16 Dec 2024
For many sole traders and small business owners, the self assessment tax return deadline is a dreaded period filled with stress, last-minute calculations, and sometimes, unexpected surprises. But it doesn’t have to be this way. With a little forward planning and regular financial habits, you can transform the way you feel about your tax return.
Here’s how you can make tax time less stressful:
Understand Your Tax Obligations
At InterTax we believe that knowing exactly what you owe is crucial to planning ahead for the deadline. You’ll need to set aside money for both income tax and National Insurance contributions. If you’re earning above the VAT threshold, you’ll also need to account for VAT payments.
We help our clients by giving them an indication of how much money they should be setting aside each month. We also encourage our clients to get the information we need to us as early as possible so that we can get your tax return filed in good time, meaning that you know exactly how much you need to pay and when.
Set Up a Dedicated Tax Savings Account
One of the best ways to ensure you’re financially prepared is by setting up a separate savings account specifically for your tax payments. Each time you get paid from clients, transfer a percentage of your earnings into this account.
Some bank accounts have savings spaces which are ideal for putting money aside for tax, VAT and for a rainy day!
A good rule is to set aside 20-30% of your income for taxes. This way, you’ll always have funds available when your tax bill arrives.
Track Your Income and Expenses Regularly
Staying on top of your finances throughout the year will prevent any nasty surprises at tax time. Use accounting software to log your income and expenses monthly. This will give you a clear view of your profitability and help you forecast your tax liability.
We would advise keeping on top of your bookkeeping on at least a monthly basis to ensure consistency and accuracy. The more often you do it the more accurate it will be to get real time information on your finances.
Produce quarterly reports
Once a quarter, set aside time to review your finances. Look at your income, expenses, and how much you’ve saved for taxes. This regular check-in helps you identify any gaps early, so you can adjust your savings rate if necessary.
At [BUSINESS NAME] we offer a Management Reports service which allows us to give our clients an insight into their finances and Cash Flow Forecasts which can predict trends in order for you to take action ahead of any challenges you may face. This can be crucial when growing your business.
Automate Where You Can
Automating your savings can be a game-changer. Set up automatic transfers from your business account to your tax savings account. This takes the decision-making out of your hands and ensures you’re consistently putting money aside.
You can also automate reminders for tax deadlines or set up recurring tasks in your calendar for financial reviews.
Work with a Bookkeeper
If managing your tax savings and financial records feels overwhelming, consider partnering with a bookkeeper like ourselves. We’ll help you stay organised, ensure you’re meeting all your obligations, and provide peace of mind throughout the year.
Use Tax Time as a Business Health Check
Tax time doesn’t have to be purely transactional. Use it as an opportunity to reflect on your business performance. Are you meeting your income goals? Can you reduce expenses? Regularly saving for taxes puts you in control, so you can make informed decisions about your business’s future.
January doesn’t have to be stressful. By developing a habit of saving consistently throughout the year, you’ll not only avoid the last-minute scramble but also gain greater control over your finances.
Ready to take the stress out of tax time? Get in touch today.
3 Aug 2024
Running a business is no small feat. Business owners face numerous challenges daily, from managing finances to ensuring smooth operations, staying competitive, and planning for growth. We know, because we’re business owners too!
Here, we’ll explore some of these common challenges and discuss how outsourcing, automation, and getting the right support can help overcome them.
Financial Management
One of the most significant hurdles for business owners is managing finances effectively. This includes budgeting, forecasting, cash flow management, and handling taxes. Mismanagement can lead to severe financial problems, even bankruptcy.
Just doing the bookkeeping for compliance purposes won’t help your business to succeed. A clear vision and understanding of your finances is key to a successful business. At [BUSINESS NAME] we come across so many businesses who have buried their heads in the sand for so long. Not addressing issues with cash flow for example can cause many implications for your business.
When you decided to be a business owner you didn’t think you’d be playing the role of a bookkeeper too and you don’t have to! Finding a bookkeeper who knows your industry and can support you with your business processes is the solution to your financial management challenges.
At [BUSINESS NAME] we support our clients to ensure that not only are they compliant but they have full visibility of their finances, allowing them to plan for the future. We leverage the latest technology to ensure that your processes are as streamlined as possible, giving you vital time back and reducing the risks of human error.
Time Management
Do you often feel like there’s just not enough hours in the day? As business owners we play multiple roles in our businesses which can often lead to a feeling of overwhelm and if left untreated this could lead to burnout.
Consider using time blocking techniques so that you can manage chunks of tasks at a time and use task management software such as Asana [OR ADD ANOTHER SOFTWARE OF YOUR CHOICE]. Software like [ASANA] will help you to manage your tasks better, giving you visibility of what needs to be done each day. It’s also a great tool for when you start building a team so that you can delegate tasks accordingly.
