also includes how much tax is to be deducted, as well as additional payments such as employee benefits. It’s an essential document in order to declare employee pay details to the HMRC.
Freelance accountants are the most cost-effective way for small businesses to rely on financial expertise without having to hire a full-time accountant. They provide tailored services for each of their clients, such as providing annual accounts, looking after VAT returns, and managing payroll. All of these are invaluable to running your business smoothly, ensuring government compliance, and staying on track to make the best decisions for the future.
To get expert advice and customised accounting services for your business, please contact us at SQK Accountancy today.