3 Reasons To Manage Your Business Finance Fears With An Accountant

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The wealth of influence money has over one’s emotions is uncanny. It brings you joy as it drifts into your business bank account, sadness when it leaves and fear when you know time is upon you to file your taxes.

It’s an uncomfortable situation for most owners, particularly ones who do it alone and wing it any way they know how in any attempt to hoping nothing terrible will happen to their business financially.

The solution to this problem of fearing your business finances is clear and distinct. It’s a solution that can help you sleep better at night and relieve anxiety over your business financial fears. This can be achieved by appointing a professional, an accountant. Use Google and recommendations to find superior CPA firms, and be selective about finding the accountant that’s right for you and your company. If you’re not entirely convinced that an accountant is what your business yearns for, here are just a few reasons why you should begin your search.

Startup Failure

With a startup business failure rate around 90% within the first few years of opening, there are a few reasons that contribute to this, one of them being poor financial management. Who knew that not keep track of the lifeblood of your business correctly could resort in paving your company’s destiny towards failure? Hiring an accountant will eliminate the possibility of financial management ruining your businesses success.

Expenses

There is a common theme amongst business owners who are approaching the end of the tax year and subsequently panicking searching for receipts of business purchases to increase their overall deductions and reduce the prospect of their business’s earnings being ravaged by the tax people. If your organization is behind with looking after it’s expenses, or you have little to no idea the impact deductions will have on your profit, contacting a professional accountant is a wise choice.

Forecast And Growth

Swimming from month to month spending all that your business earns without little consideration is bound to amount to a cocktail of over-spending which eventually leads to borrowing more money, that could spiral into debt.

Also, you will want your business to expand, and to a degree, this will require money. But if you don’t have a forecast for your finances for the coming months to a year ahead, you’ll have little to no inclination of where your business is heading and what money you have left to invest it back in the company to encourage its growth. An accountant can devise a financial forecast for you to prevent this issue occurring.

Startup business owners take the standpoint of believing it’s smart to do as many business tasks as possible themselves to save money. That’s a great idea if you’re great at most things, but it’s also incredibly time-consuming and takes your attention away from the parts of the business that need your time to flourish.

Weighing up the cost of hiring an accountant to keep your business finances in line is worthwhile for the reasons above. But also because you probably spend a reasonable amount at the moment on a monthly or bi-monthly basis on a cleaner, mechanic, plumber and so on to look after other areas of your life you don’t have the time/expertise/energy to do by yourself, accounting for your business should be no different.

Avoiding Common Self-Assessment Tax Return Mistakes

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The Self Assessment Tax Return (SATR) date is looming; by January 31st, you will need to submit your return online. The deadline for paper tax returns was October 31st. If you are yet to file your Self Assessment Tax Return, make sure you read this post before doing so. We will reveal some of the common mistakes that are made so that you can avoid them. Remember, mistakes when it comes to your tax return can be very costly. If HMRC feel you have made an error on purpose in an attempt to avoid paying tax, you could find yourself in huge trouble. Even if they realize it was a genuine mistake, you could still be fined for being careless. So, it is really important to make sure you avoid the mistakes discussed in this blog post.

Improper record keeping – This is one of the biggest mistakes people make when it comes to their Self-Assessment Tax Return. Throughout the year, they have failed to keep their records, and so this makes the tax return process an extremely difficult one. There are lots of ways you can track expenditure and keep effective records depending on the nature of your business. TripLog is good for businesses with transport, making it easy to track mileage for tax requirements. There are lots of other useful tools of this nature. Moreover, once you send your tax return, you need to keep a hold onto such records encase HMRC come calling. This includes the likes of student loan payments, employee share schemes, invoices, capital gains, bank statements, pension records, expenses records, P11D, P45, records of all sales and takings, and much more.

Missing the deadline – One of the biggest mistakes you can make is missing the deadline. As mentioned, you have until January 31st to submit your application online. If you usually submit paper applications, you have missed the deadline by several months, and, therefore, you will have to do your return online this year. Missing the deadline can result in penalties, meaning you will cost your business unnecessary money.

Claiming expenses that cannot be claimed – A lot of people are unaware of what can and cannot be claimed. There are complex rules in place, which is why it is always a good idea to seek the help of an accountant. If you try to deduct something that cannot actually be claimed for, you will find yourself facing costly penalties.

Failing to declare all capital gains and income – If you do not declare capital gains and all relevant income, you will also face huge penalties. If you have done this on purpose, you may even be prosecuted. Therefore, make sure you include all of the following – employment income, dividends, employee share schemes, capital gains, foreign income, property income, interest, dividends from savings, pension income, and benefits.

Failing to enclose supplementary pages – When it comes to any additional income that is not covered by the main Self Assessment Tax Return, supplementary pages must be included. Examples include the likes of loss relief claims, taxable lump sums from any pensions overseas, stock dividends, life insurance games, and interest from UK securities.

Not hiring an accountant – Last but not least, a chartered accountant is worth their weight in gold when it comes to tax returns. They can make sure you are making the most of any tax deductions while also giving you the peace of mind that your tax return is filled out correctly, and everything is being handled above board. The last thing you want to do is end up on HMRC’s bad side and face a substantial fine because of a simple human error. By taking advantage of a fixed fee accountancy service, you can make sure that this never happens.

So there you have it: some of the most common mistakes people make when it comes to their Self-Assessment Tax Return. If you can avoid the errors that have been discussed above, you can give yourself a great chance of ensuring your tax return is filed successfully and that you never have to worry about it again once it has been submitted by the end of January.