If you’re not yet in a position to employ a staff member, think about outsourcing the tasks you find time consuming or that you don’t enjoy. We can’t be perfect at everything! Getting the help you need can make all the difference to your mindset, health and wellbeing and the motivation you have for your business.
Keeping Up with Technology
I know it can be difficult to find the time to research the latest software, but knowing how to leverage the software available to you will give you back so much valuable time. Use technology to your advantage by using it to its full potential. Consider using automation such as Zapier to complete repetitive jobs. All these small 5 minute jobs add up and the more of these you can automate the more time you’ll get back to spend on areas of your business that need you most.
If you’re wanting to scale your business it’s important to overcome all of these challenges along the way. By surrounding yourself with positivity, developing a network of support around you, whether that be outsourcing tasks or just having someone there for you as a sounding board, can make all the difference to your growing business.
You don’t have to face these challenges alone. Business owners who ask for help, get to their goals much quicker, setting the stage for sustainable success and long-term growth.
Are you ready to make the changes you need for your growing business?
Book a call>>>
13 Jul 2024
When you think about planning a holiday, you probably picture setting a budget, researching destinations, and making sure every detail is covered to ensure a smooth trip. The same principles apply to budgeting for your business. However, just as you might hire a travel agent to take care of the intricate details of your trip, hiring a bookkeeper can streamline your financial planning process, giving you the peace of mind to actually enjoy that much-needed holiday.
Set Your Destination
Every great journey starts with a destination in mind. For your business, this means setting clear financial goals. Whether you aim to expand your operations, invest in new equipment, or build a cash reserve, having a target helps you chart your course. A professional bookkeeper can assist in defining these goals based on your financial health, market conditions, and long-term vision.
Determine Your Budget.
Just as you wouldn’t embark on a holiday without knowing your budget, you shouldn’t run your business without a clear financial plan. A bookkeeper helps you determine your budget by analysing your income sources and allocating funds to different areas of your business. [AT BUSINESS NAME] we ensure you cover all essentials whilst keeping some funds aside for unexpected expenses.
Research and Plan
In the same way you research hotels, flights, and activities for your holiday, a bookkeeper conducts thorough research to help you plan for business expenses. We will look into your business expenses and provide you with a detailed financial roadmap. We may even be able to help you save some money along the way!
Track Your Spending
On holiday, you keep track of your spending to avoid blowing your budget. Similarly, a bookkeeper monitors your business expenses, ensuring you stay on track. We provide regular financial reports, helping you understand where your money is going and making adjustments as necessary.
Review and adjust as needed
Just as you might adjust your holiday plans when new opportunities arise or costs change, your business budget needs to be flexible. A bookkeeper helps you adapt to these changes, reallocating funds based on actual performance and emerging opportunities, ensuring your business remains agile and responsive.
Enjoy the Journey
The ultimate goal of planning a holiday is to enjoy it. With a well-managed budget and the support of a bookkeeper, you can enjoy the journey of running your business. There will be no need for burying your head in the sand any longer when it comes to your business finances. Financial stability and accurate bookkeeping bring peace of mind, allowing you to focus on growth and innovation.
How Outsourcing Bookkeeping Frees Up Your Time.
Outsourcing your bookkeeping to InterTax not only ensures accuracy and compliance but also frees up valuable time. Time that you can use to plan your next business move or, even better, take a much-needed holiday without the constant worry of your business’s financial health. With a professional handling your books, you can relax, knowing that your financial affairs are in expert hands.
Budgeting is indeed like planning a holiday. It requires careful planning, tracking, and flexibility. By hiring a bookkeeper, you ensure that your business’s financial journey is as smooth and enjoyable as a well-planned trip. So, take the step to outsource your bookkeeping, gain true financial visibility, and most importantly, give yourself the freedom to enjoy that holiday you’ve been longing for. Your business and your well-being will thank you.
13 Jul 2024
As June rolls around, the anticipation of summer brings excitement for us at [YOUR BUSINESS NAME] but we also sense the touch of anxiety that business owners are feeling. Balancing the demands of your business with the desire to enjoy the sunshine can be challenging, and it makes sense. You have a lot going on. We’re here to help you enjoy the best summer you’ve ever had, and in this article, we’re pleased to share five ways to prepare for the summer, ensuring both your business and personal life run smoothly.
1. Organise Your Finances
Before diving into summer activities, take some time to organise your business finances. Review your cash flow, update your bookkeeping records, and ensure all invoices are up-to-date. Late payments can disrupt your cash flow and create unnecessary stress, so consider implementing a more efficient invoicing process. This will help you stay on top of your financial situation and avoid any surprises during the summer months.
Tip: Consider using bookkeeping software to automate invoicing and payment reminders. This will save you time and reduce the chances of late payments.
2. Plan for Staff Holidays
Summer is a popular time for employees to take holidays. To ensure your business continues to operate smoothly, create a holiday schedule. Encourage your team to book their holidays in advance, allowing you to plan for any necessary cover. This will help prevent staffing shortages and ensure everyone can enjoy their time off without disrupting business operations.
