Business Growth Ideas Archives - Page 3 of 5

News,May 2018

Small Business Bookkeeping – A Beginner’s Guide!

George31/05/2022Accounting , Business , Business Growth Ideas

Small business bookkeeping gives you a clear view of the financial health of your business. Are you wondering what comes under bookkeeping in the case of small businesses or what are some ways to keep it interesting? We have got you covered here as we will explain the essential factors of bookkeeping for small business owners and beginners to have a basic understanding of it. Further in the discussion, you will gather important information related to the introduction of bookkeeping, how is bookkeeping a major requirement of small businesses, and how the process of bookkeeping practically functions. An Introduction to Bookkeeping Bookkeeping refers to a process that involves monitoring of financial transactions of your business, keeping track and then classifying them. In other simple words, it is a process that maintains a record of what is your business spending and what amount of money your business is receiving. Previously such tasks were handled with the use of ledgers and books, which became a reason to name the updated version of handling records as bookkeeping. The old practice of this process was quite time-consuming as the relevant individual or professional had to record the transaction of the business in the daybooks, journals, or cashbooks. Later this information will be transferred into a ledger which is considered to be the final destination. However, in recent times the bookkeeping software is luckily replacing the use of physical books and making it less time-consuming and more accurate. Our team of young tech-savvy experts and experienced chartered accountants will provide instant solutions to your bookkeeping problems. Call us on 02086868876 or email us today. What is the Requirement of Small Businesses Bookkeeping? Every business requires a record of how its money is being spent and what is the received amount of money. An accurate and well-kept record is the wish of every businessman so that he can have a clear view of his business’s financial health. Furthermore, when you ensure the error-free process of bookkeeping, you are several steps closer to carrying out a successful business. The reasons for this might include the following: It becomes easy to share and present your business financial information to other parties like lenders, accountants and investors. You will have the opportunity to complete your tax return in time and in an accurate manner. You will instantly identify frauds and false payments that can cause damage to your business finances. You can find better ways to avoid a cash crunch. This will be possible because you will be timely intimated what are the payments to be received or to be paid in near future. Accurate information about your finances will help you to plan and make your budget decisions more smartly. You can easily check and ensure that the money you are making is more than the amount of money you are spending. How Does Bookkeeping Function in Practical? Reconciliation and recoding are considered to be the most important tasks in order to ensure accurate small business bookkeeping. In the following, we have the relevant explanations for these tasks. This involves the following: Reconciling Transactions Maintaining Records of Transactions Reconciling Transactions: The word reconciliation refers to the regular cross-referencing of your business records and bank statements. This helps to ensure that the balance and transactions are in alignment and there is no mistake in the record. You can immediately identify the problem and rectify the transactions and balances that do not match. Moreover, it depends on the frequency of your business transactions which will help you to understand if you need bank reconciliation on a daily, monthly, or weekly basis. Moreover, the requirement of reconciling the books is at least to do it before you plan to submit your tax returns. Maintaining Records of Transactions: The importance of recording your sales is realised in the initial stage of the business world. Traditionally this practice was done by manually writing in the physical books and later these records were punched and attached to the spreadsheet. However, these days the data is downloaded directly for the online records and this helps further for the invoicing software. Just like the sales record, transactions need to be recorded as well. This will help you to note the business purchase at different times. In case you aim to make a claim about a business-related purchase, keep the proofs safe. Either you can put these details into your books or spreadsheets or this task can be automated. By doing this the debits from your business account will stream into the bookkeeping software. Reach out to our office for a consultation. We would love to discuss your queries and accounting problems over a cup of coffee. So what are waiting for? Arrange a meeting today to get instant help! The Bottom Line Now that you have gathered enough information about Small business bookkeeping and the discussion is coming toward wrapping up, we can finally sum up by saying that several businesses in the small business industry use bookkeeping software to save their time and energy. As this time and energy can be better utilised in growing your business valuation. Moreover, this practice reduces the chances of human data entry errors as well. In case you are way too occupied to manage bookkeeping yourself, you can always hire someone to do it for your business. There are plenty of levels of offers given by the hired bookkeepers and you can choose the one that goes with your allowed budget. At a modest cost, the basic level of bookkeeping can be started easily. Later you can ladder up to other advance offers once your business starts to take off. We hope these few minutes of reading will help you to handle your bookkeepers as well as make the right choice to maintain your bookkeeping well in the future. Disclaimer: The information about Small business bookkeeping provided in this article is general in nature. It Does not intend to disregard any of the professional advice.

