Promotion
Now that the panicky tax return season is over, it doesn't mean you should take your eye off the ball when it comes to your finances. It's your business, it's your baby, so you can't be too careful. Accounting is a cascading function so if you make a mistake one month and ignore it, it will only get progressively worse and mean more work further down the line to put things right.
The amount of times clients try and claim back for 'entertaining' when, in reality, they have just gone for a few pints with their friends, is pretty funny
Obviously, this keeps accountants in a job - to make sure these issues don't arise. With that in mind, here are some of the most common problems people face – and Flow Accounting explains how to solve them.
If you've got any accountancy headaches, fill in the form below and let Flow Online Accounting be your financial aspirin.
Business Plans For Financing
A lot companies find that they struggle to obtain a new loan or secure further funding if they don’t have a solid business plan. Unfortunately, for a lot of business owners, they have no idea how to write and structure a business plan. This is where Flow comes in and helps draft what they need to include and formulates some forecasts that they can use to wow the banks and investors.
VAT & Tax Inspections
When you get a notification from HMRC, it is a fine balance between good news and bad news. If you’re lucky, they are getting in touch to let you know you they owe you some money, but more often than not, it will be for something else. Generally, HMRC inspections are just routine checks a company needs to go through every few years but it can still be a cause for concern for some businesses. Flow will help you prepare for these and make sure that you have all the right documentation such as your annual accounts, bank statements and invoices.
Advice On Mortgages Or Loans
As well as being trusted with finances for general day to day business, there are also a number of questions when it comes to mortgages or loans and Flow can point you in the right direction. Sometimes it is business related, sometimes it is personal, but whatever the agenda, Flow will be able to suggest the possible options and plans available to their clients – it could be the case that selling shares would be better than getting out a loan, or leasing could be more efficient that buying a property with a mortgage.
Expenses
Flow spend a lot of time dealing with expenses and making sure these are posted correctly. The amount of times clients try and claim back for 'entertaining' when, in reality, they have just gone for a few pints with their friends, is pretty funny. Unfortunately, there are a few things that just can't be accepted as business expenses. But the bigger problem with expenses, is people not staying on top of them. With technology, it is now easier than ever to simply take a quick photo of a receipt and enter the details to your account, so there really is no excuse to forget to correctly file your expenses.
Separating Business From Personal
It is quite common for small business owners to just assume that as it is their business, then any revenue generated from the business is theirs to use freely. This really isn’t the case.
You need to separate business from personal. Set yourself a realistic salary that comes from the business and don’t automatically think that if you post further profits, then they are yours to do with what you like.
You need to get some in reserve for your business and reinvest too. Regardless of the size of your business, it is critical that personal and business finances are kept separate at all times.
If you've got any questions for Flow, just let them know.
Flow Online Accounting cover a wide range of businesses and have experience dealing with all sorts of scenarios. The chances are, if you are struggling with your accounts, we have dealt with it before.
What makes our lives even easier, is that with the power of cloud accounting, we can solve problems faster than ever before. Why not see how online accounting can help your business today? Call Flow on 0330 123 5577.