Tip: Use a shared calendar or project management tool to keep track of holiday requests and ensure there’s always adequate cover.
3. Streamline Your Operations
Efficient operations are key to a stress-free summer. Evaluate your current processes and identify areas where you can improve efficiency. Implementing new software or tools can help automate repetitive tasks, freeing up your time to focus on more strategic activities. Streamlined operations will not only improve productivity but also make it easier to manage your business while enjoying the summer.
Tip: Look into tools like project management software, CRM systems, and bookkeeping software to help streamline your business processes.
4. Schedule Downtime
While it’s important to keep your business running smoothly, it’s equally important to schedule some downtime for yourself. Taking regular breaks and enjoying summer activities can boost your mental health and productivity. Plan your time off in advance and communicate it to your team and clients. This will allow you to recharge and return to work with renewed energy and focus.
Tip: Consider setting up an out-of-office email response to inform clients of your availability and ensure they know when to expect a response.
5. Let your Clients know
Summer is a great time to strengthen relationships with your clients. Send out a newsletter with updates on your business, share useful tips, and let them know about any special summer promotions. How about a summer drinks reception at your offices? It’s a great way to keep your business top-of-mind, even during the slower summer months.
Tip: Use social media to share behind-the-scenes glimpses of your summer activities, showcasing the human side of your business. This can help build rapport and trust with your clients.
Final Thoughts
Preparing for summer doesn’t have to be overwhelming. By organising your finances, planning for staff holidays, streamlining operations, scheduling downtime, and engaging with clients, you can enjoy a smooth and enjoyable summer season. Taking these steps will help you make the most of the summer months without sacrificing your business’s success.
Enjoy the season while keeping your business on track. With a little planning and preparation, you can achieve both. Reach out to book a free call with our team Here’s to a productive and enjoyable summer!
21 May 2024
If there’s one figure you know in your business, I expect it’s your bank balance. And it’s a pretty important one.
But alone it doesn’t give you any information about what’s happening in your business. At InterTax we regularly speak to our clients about their cash flow forecast because it’s such a crucial part of the financial picture. Cash flow hasn’t traditionally been part of the service business owners expect from their bookkeepers and accountants, but as technology has changed, it’s so simple for us to plug your accounts data into a forecasting tool and give you even deeper, real-time insights into what’s happening in your business. But why would you need that?
In this article, I’ll share what your cash flow can tell you about your business.
What do you mean by Cash Flow?
Cash flow is essentially the net amount of cash and cash equivalents moving into and out of your business. It’s a critical indicator of your business’s financial health. Understanding the nuances of your cash flow can help you make informed decisions, predict issues in the future, and run a more financially stable business. Here are some of the insights that your cash flow can provide about the overall health of your business:
Operational efficiency
If you have more money in than out, you have positive cash flow. This indicates that your business is generating more money than it is spending. This is often a sign that your business operations are running smoothly and efficiently. Conversely, a negative cash flow might indicate operational challenges, such as high costs, poor inventory management, or inefficient processes that could be draining your resources.
Financial solvency
If you haven’t got cash, you can’t meet your financial obligations – no matter how profitable you are on paper. A consistent positive cash flow suggests that your business is solvent and can comfortably pay its debts, salaries, and other operational expenses on time. If you find your business frequently struggling to cover these expenses, there’s a problem – and your bookkeeper or accountant is a great person to help.
Growth potential
This isn’t about how much money you have coming in, it’s about where your money is coming from. Analysing where your cash comes from can tell you a lot about your business’s growth potential. For instance, reinvestment of cash into business activities like marketing, product development, or expansion can indicate a strategy geared towards growth. If your cash flow is healthy, you’ll have more flexibility to invest in new opportunities, if it’s not, you won’t.
Investor and lender attractiveness
If you’re looking for debt, investment, or even to sell your business in the future, your cash flow is vitally important in making your business attractive to investors and lenders. They often look for businesses with positive cash flow as it suggests a lower risk of investment.
Market conditions and consumer demand
Your cash flow can also reflect broader market conditions and demand for your products and services. For example, seasonal variations in cash flow might be normal in your industry but variations out of the norm could indicate a need for better cash management or a need for a change to your business model to accommodate changes in the market.
Conclusion
At InterTax the reason we care so much about your cash flow is that it shows the long-term viability of your business. Patterns of steady, positive cash flow over a long period are a good indicator that your business model is sustainable. On the other hand, if cash flow problems persist, it might be a sign that you need to make fundamental changes.
And if you’re anything like our clients, you’d like to have foresight of problems ahead as soon as you possibly can.
We regularly review our clients’ cash flow to equip them with the knowledge to make proactive adjustments when they’re needed. We want your business to be robust and responsive to internal and external pressures. If you’d like to talk more about your cash flow, book a call with us today, here.