What is Directors Loan Account and Tax on Directors Loan Account?

George29/04/2022Accounting , Accounting Issues , accounting software , Business Growth Ideas

Whether you are associated with the business world or do you carry out your business through a limited company? You surely need what is a director’s loan account. An admin has a significant amount to stay on top. Here comes the discussion of the director’s loan account. Before delving further into the discussion, let’s have a look at today’s points of discussion. This carries everything that you need to know to develop a basic understanding. The points include the following: What Is a Director’s Loan Account? Examples of Director Loan Account Tax On Director’s Loan Account Final Thoughts What Is a Director’s Loan Account? A director’s loan account refers to an account that allows you to access money from the account of your limited company. Because a director’s existence is a separate entity from the business as well as the funds of the company. This appears to be a positive factor in several ways. This ensures the following: There is no chance of interwinding business and personal finances. This is a secure and popular choice for business structures if we compare it with sole traders. Moreover, the fact is that the money in the business accounts is not purely belonging to you. One is required to go the extra mile to use the money in the business account. That is possible through the director’s loan account. Examples of Director Loan Account The possibility to use a director’s loan account is only when you serve as a director of the company. There are a few reasons for which access to business money is granted without naming it a loan. These include the following: Reclaiming the amount that you put for the business purpose earlier. Dividends Salary Expenses Anything other than the above-mentioned ones will go under the discussion of the director loan account. This money has to be repaid before the time of balancing the books. Here are some set scenarios to give you an idea that how you might need to use the director’s loan account. You aim to boost personal finances. To compensate for the expense of unexpected damage like car breakdown. You will require admin support for the director’s loan account for the seamless working of tax times. It is suggested that you better take it more seriously. Moreover, there is a requirement of a month gap between repayment of a loan and applying for another loan. HMRC is extra careful with this process. If they sense that you are trying to dodge the tax, they will charge you double. In simple words, we can say that a director’s loan account is a solution to tough times but not at all suitable for regular use. Tax On Director’s Loan Account You can save yourself from paying tax only if you return the amount within the time period of nine months and one day. This way you will not owe any tax at the year-end. Expect additional corporation tax to pay if you do otherwise. As a penalty, you have to pay a higher tax rate as well. If your loan amount is over £10,000, you will have to record this in benefits in kind. As well as this amount loan will be taxed. It is suggested to speak to a professional before you start the process of the director’s loan account. This will help you to understand that HMRC has made DLA salary nit the loan and the tax you will pay will be according to the rules. Final Thoughts Now that you have developed a better understanding of what is director’s loan account, finally, we can sum up the discussion. The director’s loan account is not a light process. The conditions belonging to this process are serious in nature. This is why is highly recommended to consult a professional before you aim to start the process. Otherwise, you will end up paying double what you were expecting. We hope these few minutes of reading will help you to make smart business choices. Disclaimer: The information about the director’s loan account provided in this article including text, graphics, and images is general in nature. It does not intend to disregard any professional advice.

Simplified Expenses – A Guide For Self-Employed Individuals!

