Whether it is a small business or a large business, bookkeeping has to be done. It doesn’t matter if you do it manually or do it using accountancy software, it will put your business in a great position. Various tasks such as recording money, checking outgoings and paying workers can take a lot of time. If there isn’t time to do it yourself, find a company to do it in your stead.
Your business finance must be in a formal format. It would include the amount people spend in store and payments owed. The date for handing in accounts will depend if you are a sole trader or a Limited Company.
It is sensible for the accounting year to run from the start of April to the end of March due to the taxable income for sole traders and tax return back up is calculated from 6 April to 5 April. Limited companies have more leeway when choosing their accounting year but will have to file accounts every year regardless.
UK companies are charged corporation tax via HMRC. Currently the rate is 19%.
You must apply for VAT if your yearly sales are £79,000 or higher. Customers are charged at 20 per cent for VAT, which altogether means 20% is added to the sales values. You set this amount aside to what customers pay in your business. You may or may not be eligible to get any VAT that you have spent on buying items for your business subject to the VAT scheme you are on.
With help from the information provided above, you will now probably know which plan is right for you in regards to accounting. You should stick to your decision and try to avoid spending hours trying to do it yourself. Businesses come with a flurry of frustrating problems however these problems are crucial in keeping your business safe and running with the information provided.
Cornel Accountants offer a cloud accounting service to businesses of any size so give us a look and get in touch to discuss the full range of accountancy services offered.