Are You Paying More For Your Accounts Than You Should?

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Managing your financial books is a crucial part of your business but not something you can afford to spend too much of your earnings on.

But it’s not always easy to work out exactly what you should be spending on your accounting needs and if you’re spending more than you should be.

Here are some ways in which you might be paying over the odds for your business accounts.

Tax

Every year, individuals and companies end up paying far too much tax than they need to. Not only this, but if you leave it too late to submit your tax forms, you could face a hefty fine.

Never underestimate the importance of hiring an accountant to complete your tax return. Not only does their expert knowledge and up to date understanding of regulations help to minimize costs, they can help you to avoid tax penalties if you file yours too late.

You can also utilise an accountant for expert advice on how to maximize your benefits and minimize your taxes each year. Shop around to find out what accountants in your area are charging and make sure you’re paying a competitive rate.

VAT

Some business owners won’t realise that they may be paying too much VAT. In a nutshell, VAT can be a complicated process to understand, and a good accountant will be able to advise on the best way to save you some serious money.

The Flat Rate Scheme can be source of profit for many businesses and covers contractors, freelancers and consultants. HMRC possess a list of different VAT rates for different companies and you select the relevant VAT rate for your business

Essentially, it means that you will pay a flat rate of VAT on any gross turnover your business makes. You select the relevant VAT rate for your business. HMRC offer a 1% discount in your first 12 months of registration.

Bookkeeping

Taking care of payroll, transactions, budgets and remittances, bookkeeping can end up costing you a substantial amount of time, not to mention money. If you’re looking to cut down on these costs, it could be worthwhile to hire a bookkeeper for the task.

Whilst it may seem as though you’re spending money in order to manage these financial necessities, it could end up saving you money in the long run. Why? Established Bookkeepers can complete these tasks in half the time it may take you to do so. This then frees up your time so that you can focus on your business and generate more of that hard-earned money.

Accounts Administration

Your financial information should be prepared in advance and available for you to access regularly. This is where online accounting systems step in, and are a great way to make this as easy as possible.

With more enlightened, Cloud based systems, not only will this cut the cost of hardware installation, but you will be able to make better informed business decisions based on real-time data reporting. This could save you a significant amount of money along the way.

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