George25/04/2022Accounting Issues , Business , Business Growth Ideas , Finance

Do you wish to turn the pain of tax returns and accounting into ease? There is actually an easy and useful way known as simplified expenses for self-employed individuals. We all can relate to the complications of reporting and bookkeeping when we are self-employed. In order to ensure the good management of small businesses, HMRC has introduced simplified expenses. It is used with a set flat rate and this ends up making the claiming process swift and easier than it ever was. Furthermore, you can use simplified expenses only when it suits your business requirements. Before we delve further into the discussion, let’s have a look at points of discussion in today’s article. Coffee, cookies, and taxes. What a perfect match. Get in the car, and reach our office today. Call us or email us to book your initial free one-hour basic consultation to discuss your requirements. We’ll make sure that we get all your documents submitted on time. Talk to our guys today! Introduction to Simplified Expenses Simplified expenses allowed the self-employed individuals to make accurate calculations of the allowable business expenses. Also, HMRC has set a flat rate for doing so. We all know that calculations of the exact expenditures in other traditional ways is a complicated process. This is to further bring to your knowledge that simplified expenses are purely for small businesses and self-employed individuals. The limited companies and business partnership companies are not allowed to use any of them. The list of allowable expenses for self-employed includes the cost in case you happen to live on your business premises, working from home, and the cost involves the vehicle used for business needs. Simplified expenses can be most suitable for people with straightforward tax affairs. As well as the individuals who carry out small businesses with a few business expenses. Several businessmen happen to travel a lot for their business demands. So, simplified expenses can be useful for such business travellers as well. Moreover, not everyone who belongs to the business world can get benefit from simplified expenses. In the following, there is a list of who actually can use simplified expenses. Business partners with the condition of no partner exist as a company. Sole traders Types Of Expenses The types of expenses that are allowable under the flat rates include the following: Working from home If you are living on the business premises Vehicle cost that is used for business traveling Get in touch, explain your requirements, or sign up online for customised services just like your business requires. Learn The Way to Use Simplified Expenses You might be wondering how to use the simplified expenses for your business needs. To make it a seamless working process, be vigilant about the following: 1- Record Keeping: A clear record maintaining for the hours of working from home, use of a vehicle for business travelling, and how people lived at the business premises. This will help to get the most benefit and ease down the processing. 2- Work Out Your Business Expenses: As the tax year ends, you can work out your expenses by using the flat rates for work from home hours, living at business premises, and vehicle mileage. 3- Self Assessment Tax Return: All the above-mentioned amounts should be included in the self-assessment tax returns. Simplified Expenses for Self-Employed Individuals You are self-employed and working from home, here is what you are required to do. You need to make accurate calculations for your allowable expenses and use the flat rate. The first need is to calculate the working hours from home every month. This further means that you are free from calculations of the proportion of business and personal use from the home. Internet and telephone bills are not added to the flat rates. Some other salient features at a glance include the following: Simplifies expenses are only allowable if your working hours are 25 hours or more in a month from home. The flat rate per month is £10 if the hours of business use per month are 25 to 50. The flat rate per month is £18 if the hours of business use per month are 51 to 100. The flat rate per month is £26 if the hours of business use per month are 101 or more. Stuck with your accounts and looking for a helping hand? How about you get our guys on a quick call. We love talking about taxes, payroll management and any opportunities that help you expand your prospects. Call us on 020 8686 8876 or email us today. Conclusion Now that you have developed a better understanding of Simplified Expenses for Self-Employed people, we can sum up the discussion by saying that this process can bring ease to accounting complications only if handled vigilantly. We hope these few minutes of reading will help you to make the right business decisions. Disclaimer: The information about Simplified Expenses for Self-Employed individuals provided in this article is general in nature and does not intend to disregard any professional advice.

All you Need to Know About Bereavement Support Payment

George25/04/2022Business , Business Growth Ideas , Dividend Allowance , Finance , Pension , Personal Tax

