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Online accountancy can only be performed well when used in conjunction with the postal service, I reckon. Otherwise, your accountant will either have to rely on your bookkeeping – and as a non-professional, you’re unlikely to do a perfect job – or you have to scan and email documents, and how laborious is that? I use recorded delivery with my clients, which works well.
Accountants are just like any other service industry – it’s all about horses for courses. A major international practice is ideal for a major international company. But what if you’re a small business or trader? Using such an accountancy practice would be a bit like sending a battleship to sink a rowing boat. And, a very expensive battleship at that. Surely what you looking for is a practice that reflects you own values and attitudes towards customers? A small business values every customer irrespective of size. Its customers have names not account numbers. It provides a service tailored to suit the customer’s needs, not one size fits all. If a customer wants evening delivery that’s what they get.
And that is exactly the philosophy that underpins Finch Accountancy. It is a friendly but very efficient service that can be tailored to match you needs. There is no “Blank cheque” approach to fees. Everything is carefully costed. You know want you will pay and you know what you get. For every new prospective client there is a free one hour consultancy where it is determined exactly what your needs are and how much it will cost. During this meeting there will be useful tips about actions the clients can take to reduce their accountancy costs. If all this sounds like what you are looking for call Tessa Finch now. This could be your first step towards the sort of accountancy service you’ve always wanted – but never found…Yet
Common Business Structures
Sole trader
- Being a sole trader is the simplest way to run a business.
- You make all the decisions on how to manage your business.
- You raise money for the business out of your own assets, and/or with loans from banks or other lenders
- All profits go to you, and you are taxed on these in your annual self-assessment tax return.
- As well as tax, you need to pay National Insurance Contributions – fixed-rate Class 2, and Class 4 on your profits.
- As a sole trader, you are personally responsible for any debts run up by your business.
Partnership
- A partnership is a relatively simple and flexible way for two or more people to own and run a business together.
- In a partnership, two or more people share the risks, costs, and responsibilities of being in business.
- Usually, each partner shares in the decision-making and is personally responsible for any debts that the business runs up.
- Each partner is self-employed and takes a share of the profits, and is taxed on this profit share as shown above for a sole trader.
- Unlike a limited company, a partnership has no legal existence distinct from the partners themselves. If one of the partners resigns dies or goes bankrupt, the partnership must be dissolved although the business may not need to cease.
Limited liability company
- Limited companies exist in their own right. This means the company’s finances are distinct from the personal finances of their owners.
- Private limited companies can have one or more shareholders. They are not responsible for the company’s debts (unless they have personally guaranteed a bank loan, for example). However, they may lose the money they have invested in the company if it fails.
- They must have at least one director and a company secretary, who may also be shareholders.
- Companies must be registered (incorporated) at Companies House.
- Annual accounts and an annual return have to be filed with Companies House – this information is available to the public.
- The directors and secretary are responsible for notifying Companies House of changes in the structure and management of the business.
- Profits are usually distributed to shareholders in the form of dividends.
- Companies pay corporation tax and must make an annual return to HM Revenue & Customs
- Company directors are employees of the company and must pay Class 1 National Insurance contributions as well as income tax on their salaries.
- Directors who trade negligently may be personally liable for the debts of the company.
· Get a receipt/invoice for every business payment that you make.
· Record all of your business takings – and if you take money out before your count up (e.g. from the till to make a payment) – be sure to include this amount in your takings as well. If you are not already registered for VAT, be aware that you may need to register if your takings are greater than £67,000 in any consecutive previous 12 months (there are penalties if you fail to register when you should).
· Clearly record any non-sales income – in particular your money that you bring into the business. Note customer names/details on paying-in book stubs/slips.
· Write up your cheque book stubs fully – date, payee, item purchased, supplier invoice number.
· Record all of your vehicle’s business mileage (a good way to do this is to keep a small notebook in your car), as well as your total annual mileage.
· Don’t use your business money to make private payments, instead draw out round lump sums – e.g. a few hundred pounds once per month – your “drawings”, and use your private bank account to make private payments.
Keep everything – bank statements, cheque stubs, paying-in book counterfoils, copy sales invoices, purchase invoices/receipts, supplier statements, and notes of cash transactions.
Previously, home workers could claim only expenses for heat, light & power, when working from home. Mortgage interest/rent/home insurance/council tax claims would have meant that part of the home used as an office would then no longer qualify for Principal Private Residence relief on disposal of the home. Now, however, HM revenue & Customs that they may, now, claim for these things, without losing the PPR relief.
See http://news.bbc.co.uk/1/hi/programmes/working_lunch/7459639.stm
Many online accountants offer a service of accounts preparation from your own online bookkeeping. However, Finch Accountancy does more than that – I actually write up your records for you – so there’s little effort on your part, required.
