10 Apr 2023
As a business owner, it’s vital that you keep on top of the latest industry trends, not just within your industry but in the world of small- and medium-sized business as a whole. After all, being aware of the latest trends can help you stay ahead of the competition, identify new opportunities, and ensure that your business is operating as efficiently and effectively as possible.
So, what are some of the most important small business trends that you need to be aware of right now?
1. The rise of the ‘gig economy’
One of the most important trends affecting small businesses right now is the rise of the so-called ‘gig economy’. This refers to the growing trend for businesses to use freelance or contract workers, rather than full-time employees, to get work done.
There are a number of reasons why this trend is on the rise. For businesses, it can be a more cost-effective way of getting work done, as they only have to pay for the work that is actually carried out. This helps them to build a leaner organisation with fewer HR requirements, saving time and energy as well as money.
2. Investing in Financial Advice
The current economic climate is one that is increasingly uncertain, which is why good financial management is more important than ever. If you don’t know how to manage your money well, the chances are that you’re wasting a good chunk of it.
One way to ensure that your business is making the most of its finances is to invest in financial advice. A good financial advisor can help you to understand where your money is going, where you could be making savings, and how to best invest your money for the future.
A financial advisor will also help you to understand how cost-effective your organisation currently is and enable you to get to grips with your numbers. From there, you’ll be able to make decisions to increase your profitability and overall financial health.
3. Short-form video content
Like it or not, short-form video content isn’t going anywhere. Apps like Tiktok and Instagram have popularised this format and, as a result, people’s attention spans are shorter than ever before.
If you want to reach your target audience, then you need to be creating content that is easy for them to consume. That means making videos that are short, punchy, and to the point.
4. The importance of data
Data is becoming increasingly important in the world of business. Having access to the right data can help you to make better decisions, understand your customers better, and improve your overall performance.
However, collecting and managing data can be a challenge, especially for small businesses. This is why many businesses are now turning to data management services, which can help you to collect, organise, and analyse your data more effectively.
5. Hybrid Work
In the wake of the pandemic, many workers are returning to the office – but they don’t want to do so every single day.
Working from home and in office each has its pros and cons, so the answer for many businesses is to find a happy medium with what’s known as a ‘hybrid model’. This involves a mix of office-based and remote working, giving employees the best of both worlds.
This approach also saves businesses money as they don’t need to provide office space for every single employee every single day. They can move to a smaller office and introduce hot-desking, or even take on a flexible contract with a co-working space, depending on the size of the business.
Final Thoughts
As always, there’s a lot happening in the world of small business. To stay ahead of the curve, it’s important to keep up with the latest trends and developments. By doing so, you’ll be able to adapt your business to the changing landscape and make the most of new opportunities.
Book a free consultation here, to discuss your needs and how we can help you manage your business finances, including small business trends.
5 Apr 2023
As a small business owner, you may be used to taking the DIY approach. After all, you’re most likely a marketer, financial director, HR manager and payroll administrator, to name but a few of your many responsibilities. However, although your business may be small, there’s one area that really does call for professional help – and that’s filing your tax return. Let’s take a look at four of the main reasons you shouldn’t do your taxes yourself this season.
1. You’re Not a Numbers Person
We’d all like to believe that we’re good at absolutely everything, but the truth is that not everyone is good with numbers. If you don’t have an affinity for mathematics then doing your taxes yourself is probably not the best idea.
Even if you’re competent enough at everyday calculations, taxes are a whole different ball game. Calculating your taxes is a very complex process; there’s a reason that chartered accountants have to spend so many years in training.
A simple mistake on your tax return can cause you to pay the wrong amount of tax and even result in harsh penalties that can seriously threaten your small business. It really isn’t worth the risk.
2. It’s a Waste of Your Time
Taxes are notoriously time-consuming and as a busy business owner, your time is a precious resource that you can ill-afford to waste. After all, the time that you spend doing your taxes is time you can’t spend growing your business. It’s important to sit down and think about how much your time is actually worth before you squander it all trying to figure out your taxes. Think of time in the same way as you think of money, and learn to invest it wisely.
3. Tax Laws Change Constantly
Tax laws change all the time and it can be incredibly difficult to stay on top of all the latest rules and regulations – especially when you already have a business to run. When tax season rolls around, the chances are you won’t know about all of the latest changes which could lead to you making mistakes on your tax return or missing out on new opportunities to save money.
It’s an accountant’s job to keep up to date on any changes and then take advantage of these opportunities to save you money, so that you pocket as much of your income as possible. Remember that a quality accountant will always save you more than their wages.
4. The Internet is Full of Misinformation
In this day and age, the DIY approach to any task usually involves several Google searches. The problem is that although the internet is a wonderful resource, it’s full of incorrect or outdated information. As discussed, tax laws and deductions change all the time, so the article you’re reading may no longer be accurate. Furthermore, tax rules vary hugely from country to country, so you might end up making a mistake because you read advice that doesn’t apply to your business.
Sifting through all of this information and checking for veracity is a hugely time-consuming task, so you’re far better off working with a tax professional who has relevant experience within your specific industry. That way, you can have your questions immediately answered by someone who knows what they’re talking about and won’t have to waste time falling down Google rabbit holes.
Summary
The needs of every business are different, but if the above issues resonate with you then you should consider hiring an InterTax accountant when tax season rolls around. Consider us an investment in the financial health of your business, who will undoubtedly save you a significant amount of time, money and stress in the long run.
Book a free consultation here, to discuss your needs and how we can help you.