Are you struggling with the loss of your spouse or civil partner after their demise? In case you are residing somewhere in the UK, here is something with the discussion of Bereavement Allowance that can help. To bring ease to your financial worries that you might struggle without a partner, a bereavement support payment is the best possible solution. Before we delve further into the discussion, a basic understanding of what is bereavement support payment is a must. We offer our accounting services to self-employed individuals, freelancers, and influencers who are ready to run their businesses as self-employed. Do reach out to learn how we can help you. Basic Understanding of Bereavement Allowance: After the unfortunate loss of a civil partner, or spouse (husband or wife), an individual becomes eligible for the welfare benefit that is known as bereavement payment allowance. The best part of the bereavement allowance is that it does not depend on the amount of income a person earns or even if one works or not to make both ends meet. In other words, we can simply say that this payment support is not at all means-tested. This support payment was known by the name of widow’s pension. Moreover, the name has changed recently and with that, the way of claiming has also changed. The old system allows claiming for either widow’s parent’s allowance, bereavement payment, or widow’s pension. All of the above-mentioned allowances are now merged into bereavement payment support. The question that might pop up in your minds by now could be how much amount can I get by the support payment. Read the following to learn the details: An amount with a higher rate is £ 3, 500 and the lower rate is £ 2, 500. In a lump sum if you are the only individual. If you are the only one the instalment of 18 months will be £ 100. It varies again in the case of children and the amount of instalments becomes £350, moreover, this happens when you become eligible for the child benefit. Are you running a limited company? We have guaranteed satisfying offers to solve your accounting problems. Reach out to one of our professionals instantly to learn more. What are the Eligibility Criteria: There are certainly some conditions to be eligible for bereavement allowance and here are these listed for you: You are eligible for bereavement support payment in case your spouse or civil partner demised within the last 21 months. The individual must be under the pension age as the same person can’t get two support allowances at the same time. The allowance must be claimed within the time period of three months of the death of one’s civil partner or spouse. You will get the full payment in this way. Otherwise claiming within 21 months will get you fewer monthly payments. The bereavement allowance is eligible if the demise tragedy has happened after 6th April 2017 or on the mentioned date. National insurance is paid for 25 weeks or more in one tax year by your partner. In case you are a prisoner, consider yourself ineligible. You must be a resident in the UK or in a country that allows paying bereavement support payment. In case your spouse or civil partner died before 6th April 2017, there are chances that you can avail of Widowed Parent’s Allowance. Speak to one of our qualified accountants? Give us a call or request a callback. We are available for tailored services that suit your business’s unique requirements. The Process to claim Bereavement Support Payment: Here is a discussion of the terms and conditions about how one can claim bereavement support payment. The following are needed if you intend to make a claim: You are required to provide a national insurance number. Provide your bank account details or building society account details. The date on which your partner died is needed. National insurance number of your spouse or partner. Once done with the above-mentioned requirements, you can apply online, by telephone, or by post. Moreover, if you opt for applying online, it is important to know that applications are accepted in a limited number on a daily basis. Final Thoughts: Now that you have a basic understanding of bereavement support payment, the discussion can be summed up by saying that the amount of sorrow and loss is irreplaceable after the demise of a partner, however, the financial struggle that you might face after them can be taken care of in a good manner. We hope the development of the basic understanding of bereavement support payment along with the eligibility criteria and the simple explanation of the claiming process will bring a little ease to your struggle. Still can’t find what you are looking for? Arrange a meeting or request a callback to speak to one of our professionals to get instant help just the way you desire. Disclaimer: This article is based on general information about Bereavement Allowance and does not intend to challenge professional advice.

Limited Liability Partnership VS Limited Company – A Basic Guide!

George22/04/2022Business , Business Growth Ideas

Plenty of queries trigger your mind while you plan to set up your own company. An important one might make you wonder how you should plan the structure of your business. To choose the best structure for your business, you must learn a basic understanding of the popular structures like LLP (Limited Liability Partnership) and LTD (Limited Company). Also the Difference Between a Limited Liability Partnership and a Limited Company. Before we delve further into the discussion, let’s find out about the points of discussion which include the following: Limited Liability Partnership In A Nutshell An Introduction to the Limited Company The Difference Between a Limited Liability Partnership and a Limited Company Final Thoughts Limited Liability Partnership In A Nutshell LLP which is an abbreviation of Limited Liability Partnership is known to exist somewhere in between a private limited company and a traditional partnership. It is designed in a way that puts half waypoint between the two. A Limited Liability Partnership is a structure of the business that refers to a partnership between two individuals. Let’s take the example of two solicitors who plan to go into partnership with each other. This will make them inclined not to opt for the hiring and recruitment of several employees. This will more likely be a small-scale practice. Moreover, this is important to know that a Limited Liability Partnership is not favourable for all the business ideas. If the structure suits your business needs, there are chances to get benefits from a partnership. This will also limit your business exposure in several ways. An Introduction to The Limited Company When we talk about a limited company, it refers to a business structure that is designed in a way that makes it separate from its shareholders and owners. There are managers involved to carry out the business and they are normally called the directors. It is mandatory to get it incorporated at the Companies House in the UK. Stuck with your accounts and looking for a helping hand? How about you get our guys on a quick call. We love talking about taxes, payroll management, and any opportunities that help you expand your prospects. Call us on 020 8686 8876 or email us today. Difference Between Limited Liability Partnership and Limited Company In general, both Limited liability Partnership and Limited Company share several features that are similar in nature. The similarities include the incorporation requirement at the Companies House as well as a higher filing and reporting system. However, there exist many features that make both of the discussed structures different from each other. A few prominent and major differences are jotted down here for you which include the following: The limited company is limited by the factors like guarantees and shares. A limited company is bound to pay corporation tax for whatever profit it earns. Limited companies are required to have a registered address in the UK and a bank account. A limited company is allowed to give dividends to its investors as well as sell its shares for the sake of profits. Setting up a limited company can be done by taking yourself as a director or as a major shareholder. On the other hand: The set up of a limited liability partnership will require two individuals at least. Shareholders have limited liability in Ltd whereas the partners in the limited liability partnership agree on such terms and are not as bound as in Ltd. It is not allowable to sell shares in a limited liability partnership, neither they can receive capital. The structure of an LLP is enough flexible in nature and the changes can be made if required at any time. Final Thoughts Now that you have developed a better understanding of the Difference Between a Limited Liability Partnership and a Limited Company, we can sum up the discussion by saying that it is the requirement of your business need that will help to choose the right structure for carrying out the business. We hope these few minutes of reading will help you decide the best structure to carry out your business with seamless processing. Making the right business decision on the initial level means you are already halfway to making it a successful business journey. Can’t find what you are looking for? why not speak to one of our experts and see how we can help you are looking for. Disclaimer: The information about the Difference Between a Limited Liability Partnership and a Limited Company provided in this article is general in nature and does not intend to disregard any professional advice.

