Maximizing Your Business Success with the Right Accountant
As a business owner, you want your business to succeed, and your accountant should actively contribute to that success. The relationship with your accountant holds paramount importance because they provide a valuable service that should benefit your business.
An accountant serves as more than just a number cruncher. They should act as trusted business advisers, tax planners, bookkeeping support, and payroll preparers, adapting their involvement to your business’s needs.
Utilizing an accountant represents a wise investment in your business. They offer the best opportunity for your business to thrive, grow, and achieve success.
Accountants must stay up-to-date with changing accounting guidelines and tax legislation. This ensures they can help you meet deadlines and filing requirements, thus minimizing penalties and fines.
Here are five crucial questions to ask your accountant to stay ahead of the game:
1. What do I need to know about Making Tax Digital?
The government’s plan, Making Tax Digital (MTD), aims to modernize the UK’s tax system. All VAT-registered businesses must now use MTD-compatible digital software for filing VAT returns. This plan also extends to Income Tax Self Assessment (ITSA) for sole traders and property owners, requiring fully digitized accounting records and quarterly updates to HMRC.
2. What do I need to know about the basis period reform?
HM Revenue and Customs (HMRC) is altering how sole traders and partners allocate trading income to tax years, impacting non-March year-end accounting periods in 2023/24. Limited companies are unaffected.
3. Is it possible to become paperless within my business?
Modern accountancy practices offer cloud-based expense recording tools and invoice software, promoting a paperless approach. Count’s network of accountants helps businesses transition to online software like QuickBooks, streamlining operations for Making Tax Digital compliance.
4. How can I improve my cash flow?
Efficient online software facilitates cash flow management by tracking money movements, sending payment reminders, and providing live bank feeds. Creating cash flow forecasts and budgets helps anticipate financial fluctuations and manage expenses effectively.
5. Am I claiming everything that I can?
Businesses can claim allowable expenses related to their trade, which vary based on their structure and specialization. Ensuring accurate expense recording, including allowable costs, is crucial for effective business management and proper reporting to HMRC.
Your accountant stays current with available tax reliefs and can identify potential claims to optimize your tax position. If your accountant cannot address these questions, consider seeking assistance from us to propel your business towards its goals. Reach out to us at 0203 909 7705 or use our online contact form to connect with our accountants.