Focusing on the daily operational aspects of your small business can often lead to neglect of the key requirements that can prove so influential to the success of the company. It’s vitally important that any small business owner sets the time aside for regular business administration and review of company finances.
Follow these simple steps to ensure your business profitability continues into the future:
1. Maintain accurate accounting records
It’s important to maintain accurate accounting records so you can trace all elements of your business spending. No matter how small transactions happen to be, getting into the habit of regularly recording them could be critical to your business success. When it comes down to the possibility of tax deductions and expense calculations, this information can be really critical. Storing all business receipts effectively or maintaining a computerised record can be easy when carried out on a daily basis. Keeping on top of customer invoicing is also a key task that will need to be factored into the busy working day of any small business owner. Maintaining a regular cash flow is important for day-to-day operations to continue, so ensuring invoicing and chasing key account payments is carried out regularly can make all the difference to whether you continue trading.
2. Meet all legal requirements
Making sure you are up to speed with all legal requirements is essential for business owners. It’s often the case that handling administration effectively helps identify cost efficiencies and inessential expenditure too, so it’s well worth putting in the added time for regular business administration. It’s important that you carry out extraction of any profits from your business in a recognised fashion, as improper deductions of dividends, loans or salaries can result in hefty fines from HMRC.
3. Meet tax deadlines
Filing tax returns and paying any tax liabilities on time are priorities for any business, as failing to meet tax deadlines can eventually result in business wind up orders. As long as your financial accounts are maintained in an orderly fashion, making tax returns and VAT returns should not be too time-consuming and meeting deadlines reduce any risks of fines for non-compliance.
Highwoods and Associates provide a personalised accounting service to business owners in the Shoreditch and Dartford areas of London. Contact us for information about ways in which we can help you with your business accounting requirements.