Importance of Cash Flow Management!

George21/04/2022Business , Business Growth Ideas

You are associated with a business that sells products or offers services, cash flow management is the reason that will bring you success or failure. All businesses consider it a fundamental factor to reduce the risk of cash flow problems. This became a major problem in the phase of COVID-19 as well that your most reliable customer happens to struggle with on-time payments. This article will not only explain what is cash flow management but also the key factors to meeting payment expectations during uncertain times. The lifeblood of a small business is to maintain a healthy cash flow. Before we indulge further in the discussion, here is a glance at the listed points of discussion in today’s articles. These include the following: What Is Cash Flow Management? Cash Flow Problems and SMEs Final Thoughts Stuck with your accounts and looking for a helping hand? How about you get our guys on a quick call. We love talking about taxes, payroll management and any opportunities that help you expand your prospects. Call us on 020 8686 8876 or email us today. What is Cash Flow Management? In simple words, cash flow is a process that allows you to track the record of incoming money of your business as well as monitor the outgoing. Property costs, bills, and salaries are some such examples that refer to the definition statement of cash flow. If the process of cash flow is done in an appropriate way, it allows for a clear picture of the cost and revenues. Moreover, the struggle of bill payments and profits will turn smooth. A good understanding of cash flow will bring the following with it: You will be able to forecast the profits of the company. You will be able to identify more and more opportunities for investment. A clear picture of revenues and cost. Key to bringing success to the business. Survival and growth of the business. It is vital to understand that unpaid invoices from customers can cause serious damage to the business. Even the increased revenue can not fill such a black hole that is because of the unpaid invoices. Cash Flow Problems and SMEs No matter whether a businessman is carrying out business on a large scale or small scale, all of them intend to avoid the problems that come with disturbing cash flow. The most affected by bad cash flow are the SMEs if the cash flow is negative. This is because large businesses have the option of funds to compensate for the gap of late payments. However, small businesses totally rely on the predicted monthly income. Indeed, their financial commitments are met in this way. In some of the worst cases, business owners have no choice but to use personal funds to float the business well. If the negative cash flow is for the long term, this will stop the growth of ambitious businesses. The business owners will be stuck with the monthly requirements than focusing on business valuation and seeking unique ways to grow. No wonder, late payments make the owners worry even when they are not at work. According to research, business owners worry about late payments even when they are off from work. Furthermore, with positive cash flow, a regular credit check on the suppliers and clients is possible. This will further help to focus on business growth and valuation. Coffee, cookies and taxes. What a perfect match. Get in the car, and reach our office today. Call us or email us to book your initial free one-hour basic consultation to discuss your requirements. We’ll make sure that we get all your documents submitted on time. Talk to our guys today! Final Thoughts Now that you have developed a basic understanding of what is cash flow and how negative cash can impact your business entity. We can sum up the discussion by saying that the common signs of future business difficulties should not be avoided. By having a clear cash flow, you will be able to avoid the negative impacts that are discussed above as well. We hope these few minutes of reading will help you to make the right business decisions. Get in touch, explain your requirements, or sign up online. Disclaimer: The information about what is cash flow management provided in this article including text, images, and graphics is general in nature and does n to intend to disregard any professional advice.

How to Pay Yourself as a Small Business Owner?

