I’ve just been reading this article on the Small Business Trends website, which gives 5 easy ways to stay on top of your accounting if you are running a small business. If you don’t want to read the full article, I have summarised each point below:

1. Make Friends with Technology
2. Call In Reinforcements (contact me if you would like help)
3. Visual Reminders to Open Your Eyes
4. Make Falling Off the Wagon Hurt
5. Be Publicly Accountable

The full article can be read here and is very useful for those of us running a small business.

As the tax return deadline comes ever closer accountants and bookkeepers nationwide will be pulling their hair out and racing against time to get all the last-minute tax returns filed. It’s probably the most stressful time of the year for us and at some point we may say ‘why do I do it?’. I think it would be safe to say that everyone utters that phrase at some point during the year when work becomes stressful.

So WHY do I do it?

Personally I love bookkeeping because I enjoy working with figures and working closely with clients to help make sure that their business runs smoothly on the financial side of things. I have an analytical mind so quite often can spot problems/trends that a business owner may not notice, it might only be something simple but it could make my client’s business run more efficiently.

I also love meeting new clients as each business is different and has different needs: They may only need the books doing once a year, or once a month. Or they may ask me how they could save money or is there a better way of doing things. I love the variety that this profession brings with it.

It’s also nice being my own boss and to earn extra money alongside my main job, which one day I dream of quitting to run RS Bookkeeping on a full-time basis. My aim is for RS Bookkeeping to become a well known and respected business within my local area.

Enough about me, why do you do it?

Starting and/or running your own business is a daunting task, making sure that your accounts are up to date and correct can be even more daunting. Most businesses employ a book-keeper or accountant to take care of everything for them, but how should you choose the right person for your business?

photo credit: hang_in_there

 1) Reputation

Ask around in your local area to see what people are saying about your prospective bookkeeper/accountant. If you don’t like what you hear, search for someone else

2) Reliability

This is something that you will only find out through dealing with them. Do they stick to what they say and get things done on time? Do they go away on holiday without warning and leave you in the lurch? Are they easily contactable when you need them? If you feel that you are being let down look to change. You wouldn’t accept a sub-standard service from you phone, internet or utility providers so why accept it from someone your business relies on for advice?

3) References

Don’t be afraid to ask for references during your initial meetings. If there is nothing to hide then the bookkeeper/accountant should gladly provide you with some businesses to get in contact with. Bear in mind that not all companies will provide references no matter how good the service they receive is.

4) Credentials

Make sure you check that you are dealing with the person/company that you think you are. Ask to see proof of insurances, memberships to professional bodies etc… to allow you to verify who the bookkeeper/accountant is before allowing them to carry out any work for you.

5) Trust & Personality

You should only work with a company/someone that you can trust and will get along with. You will work closely with your bookkeeper/accountant throughout the year, for this relationship to work effectively and efficiently you will need to be able to completely trust them and have a good working relationship/friendship. If everything else is fantastic about the person/company but you personally would not be able to get along with them, it may be wise to look elsewhere.

6) Cost

Bookkeeping and accountancy fees vary from one person/company to the next. Don’t be afraid to ask what the fees being quoted are for. You need to make the correct choice for your business. Always ask for fixed fee that way you know what you are paying out; you could be in for a shock if your accountancy fees turn out to be more than your profit.

This is not an exhaustive list by any means, but remember to make the right choice for your business and one that you will be happy working with long term. If you are looking for a new bookkeeper, please get in contact with me to discuss your requirements and how I can be of service to your business.

Seems like a daft question, how could you have to pay £1,600 to HMRC if you don’t have any tax to pay?

You may have seen an earlier blog post here: http://rsbookkeeping.wordpress.com/2011/04/08/tax-return-fines-set-to-rise/ when HMRC announced that tax returns are set to rise. The simple fact is that even if you don’t owe any tax at all to HMRC, you could still end up being fined £1,600 for not submitting the return on time. In the past it was possible to cancel the late return penalties if there wasn’t any tax due, but not anymore.

The £1,600 fine is worked out as below:

• £100 penalty for late filing
• After 3 months late £10 per day up to 90 days, then
• After 6 months late the greater of £300 or 5% of the tax due
• After 12 months late the greater of £300 or 5% of the tax due

Seems silly that you may needlessly have to pay some tax. If you are unsure how to complete your tax return surely it is better to spend a relatively small fee to have someone do it for you and avoid these fines? If you are capable of completing it yourself, then there is no excuse. It won’t take you long to do and will save you money in the long run.

If you are looking for any book-keeping or accounts work carrying out and your business is based in and around the Pontefract area (or anywhere), please contact me sooner rather than later!

I offer a winning combination of expertise and and experience for sole traders and small businesses all with helpful advice and a friendly, efficient service as standard.

Now that the 2010/11 tax year has ended it makes more sense to sort out your financial affairs out NOW whilst things are still fresh in your mind. By leaving it until the end of the year you run the risk of forgetting something important. The sooner you have your accounts prepared, the sooner you will know what tax you will need to pay at the end of the year.

By employing a professional to compile your accounts you will have peace of mind that your accounts will be compiled correctly, and it also gives you time to focus on running your business.

RS Book-Keeping can help with all your book-keeping and accountancy needs at extremely competitive rates, contact me today to see how I can help you