Make This The Tax Year to Improve Your Business Finances
I think you’d all agree that we would all like to be better organised when it comes to business finances. We’re a month into the new tax year and if your small business has yet to make improvements for the year ahead to help improve your business finances, now is the time to act before it is too late and the tax year is coming to a close. The last thing you want to do is miss out on tax breaks because you have been inefficient in handling your company’s taxes.
So what are the main changes you should consider implementing at your business this year?
Keep your books up-to-date and in order – The first change you should consider if you have not already is keeping your books accurate, organised and up-to-date. You always need to make sure you are ready for a call from HMRC. Many small business owners tend to have the ‘it won’t happen to me’ attitude, but if your books are not prepared and organised, you could find yourself in serious trouble, so it’s really not worth the risk.
Get a new invoice template – Did you know that there are legal requirements in place regarding what an invoice should look like and include? You must comply with HMRC’s instructions. This includes featuring all of the following information on your invoice – a clear description of what you are charging for, the date or dates of the work that was carried out, the price that you are charging, and full details about your company. There are then different requirements for certain invoices, such as VAT invoices. So do your research about these to ensure you are not accidentally failing to comply with HMRC’s requirements.
Keep on top of your expenses – If most people are honest, they will admit that they make errors when it comes to their expenses. This includes everything from not bothering to claim for small expenses that they believe are insignificant to trying to include expenses that are actually not allowed. Shockingly, a study last year that was conducted using research from YouGov showed that only 22 per cent of small business owners claim for all of their expenses. This means that 78 per cent of business owners are missing out on deductions that are available to them. Therefore, this new tax year represents the perfect opportunity for you to keep on top of your expenses so that you are not one of the 78 per cent.
Make the most of your accountant – If you don’t currently use the services of an accountant, now is the time to consider doing so. This is the best way to keep on top of your taxes and improve your business finances. You can have the peace of mind that everything is in the hands of an experienced professional, ensuring your taxes are above board and you are not paying more than necessary. If you already employ an accountant are you getting the full benefit of the advice they can offer? If not, now might be a good time to switch to a better accountant before the tax year end starts to loom again.