George15/04/2022Business , Business Growth Ideas

When you are associated with the business as an owner regardless of the size of your business, you definitely realise that it affects your business growth when you pay yourself for it. Further, you are even taxed on that pay as well. How to pay yourself as a business owner is something really important to understand to avoid any bad impact on your business growth. If you have not set up a specific type of structure, this makes you come under the sole trader business structure automatically. Further, in today’s article, we will talk about how to pay yourself as a sole trader, in partnership, and as a company. Before we delve into the discussion, let’s have a look at the point we have got covered here in the article. This includes the following: Learn to Pay Yourself as A Partner and Sole Trader How to Pay Yourself As A Business Owner or Company How much to Pay Fairly? Final Thoughts Stuck with your accounts and looking for a helping hand? How about you get our guys on a quick call. We love talking about taxes, payroll management and any opportunities that help you expand your prospects. Call us on 020 8686 8876 or email us today. Learn to Pay Yourself as A Partner and Sole Trader The simplest way that usually the sole traders and the individuals in partnership use to pay themselves is to withdraw the cash payment from the business account. These kinds of personal withdrawals from the business accounts are added to the list of profits. This amount is also taxed by the end of the tax year. It is also recommended to keep the amount in a separate account and keep adding chunks every month. This amount of separate money will help to pay the tax when it is due by the end of the tax year. How to Pay Yourself As A Business Owner or Company The usual practice of the company owners is to pay themselves as a salary amount. The process is carried out in the same way as it is in other jobs. In the business book records, the salary amount is added under the details of business expenses. The owner has to pay personal income tax on it as well. It is popular among small businesses and company owners that they withdraw the amount as salary and adjust it in the profits of the company. We get in touch with our expert accountant to obtain information and get a tailored kind of meeting schedule that suits your business requirements. How Much to Pay Fairly? Once you understand the suitable way to pay yourself for your business as an owner, the next step is to decide how much you must pay yourself. To seek a balance between the what is the requirement of household expenses and what is the need of your business is challenging. Let’s explain this in the following steps: Business Needs Maintain Balance Household Expense Maintain Balance: The negotiable balance between household requirements and business needs is important for your own tranquillity. Don’t try to avoid the give and take policy in the initial stage of your business. Business Needs: There must be enough cash to cover the business needs like reinvestments, expenses, and rainy day funds. A detailed record of the money you owe to others and the due expenses will help to withdraw the right amount of cash. A separate account must have a separate amount of cash for the taxes to avoid haphazard and hard days for your business. In the phase of business disruptions, the amount of around 90 days should be available for the safer side. From a reinvestment perspective, the required amount for the replacement tools, new ideas, or new hirings should be enough. Household Expense: The day to day living expenses come under the household budget. You should not forget to take care of regular expenses as well as the debt repayments and plan for retirement. Final Thoughts Now that you have developed a basic understanding of How to Pay Yourself As A Business Owner, we can sum up the discussion by saying that it will depend on the nature of your business type. However, seeking that balance point between your business needs and household requirements will bring you tranquillity. We hope these few minutes of reading will help to make the right decision for the business and flourish it like never before. However, you can always seek more professional advice as well. Getting our professional advice will simply help you to focus on your business and we will do the rest. Get in touch now! Disclaimer: The information about How to Pay Yourself As A Business Owner provides in this article including the text, graphics, and images is general in nature and does not intend to disregard any professional advice.

What is Bookkeeping and How it is Important for your Business?

