5 Ways You Can Get Ahead of Tax Season This Year!
It's no secret that it's important to have your books in order ahead of the new financial year. The basic responsibilities are, keeping track of income and expenses, file a self-assessment income tax, complete VAT returns if you are VAT registered, calculate income tax and national insurance if you have any employees. If you feel you are behind though, here are some tips on how to make sure your bookkeeping isn't as chaotic or stressful.
1. Hire a Professional
Hire an accountant to do it so you know it's done and that it's done correctly. When considering hiring an accountant it's important to take into account time and cost. How much time are you're spending doing your books rather than earning when it would take a professional much shorter amount of time.
2. Keep a manual file
Manually record your expenses with a tax folder with the current year in an envelope or some way clearly labelled so you know you have everything ready rather than hunting through all paperwork dating back however long.
You can invest in an app like Quickbooks, Bench or tax software than works everything out for you requiring that you enter all the information correctly and accurately. It can start out at around £6 per month to invest in bookkeeping technology for a basic package.
4. Allocate time
If you are set on doing it yourself then set yourself a specific time to get them done and do it! It is ideal to do this weekly so you have all your invoices, transactions and receipts up to date.
5. Have separate bank accounts
Separate your business account from your personal account to make it easier to track payments and spend where it's all in one place and doesn't get confused with your day to day food shop for example. It is also worth keeping a record of any cash payments as well so that these don't get lost.
We know filing and recording paperwork (especially when it comes to money) is no-one's idea of a fun time but we hope that this article has helped provide some clarity and made it seem less stressful ahead of the new financial year.
For more information about taxes and accounts for small business check out the local entrepreneur and accounting expert, Ria Jayne Lincoln. For any other advice on business be sure to check out our previous blogs or give us a call to learn how we help businesses every day by finding a place your business can call home!