What is a profit & loss report? Why do I need one? What does it tell me?
A profit and loss report is likely the most important report to your business on a day-to-day basis, you may be sent a copy by your accountant, or your accounts software may produce one for you, but what is it?
You’ve probably heard of it, HMRC may have written to you, it’s likely popped up on your social media. But what is it?
MTD isn’t actually new, most VAT returns have had to be submitted digitally since 2019, and payroll records since 2013, what is new, is that HMRC is asking that all returns, including for sole traders are sent digitally, to help make it easier for individuals and businesses to keep on top of their tax affairs.
At a very simple level, it’s how HMRC wants you to report your income on a quarterly basis. Your returns will need to be sent digitally, via accounts software, helping you keep accurate and timely accounts. Eventually, tax legislation will exclude paper records entirely.
At face value, it seems like a great idea.
If you’re a small business owner with just a few employees, you probably think that hiring a payroll specialist is an expense that you can avoid.
You feel that you can handle it yourself. You have the best intentions to keep your staff paid right and on time. What could go wrong, right?
Well, lots actually. Below are the reasons why you should stop doing your own payroll.
So you have a great business idea and are convinced you can make it work, but you don't have much capital to get your business off the ground. Juggling existing financial commitments such as a mortgage or bank loans could put a squeeze on your business plans. But it is possible - a growing number of entrepreneurs are using creative thinking and shrewd planning to get businesses off the ground with the smallest budgets.
Starting your own business is an amazing thing to do but it is also notoriously risky. There is a lot to think about when you first start out on your own and it can be tempting to put accounting on the back burner, but that would be a huge mistake. Good accounting is crucial to the financial health of your business and mistakes can be devastating, especially in the early days. It is important to know which mistakes to avoid, ensuring that your small business is around for years to come.
Your invoice is key to getting paid promptly & keeping an ongoing relationship with your clients. Even simple things can make a huge difference, whilst there are things you must include on your invoice, there are other things you can do that will make a difference