George07/01/2022Accounting , Accounting Issues , Business Growth Ideas

You most probably have heard the term bookkeeping, but do you know what exactly it is. Even in the world of business, you might not be fully aware of what is bookkeeping, how does it work and why does it matter? Bookkeeping helps you with budgeting, preparing tax returns and keeping your business organised. It also affects your cash flow and overall finances. So, bookkeeping is essential for your business to keep track of your finances, otherwise, things may get tricky to handle. Therefore, you need to understand: What is bookkeeping? Why does it matter? How it is important for your business? What are good bookkeeping practices? If you want a professional accountant and bookkeeper for your company, we can help you. Our bookkeepers and accountants at CruseBurke are qualified and cost-effective. We save your time, money, and stress by handling all your finances and business problems in no time. Contact us now! What is Bookkeeping? Simply put, bookkeeping is the process of recording the financial transactions of the business on a regular basis. Transactions include sales or purchases, receipts or payments. It helps you to easily understand and track what money is coming into your business as earnings and what is going out as spending. Typically, it involves: Recording financial transactions Preparation of financial statements Bank reconciliation Posting debits and credits Producing invoices Handling payroll Maintaining and balancing historical accounts, general ledgers, and subsidiaries Why Does it Matter? Balancing your books or bookkeeping is essential to make key operating, and financing decisions. Without bookkeeping, a business would not know its current financial status as well as the transactions that occur. It is also important for external users like investors, financial bodies or government agencies. With bookkeeping, they can get access to reliable information to make investment or lending decisions. Once bookkeeping is completed, the records are passed on to the accountants to prepare financial accounts and file financial reports to HMRC and other agencies for tax returns and VAT. The basic way to record financial transactions is known as single-entry bookkeeping, while double-entry bookkeeping is more complex and sophisticated. Both bookkeepers and accountants use the financial records to prepare profit and loss statements to manage cash flow and to ascertain whether the company is making a profit. How Bookkeeping is Important for your Business? Bookkeeping is essential to carry out your financial tasks in an effective way. Whether you need to prepare your tax returns, want to keep your business organised or want to manage your cash flow, bookkeeping is crucial. You might fall into trouble if you don’t keep track of your finances. Here are the main benefits for which you need to do bookkeeping: Maintain organised reports Keep you prepared for taxes Help you to budget accurately Business analysis and decisions making Get you ready for the future Provide peace of mind Track business’s performance Help with financial management Improve cash flow Track profit and growth Provide a snapshot of your business Ensure regulatory compliance Stuck with your accounts and looking for a helping hand? How about you get our guys on a quick call. We love talking about books, accounts, taxes and payroll. Call us on 020 8686 8876 or email us today. What are the Good Bookkeeping Practices? Here are the good bookkeeping practices you need to consider: Keep all your receipts and invoices Start your bookkeeping early Keep business accounts separate from your personal ones Use debit or credit card to keep records Use digital bookkeeping software Keep your records updated Get Help From Our Bookkeepers! Now that you know what is bookkeeping and why does it matter. Remember that not everyone is an expert to manage the books of a business. A tiny mistake can cost you a hefty sum. To avoid these mistakes, allow us to do the books of your business accurately, get in touch with our bookkeepers and save your time, money and stress involved in recording and managing books. If you’re looking for someone who can provide your bookkeeping services in Croydon, to help your business succeed and attain a competitive edge, get in touch with us today to see how we can help! Get an instant quote from our accountants for the services you’re looking for! Disclaimer: This blog provides general guidance on what is bookkeeping.

What is Cash flow – A Basic Guide!

George27/10/2021Business , Business Growth Ideas , Finance

It is important for every company to maintain a good cash flow(CF). If you do not have a good cash flow, it would be difficult to purchase materials, pay salaries, and settle bills. So, when running your company, it is the most crucial thing to look into. Therefore, this blog will let you know: what is cash flow? How to work it out? What can you do to increase your cash flow? So, let’s start! Need an accountant to manage your financial affairs, look no further other than CruseBuke! We provide tailored accounting and tax services for you at a reasonable price. Contact now! What is Cash Flow? The balance between your company’s incoming and outgoings over a specific time is called cash flow. It includes any current money and the money coming in and going out. But, it does not include investments or assets. How to Workout Cashflow? In order to workout cashflow the formula is as follows: Cashflow= (Cash + income) – expenses For instance, suppose if you want to calculate your CF for September. In sales, you make £5,000 and spend £3,000 on new stock and other expenditures for that month. In your business bank account, you had £3,500 at the start of the month. This implies that your companys’ cash flow for September will be £5,500. Putting these values into the formula to make it understandable: Cashflow = (Cash + income) – expenses Cashflow = (£3,500 + £5,000) – £3,000 Cashflow = £8,500 – £3,000 Cashflow = £5,500 Unable to calculate your Cashflow? Let us handle it! Why is Cashflow Important? The CF shows the financial status of a company, so we can say that it is like its pulse. Your company will have a positive CF if it has more incoming money than money going out. And, the CF will be negative in case the outgoing money is greater in amount than the money coming in. A positive CF implies that your company will have money to invest or restock in essential outlays in the coming days. On the other hand, if your company has a negative CF, it implies that your company will quickly run out of cash and not be able to pay for the required things. Save your time, money, and energy by letting your financial affairs to CruseBurke. Feel free to reach out today! How can I Increase my Company’s Cashflow? You can increase it by increasing your company’s sales, minimising its expenses, or doing both. However, in case you want your company to continue improving, you won’t want to minimise your expenses. In addition, without increasing your market investment, you are unlikely to maximise your sales. It is better to look around for short-term financing in this circumstance—many financing options like merchant cash advances, small business loans, business credits, and invoice financing. Every type works differently and has its pros and cons. Quick Sum Up Now that you know what is cash flow and why it is important for your company. We would sum up our blog by saying that it is essential to manage your company’s CF as it directly impacts its growth. Moreover, a positive CF helps to enhance confidence in the company and puts you in a strong place to deal with lenders and get more discounts from suppliers. Therefore, if you can not manage your CF efficiently, then ask an expert to do this for you! CruseBurke offers affordable financial services! Get an instant quote today! Disclaimer: This article intends to provide general information based on what is cash flow.

