Monthly Archive July 2010

Byadmin

8 Mistakes Small Business Owners make with their Bookkeeping

So proud and loud at the premier top spot has to be doing it all yourself, so then;

  • Either you or your spouse/parnter doing it all yourself with no previous knowledge, although you were good at maths, so think that this will help you do it all correctly.  Hang on though, didnt you start this business as you were good at doing something and could make some money from it? And was that bookkeeping?  Think you get my point!
  • So number two has to be buying things on your credit card or cash and forgetting to put them in the system – then sitting and trying to work out why your accounts cant be reconciled, which again is something that must be done on a regular basis so that you know what is in the business and what is not.
  • Number three – Employees – ok so they only worked for me for three weeks, I don’t need to bother with paperwork etc do I?  WRONG, keeping accurate records means keeping HMRC off your back – do it!!
  • Ok, so half way through then, number four – bank reconciliation – how many understand what this means? How many understand the importance of it?  I rest my case milord!
  • Backup sits at number five – do you keep backups of all your records? Does it cross your mind that if something was to happen, do you really want to sit at your machine for three days solid, inputting the information all over again – I mean it took you long enough last time to understand where everything went – do you think you will remember?  So backups backups and more backups!
  • Number six – yep nearly at the end now – bank accounts – do you have one for the business and one for you? No??!!! Heck, do you really want to have to provide the Revenue with explanations and copies of all the major purchases you have done personally, but show up on the account as you decided there was no harm in using your personal account – good luck!!
  • Penultimate one then has to be VAT – oopps, sorry did I swear then?? Are you on the right scheme for your business (at this point some glaze over as they aint got the foggiest that there were different schemes), do you understand what you can and cant claim for? The last one alone is a good enough reason to get someone else to do it for you.
  • Ok, so finally then, yep we made it to number eight – losing paperwork …. arrrggghhh I hear cries of, ring any bells?  Yep HMRC to be polite, request (ok more order really) that you keep all your reeipts and statements and anything basically that moves for a minimum of six years – yep, six years of boxes full of paper that can stretch to many boxes, oh and don’t go and store them where the mice live – they like tearing up pieces of paper and having babies in them – there is a simple solution to this though – did you know that the Rev will allow you to store it all electronically now?

Ok so here comes the shameless plug then – well you knew it was coming – www.ftzaccounts.co.uk are mighty fine bookkeepers or if you are merely looking to get your receipts scanned in and formatted in a pdf and excel spreadsheet, might I recommend www.shoeboxaccounting.co.uk and on that cheerful note, I will leave you to ponder on why you didnt think of these!

Byadmin

Bank Charges

Over the last few days there have been many cries about bank charges and how prohibitive they have now become, add this to the fact that many existing bank clients are having overdraft reduced and rates increased when renewal comes around, its no wonder bank are now being accussed of ripping off customers.

One big trend we have noticed is that banks don’t like Declining Trade, be it for overdraft extension, refinancing or even a new loan. This is one of the biggest causes of rejection of a bank application.

However, the very fact we have been in (and hopefully out of) a recession, means that many small businesses will have seen a downturn in trade, and now need finance more than ever to help them grow.

Finance though is still possible, but not with the big main lenders who are feeling the pain most, so if you need to know more get in touch and we can chat.

We can offer FREE Business Banking Facilities with a mortgage

No Upfront Fees

VERY COMPETITIVE PRIME REMORTGAGE PRODUCTS AVAILABLE

Development Finance

COMMON SENSE APPROACH – NOT TICK BOX

EXCLUSIVE FUNDS AVAILABLE

Short or Long Term Finance Available

Working Capital Loans

Fixed Term Overdraft Replacement Loans

ADVERSE CREDIT AND “SELF CERT” LOANS STILL AVAILABLE

Byadmin

Working Capital

Working Capital is the lifeblood of any business, be it for subsistence or expansion.

With the recession now officially being over, businesses NEED funding in order to profit from the upturn in orders and business.

However, the effect of the recession means that companies may have had cash-flow pressures over the last few years from reducing orders or increasing debts.

With a recent survey showing banks writing off over £5.6bn in 2009, banks are now being more cautious with risk and only lending to business they can be sure about. A business needing working capital, typically will not have strong books hence the reason they need to borrow the money on day one.

So where do you turn?

Come chat to us about a WORKING CAPITAL SECURED LOAN.

This loan is underwritten on a completely common sense approach, and we will seek to fully understand the deal, with the lending decision taken by a HUMAN rather than take a bland tick box approach.

LOANS FROM £25,000 UPWARDS

FIRST OR SECOND CHARGE LENDING AVAILABLE

INTEREST ONLY TERMS AVAILABLE

SHORT OR LONG TERM LENDING

Byadmin

Tax Returns

Tax return – is that a ‘dirty’ word to you?

Does it bring you out in a rash?

Or are you one of the organised and have already done it?

I know that from experience that a lot of people put their heads in the sand and leave it to the last moment, then suddenly drop everything on their accountant at the start of January, knowing they are pushing their luck, yet still expecting the miracle of everything being done and submitted for them.

Ok, so advantages to doing it early then?

Well, for starters, doing it early means you can budget for the amount you will possibly have to pay, as admit it, suddenly having to find a large sum in January is not ideal, as its usually a lean month for most. Also, did you realise that getting the information to your accountant or tax advisor early, means they would usually offer you a decent rate for their services, yet the nearer you get to the deadline, the more they can charge you.

After all, you left it so late, why shouldnt they charge you for spending all weekend pouring over your figures?

If you need help with your tax return, then head to FTZ Tax for your tax return help.

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