Accountants Colchester Blog - Accountants Direct in Colchester

Potential Pitfalls When Accountants Go Paperless

The move to a paperless system is one liable to mistakes, especially for a busy accountancy firm with mounds of files on record. However, in an increasingly online dominated arena, the paperless move is one necessary to keep up with the times.

Digital accounting will greatly improve overall efficiency, helping you to quickly access documents or calculate tax equations at the click of a button. Co-operation with clients and other accountants – who are also likely to be paperless – will become easier as well.

Forecasting Profit & Loss When Writing Your First Business Plan

Calculating profit and loss is the ultimate objective when writing a business plan. Doing so accurately is a vital component for managing cash flow and evaluating future company performance.

For start-ups in particular, drawing out your first business plan may be trickier than expected. It’s unlikely you’ll know every financial detail at this stage – and some unexpected expense always seems to pop up out of nowhere – so working out profit margins can be as much guesswork as it is anything else.

To help with this, we’ve put together some tips for writing out your first business plan, allowing you to visualise which areas are performing well and those that need tightening up.

How Your Business Can Take Advantage of Contactless Payments

Successful companies are able to adapt their business model to the ever-changing environment around them. As technology improves, this means the behaviour and spending patterns of your target audience will also shift. You must recognise these changes and acclimatise to them.

One such change comes with contactless payments – the latest in a line of payment technologies that have evolved rapidly over the past decade. Previous adaptations, such as chip & PIN readers and instant card swiping, resulted in an increase in card transactions when they were introduced.

A similar pattern has begun to emerge with contactless technology. Statistics by the UK Cards Association shows that over 102 million contactless cards are currently in issue, an increase of around 27% on last year.

What is Business Forecasting and How Do You Do It?

A business forecast is an estimate of a company’s future performance, principally relating to its income, expenditure and profits. An effective forecast model will also gauge economic trends and environmental factors that can influence these basic calculations.

All types of companies, from SMEs to large multinationals, should have a well-organised forecast to work from. They catalogue an array of complex figures in the same place, helping you compose financial decisions with greater clarity and avoid detrimental spending practices.

If you’re looking to produce a new business forecast, here are some tips on how to get started.

What Does a Balanced Budget Look Like and Why Should Your Business Have One

No matter the size of your business, being fully aware of your income and expenditure is of paramount importance. If the accountancy spreadsheets are unbalanced, or you’re simply unaware of certain outgoings, profit margin and the company itself will suffer.
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How Will HMRC’s Move to Digital Self-Assessments/Accounting Affect Your Business

With the upcoming digital tax makeover soon to be upon us, business owners across the UK should be aware of their new responsibilities when dealing with HMRC. The system is currently being phased in and set for universal coverage by 2020.

The Only Reasonable Excuses for Filing your Tax Return Late

Although filing a tax return late will incur penalties, you are allowed to appeal the decision should there be a reasonable excuse.

The government provides a list of these acceptable excuses on their website, ranging from situations outside of your control to serious personal issues.

How to Easily Set Up Your Employees Pension Scheme

Every employer in the UK must place their staff into a pension scheme and make contributions into it. This is known as ‘automatic enrolment’ and became a legal requirement under the 2008 Pensions Act.

Choosing the Right Business Structure – LLP, Limited or Sole Trader?

Before registering a company in the UK, you will need to consider which trading form suits your type of business. There are various aspects to take into account before you reach a final decision, including industry regulations and tax considerations.

Charging and Claiming VAT for Your Business

As a business owner, you must decide if you want to register your company for VAT. This is compulsory for companies with a taxable turnover of £83,000 or higher, although you can still register voluntarily if your turnover is less than this amount.

When you are VAT registered this means VAT has to be added onto the goods and services you provide, known as ‘taxable supplies’. You can then also claim VAT back on the purchases you make in relation to the business.
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