Despite their doors now open again, many businesses are still unfortunately experiencing downtime.
But this extra time doesn’t have to be a bad thing. In fact, it could be a great opportunity for the long-term success of your company.
There’s never been a better time than the present to sort out your accounts and get ahead. Here, we explain exactly why you shouldn’t miss out on the chance to tick this task off your to-do list…
Maintain cash flow
Having a positive cash flow for as long as possible is crucial, especially in the current climate. Yet you can’t know if you’re doing all you can to ensure this without an accurate overview of the figures. And the only way to do that is to take stock of your accounts as soon as you can.
Armed with this information, you can then analyse your income and outgoings, and see where you could save or make money. This will also help you to figure out (and plan for) future costs – like your Self Assessment tax bill, for example.
One way you could increase the amount of money in the bank is to be more tax-efficient. If you’re not already doing so, taking advantage of expenses – like your staff and marketing costs – can be a great way to reduce your tax liability.
You could also register for a VAT scheme or claim tax reliefs. If you’re going to make a loss in the tax year, there’s the option to actually offset this against your profits.
And then there is when you pay your tax – VAT quarterly return payments for the period 20th March 2020 to 30th June 2020 had the option to be deferred until 31st March 2021, and the second payment on account deadline has been delayed until 31st January 2021. Whilst you’ll still have to pay these taxes, deferring payment may help you to maintain a positive cash flow in the short-term.
Get ahead of deadlines
On a similar note, it pays to get ahead of deadlines when it comes to accounting tasks such as the Self Assessment tax return. So many busy small business owners underestimate the amount of work involved and opt to leave it until the last minute, resulting in significant stress – as well as potential inaccuracies and penalties.
However, you can avoid this altogether by using the time that’s finally available to you. This is especially a good idea given that, come January, you may find business is better than ever; with lockdown a distant memory, you might have even less time than you envisioned. And remember: just because you file your tax return early, you won’t need to pay your resulting bill until the usual deadline.
Sort your accounts with Nabarro Poole
Have the time to take care of your accounting responsibilities, but don’t have the expertise? That’s absolutely fine – your area of business is your forte, not complex sums and legislation. But that’s where we come in. We provide a wide variety of services, including budgeting and forecasting. We’ll ensure your business and its finances are primed for whatever lies ahead.
We’d be more than happy to help you with whichever accounting service you require during this tough time. Speak to our friendly team today to get started.