What is the Allotment of Shares & What are the Reasons for Issuing Shares?

George04/10/2021Business , Business Growth Ideas , Limited Company

You may want to change your company’s share structure by adding a new shareholder, or changing the current percentage of shares between the shareholders; this is where the allotment of shares comes into play. In the allotment of shares, the company issues and allots shares to new or existing shareholders. The shares can be allotted to both individuals or corporate entities. But what is the reason for allotting shares? To know about it, read this blog till the end. Talk to one of our chartered accountants in Croydon about the online accountancy services we provide. We are just a click away! If you are confused about the process of shares allotment and you want an expert service for it, then feel free to contact us! What is the Allotment of Shares? By the company, the process of issuing shares and then allotting them to new or existing shareholders is known as the allotment of the shares. New Shares are usually allotted when new business partners are introduced in the company. Most of the companies consider issuing and allotment of shares as the same thing because they follow the same procedure. But keep in mind that these two are different terms unless they follow a similar procedure. What are the Reasons for Issuing Shares? The main purpose of issuing shares is to raise funds for a business. Some of the essential reasons to issue new shares are as follows: For the repayment of the company’s borrowings. In order to raise funds for a company. To raise funds for development or for a new project. At the time of incorporation of a company. To raise funds to purchase a new company or a business. To repair the trade continuation and damaged balance sheet of small businesses at the time of financial crisis. When shares are granted by a business as a share option to employees or directors. When a senior employee becomes a director or a new director joins the company. The Process of Allotment of Shares To allot shares to the new shareholders, all the companies need to perform few specific steps. The following is the procedure for allotting shares. 1) Confirmation to Shareholders ID & Shareholdings It is mandatory to confirm the existing shareholdings, the shares you are proposing to introduce, and your shareholder’s final shareholding structure. The confirmation of the following details is necessary in order to allot a share to a new shareholder. Name Date of birth Relation with other shareholders Residential address Nationality Proof of the ID 2) Holding a Board Meeting To hold a board meeting is essential for shares allotment. The changes are required to be approved in the board meeting, after confirmation of the shareholder’s ID and shareholdings. The information regarding the shareholders and the revised share structure should be included in the minutes of the board meeting. And, it has to be kept secure in the records of a company. These details are then forwarded to the Companies House and they can be utilised as evidence during an audit. 3) Updating Companies House for New Shares Allotment After the allotment of the shares, the details are required to be reported to the Companies House within one month of allotment. This is done by completing & filling the statement of capital form (SH01). The form can be easily filled out on the website of Companies House. This form is utilised to update the share structure of a company to Companies House. The SH01 form is used to report the number and value of newly allotted shares to Companies House, but it does not include the names of shareholders — that is reported in the CS01 (Confirmation Statement). 4) Issuing of New Share Certificates According to the new share structure, the new share certificates are issued to the shareholders after updating the Companies House of the allotment of the new shares. The details about shareholdings are included in a share certificate. Moreover, the certificates that are issued previously will be cancelled automatically. 5) Updating the Company’s CS01 (Confirmation Statement) with New Share Totals Updating the CS01 with the Companies House is mandatory for you. The new share structure in the company will be displayed after updating it. In the company’s confirmation statement, you must include the details of a new shareholder. This is because the SH01 form does not contain any details that are related to a new shareholder. Quick Sum Up We hope now you have understood what is the allotment of shares, the reasons for issuing shares, and the process of share allotment. Go through the above-mentioned procedure while allotting shares. We recommend you consult with a chartered accountant as the process of issuing and allotting shares is quite technical without the help of a professional. CruseBurke provides an expert service for the allotment of shares, providing all the required minutes, forms, and documents with practical advice! So, contact us now! Disclaimer: This article intends to provide general information on allotting shares.