Contrary to popular opinion, the life of a Chartered Accountant is far from dull. The stories some people share with us are extraordinary. It’s almost like being a Priest except, for those accountants who are regulated (not all are but that’s a different story) we have a legal obligation, under Money Laundering Rules, to report any financially suspicious behaviour we … [Read more...]
Five Top Tips for Doing Your Own Books
Keeping your books can seem a daunting task. However it is an essential part of running your business. Not only will you have problems later if you ignore your accounts, you’ll be unable to track the progress of your business and put aside money ready for your tax bill at the end of the year. With this in mind here are my top five tips on doing your own … [Read more...]
Five Common Myths About Your Accounts
As an accountant in practice I am often amazed by some of the myths which exist about Accounts and Tax. I am not sure where these myths come from but the sentence usually starts with “my friend down the pub told me ……..” Sounds familiar? Here are my top five accounts and tax myth busters starting with: There are ways to pay no tax if you set up a limited … [Read more...]
Do you know how to produce an invoice?
It might seem simple, but if you’ve never produced an invoice before, how would you know what to include? Should I include the word ‘Invoice’ in big letters at the top? All invoices should be clearly marked with the word ‘invoice’ to make it obvious to the recipient that it is a request for payment. Using sufficiently large letters at the top of the page is a good … [Read more...]
When does my hobby become a business?
Isn’t it great when your hobby and something that you love doing starts to earn you some money. But with the profit comes a stack of officialdom that running a business entails. So how do you know when you have moved from a hobby into actually running a business? Unfortunately there’s no precise definition of what constitutes a business. Equally there’s no amount or … [Read more...]
How to organise your Limited Company costs and expenses
If you operate your business through a Limited Company it's essential that your mindset shifts to thinking of the company as something completely separate to you; it is a separate legal entity recognised in law. In reality this means that you must not treat the Limited Company's money or its bank account as your own; so you need to get organised. Here's how .... Business … [Read more...]
Are you ready to be a director?
Are you ready to be a director? Setting up a limited company is very cheap to do and has become an easy option for many to adopt when starting their own business. Being a director brings with it certain duties and responsibilities. Are you ready for that? Let’s explore what you need to know. Perception All too often the perceived importance of owning a limited company … [Read more...]
Getting the most from your Accountant
Paying your accountant can seem like a big outlay; it’s an overhead that bites into your profits meaning less money for you to take out of the business. It could be that you are paying your accountant to simply make a list of your transactions, upload files to a Cloud Accountancy system or file returns that you could do yourself. There are ways of reducing your … [Read more...]
What does an accountant actually do?
For small businesses, especially new start ups, funds are often tight and any outlay needs to be carefully considered to ensure it is good value for money and the best use of the limited resources available. So all too often the thought of using an accountant is put on the back burner or completely abandoned and the money used elsewhere in the business. Is this really the best … [Read more...]
Top tips for setting up a business when still employed
Check your contract of employment Whilst not wishing to pour cold water on your entrepreneurial aspirations, it is essential that you check your contract of employment prior to commencing any new business. All too often there is a clause contained there that prevents an employee from starting up a business whilst employed. Your employer wants to make sure that you are fully … [Read more...]
What is a dormant company?
I regularly see the term dormant company used incorrectly. In my experience the term is widely misused and misunderstood. Things like: “Can I declare my company dormant?” “I have a few transactions but want to file dormant accounts” So what is a dormant company? The definition of importance is the Companies House one: A company is dormant if it has had no 'significant … [Read more...]
How to pay your corporation tax
Your Reference To be able to pay your corporation tax you'll need your 17-character Corporation Tax payslip reference for the accounting period you're paying. The reference number will be on the pay slip sent to the company by HMRC or you can find it on the company's HMRC online account - 'View account' then 'Accounting period'. HMRC's systems are not intelligent … [Read more...]