Part 2 of my guide to self employment will cover the steps which you need to take to register yourself as self-employed. If you’ve not done so already I would recommend reading Part 1 of the series which talks about what you need to consider before starting out on your business venture.

If you are certain that self employment is for you the next steps are to inform the relevant authorities that you are  now working for yourself:

Image: 89studio / FreeDigitalPhotos.net

1) You have to inform HMRC when you begin self-employment. This is very easy and can be done online, this previous blog post has the information you need.

2) Do you need to register for VAT? If your turnover is expected to be above £77,000 per year you have to register for VAT. There are several schemes which you could use and they could actually save you money. It’s worth seeking advice before registering for VAT, below are 2 blog posts which explain how you could save money by registering for VAT:

• Should I Register for VAT?
• What is the Flat Rate Scheme?

3) It is advisable to find a bookkeeper or accountant to help you compile your accounts and help you look after your financial affairs. Whilst you will be paying for their services on a monthly basis, over the course of the year their help will be worth it’s weight in gold as they will help you save money, tax and deal with HMRC for you if needed. Reducing stress is a major bonus for any business owner

• Choosing Your Bookkeeper
• Should I Outsource?

4) Once you have chosen your bookkeeper/accountant the next thing you should do is send off form 64-8 to HMRC. This is a form which will register your bookkeeper/accountant as your agent, which means that they can talk directly to HMRC about your tax affairs. This is very advisable and will also cut down on the admin work you have to do. You’re paying for someone’s services, make sure you get you put that money to good use!

Image: renjith krishnan / FreeDigitalPhotos.net

The next blog in the series will look at how you can become more organised with your paperwork to help reduce the time that you spend on administration tasks. If there are any topics you would like covering, please let me know.

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.

 

 

 

My shiny new business cards have arrived. What do you think (other than that I need a better camera!)

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