We are well
in to 2018 and the financial year is coming close to its end. You should have
an indication of how you want to take your business going forward. In our
previous blog we talked about goals and achieving them with your strengths and
opportunities. This time around we talk about the best ways to expanding your
finding this is the time of year a lot of our clients are needing budgets and
cashflows. A detailed
cashflow can inform you when cash is available to spend or if cash is running
low ahead of time. Knowing this ahead of time can avert any crisis and indicate
to you when action is needed so you are well prepared.
cashflow needs at least a year in advance will give you a more accurate picture
of your finances. Regular maintenance of this important as you don’t want to
rely on old figures in this ever changing environment.
equally as important as a cashflow. If you have expansion plans in mind, then
you need to master your budget. Are you looking to get a second office? Or are
you looking to get a bigger office?, do you need new equipment. Having
an up to date budget can give you clarification on which may be the best way to
expand your business. Budgeting is also a great way to indicate where overheads
may need to be cut down. You may be over spending on some things but then neglecting
the investment in other departments of your business. This is where a budget
will help balance your business.
expansion plans you may have, you’ll need the cash to back it up. There are
many ways to obtain the finance, but the most conventional way is to get a bank
loan. With your cashflow and budgets shiny and polished will keep the bank
manager sweet. You can then enforce your plans to expand and grow!
season has passed with the self-assessment deadline and now it’s the season of
love. With love in the air, its time to make your business your valentine. Take
the time to make a plan of action for your business. What do you want to
achieve in the next 12-18 months?
looking to expand your business and grow a larger list of customers? or are you
trying to cut back on the amount of expenses your business pays out ? These are
all goals that should be in the clear to you. Write down your plan of action, top
tip, something that is written down will be more likely to be achieved than
something that you have stored in your mind.
written down and somewhere in sight will give you the reminder and motivation
to try and achieve this. Think of the strengths and weaknesses of your business.
Refresh and re-train on yourself in terms of, what are your strengths, work on
weaknesses to learn and help achieve your goals.
business will give you opportunities to take it to the next level. However,
with opportunities you also must weigh up the risks. This is where you need a
forecast for your business, a cashflow can help make the deciding factor
whether its time to hold back and watch the spending, or if there is spare cash
around to invest back in the business.
We are at
the start of 2018. Make it a good one.
Year to you all, we hope you’ve had a lovely Christmas. It’s the New Year but
some things remain the same, and that’s the deadline of 31st January
for Self-Assessment returns.
is a system HMRC uses to collect tax. For people who are self-employed, with
their own business or others who make additional income.
The dates for
April 2016 to the 31st March 2017. With online returns needed to be
January 2018 and paper returns to have already been submitted by 31st
The best way
to keep the tax bill down is to have your paperwork organised. You will need the
actual receipts to claim as expenses. Collate your receipts and keep together
as HMRC can ask to see evidence at any time. Another great way is to utilise
the ISA savings as any interest received is tax-free. You’ll keep your savings
on a tax-free basis for as long as you keep the money in your ISA accounts.
tax payers benefit from additional tax savings when they contribute in to
pension schemes and give to charity.
of a list of records you will need are;
- Business and personal bank statements
Records of income
- Records of purchases
- Rental Income
- Interest Income
- Child Benefit and Income Support
You need many
other records to keep, here at Cross Accounting we give our clients a more in
detail list of records which we require from them to complete their tax return.
This also includes a reminder of approaching deadlines to ensure not to be
penalised. HMRC fine £100 for anyone who misses the 31st January
revealed a record number of people are filing for self-assessment this year as
the numbers are north of eleven million. If you’re a couple of years behind,
then do not worry as you’re not alone, we have taken on a number of clients in
this situation, and have supported them and brought them up to date. If you’re
not sure if you need to submit a self-assessment or you need to complete a
return, you can call us on 02920 653 995 or visit our website on www.crossaccountingservice.co.uk
to see how we can assist you.
our latest blog. Christmas is around the corner and it’s our favourite time of
the year here at Cross Accounting. It’s the time of giving and is there any
other way to give your business a boost a grant to get your finance in place.
or an individual will be given a sum of money for a specific project or
purpose. A grant usually covers only partial costs involved. Grants are given depending
on your business activity, the amount of jobs that will be created due to this
investment or if you are in a specific industry sector. Sometimes grants are
linked to geographic areas. Such as those areas in need of an economic
Wales can support in finance, take a look at their finance locator to see if
grants and other finance your business may be eligible for at https://businesswales.gov.wales/zones/business-finance/funding-search-tool-form
ensure that you meet the requirements of the scheme before applying for grants
and finance. You’ll have to ensure you are ready to put up some of your own
money as grants only cover partial costs. You’ll also need to have a detailed
description of your project or purpose and a work plan with full costings. We
can assist with a budget and full detailed cashflow to secure the finance you
application process for grants can sometimes be time consuming and there
usually is a lot of competition but on the plus side, most grants don’t have to
be paid repaid giving your business that extra boost.
looking for that push to reach some New Years goals, the Development Bank of
Wales can support to get the finance your business needs to succeed. Visit https://developmentbank.wales/ to get
you ready for the New Year.
need to have a polished business plan at the ready. If you would like us to look at your business plan,
then you can book in for a free one-hour consultation where we can discuss how
to start the New Year strong. Visit our website on www.crossaccountingservice.co.uk
or call us on 02920 653 995. We wish you all a Merry Christmas and a prosperous
There has been a change in the VAT Flat Rate Scheme since
April 2017. The government are concerned that some businesses are using the
scheme to pay less VAT than appropriate. Read our blog to be reminded of the
rules and regulations.
The Flat Rate Scheme is designed to simplify your records of
sales and purchases. It allows you to apply a fixed flat-rate percentage to
your gross turnover to arrive at the VAT due.
The scheme is for businesses with a turnover no more than
£150,000 a year, excluding VAT. The Flat Rate Scheme is a simpler method of
working out the VAT you have to pay to HMRC. The flat rate percentage you
use depends on your business sector. The correct sector is the one that most
likely describes what your business will be doing in the coming year. Click
here to find out your sector percentage https://www.gov.uk/vat-flat-rate-scheme/how-much-you-pay
From 1 April 2017 the flat rate changes if you’re a limited
cost business. The flat rate percentage will be 16.5% regardless of your sector
if you are a limited cost business. You’re a limited cost business if the
amount you spend on relevant goods including VAT is either, less than 2% of
your VAT flat rate turnover or greater than 2% of your VAT flat rate turnover
but less than £1000 per year.
You will also get a 1% discount if it is your first year as a
VAT registered business. If you’re unsure about your VAT and would like to
discuss, then please don’t hesitate to contact us.