For many people who run a small business, finance isn’t their specialism. It is also one of those jobs that can be easy to put off, but then lead to stressful or challenging times when your tax return needs to be filed.
An article for Nav recently offered some top tips for small businesses about how best to organise their finances and keep on top of everything.
If you often find that paperwork and bills relating to your finances stack up, set aside a dedicated time each week to go through them, file your paperwork and pay any invoices you need to deal with.
Alternatively you could get some help through bookkeeping services in High Wycombe, or wherever you live, to ensure you stay on top of your paperwork and don’t find yourself in a mess at the end of the tax year.
Another piece of advice is to make sure that you have a separate business account and don’t simply pay everything into your personal bank account. This can make it confusing when you’re working out what you’ve earned, as well as what expenses you can claim at the end of the tax year.
This can also help when it comes to planning for annual business expenses, like your tax payments. By keeping your business money separate, you can ensure you’re saving an appropriate percentage each month to go towards your tax liabilities and other business bills.
Of course, 2020 has been particularly challenging for many small businesses, with the government providing support in the form of payments to those who are self-employed to help them weather the Covid-19 storm. You may want to get help with your tax return this year to make sure you claim for all the available support if your business has been hit by the pandemic.