1 Apr 2023
Managing your expenses is tremendously important for ensuring that your small business stays profitable and flush with cash. It’s important to keep a very close eye on your expenses to ensure that you stay within budget and don’t go into the red. Here are seven top tips for managing your expenses as a small business owner
1. Understand Allowable Expenses
Allowable expenses are costs you can deduct from your tax return. It’s important that you understand what your allowable expenses are to ensure that you track them carefully. Examples of allowable expenses include rent, staffing costs, utilities, insurance, raw materials and tools.
2. Track Everything from the Beginning
You will probably incur costs before your business officially opens, so be sure to keep a clear record of these. You will be able to claim them back later and knock a significant amount off of your tax return. It’s also a good idea to open a separate business bank account so that you can easily keep a log of all your business transactions without confusing them with personal costs. There are also many accounting and expense tracking applications that are very helpful for this because they allow you to stay organised and see a detailed breakdown of your spending.
3. Set a Weekly Expenses Budget
You may have budgeted for your expenses over the year, but big numbers can often feel abstract. Breaking your budget down into weekly goals gives you a better idea of how much you can afford to spend and allows you to identify where changes need to be made. This will also help you to understand how you are performing against your budget and put policies in place to keep your finances under control.
4. Take a Little and Often Approach
If you only update your books once every few months, you might find yourself buried beneath a pile of paperwork. It’s better to take the little-and-often approach to updating your records and do it daily or weekly. If you need to, set aside a block of time each week to do so. It’s also a good idea to install your accounting software app on your phone so that you can access information on the go.
5. Create a Cash Reserve
As a business owner, you will find yourself facing unforeseen costs at one point or another and it’s important to be prepared. Out-of-the-blue expenses such as equipment replacements or repairs shouldn’t devastate your business or blow your budget. It’s a good idea to set some cash aside to cover unforeseen expenses so that you can protect your budget with a buffer and sleep easier at night.
6. Shop Around
One way to make managing expenses easier is to find cheaper alternatives. It’s often worth shopping around and trying to negotiate better deals with suppliers to ensure that you’re not overpaying for goods and utilities.
7. Encourage Remote Working
Allowing employees to work remotely has some serious benefits for business owners. Global Workplace Analytics found that 60% of employers identify cost savings as a major benefit of allowing employees to work from home. Expenses such as utility bills, cleaning services and even refilling the coffee jar are greatly reduced when employees work from home more often. Furthermore, research by Stanford University found that employees are 13% more productive when working from home, so employers get more out of their staff whilst saving money.
Summary
Every business owner must manage their expenses carefully. It’s important to understand which expenses are allowable and track them even before the business officially opens. Setting a weekly expenses budget and taking a little-and-often approach to bookkeeping also goes a long way towards better expense management. Finally, shopping around, creating a cash reserve and allowing employees to telecommute at least some of the time can also help to make your expenses feel more manageable.
Book a free consultation here, to discuss your needs and how we can help you manage your business finances, including expenses.
31 Mar 2023
Bookkeeping is essential for tracking and understanding your business’s financial performance. It helps you better understand where your money is coming from and where it’s going, and empowers you to make informed decisions that will help your business succeed. It also helps you stay compliant with tax laws, manage budgets, and make better decisions about how to allocate resources.
Let’s take a deeper dive into how bookkeeping can be beneficial for your business.
1. Better Budgeting
Bookkeeping can help you create and manage accurate budgets. It allows you to assess how much money is coming in from customers, expenses, and other sources, and gives you a better understanding of where your business stands financially. With this information, you can create more effective budget plans that will help you jettison your business to success.
2. Accurate Financial Reports
Bookkeeping allows you to easily generate accurate financial reports that give you a better understanding of your business’s financial performance. This information can then be used to make more informed decisions about how to allocate resources, spot financial trends, and identify areas where you can save money.
3. Tax Compliance and Savings
Bookkeeping helps you ensure that you are in compliance with tax laws by providing accurate financial information. This allows you to avoid costly mistakes and potential penalties from the IRS and other regulatory agencies. Additionally, bookkeeping can help you save money by enabling you to take advantage of deductions and other tax benefits that apply to your specific business.
4. Cash Flow Management
Bookkeeping also helps you manage your cash flow more effectively. With accurate records of expenses and income, you can better plan for cash flow needs and avoid potential problems such as overdrafts or insufficient funds. This will help you make sure that your business has the money it needs to succeed.
5. Confidence
One key benefit of bookkeeping is that it can give you peace of mind. Knowing exactly where your business stands financially will give you the confidence to take risks and make decisions that will help your business grow and succeed.
6. Setting Targets and Goals
It’s difficult to set specific goals when you have no idea what your numbers are, but bookkeeping can help you identify your current financial performance and help you come up with realistic targets to strive towards. You’ll also be able to accurately measure your progress along the way because you’ll have the data you need to track your progress.
7. Organised Records
Unorganised records are a ticking time bomb. Bookkeeping helps your business by keeping records organised and up to date, enabling you to quickly access the financial information you need when you need it. This makes it easier to answer questions, identify trends, and make decisions that will help your business succeed.
If you let your records become too chaotic, you can be sure that your business won’t reach its potential. That’s why bookkeeping is so essential to the success of any business. With accurate and up-to-date financial information, you’ll be able to make better decisions and take advantage of every opportunity that comes your way.
Final Thoughts
As you can see, bookkeeping is an essential component of a successful business. It can help you stay compliant, manage budgets, and make better decisions. With accurate financial records, you’ll be able to take your business to the next level.
If you need help getting your bookkeeping in order, consider working with us to ensure accuracy and consistent record-keeping. With the right help and strategies in place, you can be sure that your business will be on its way to success. Book a free consultation here.
15 Mar 2023
Self-employment can be a great way to make money and have more control over your own life, but having to manage your taxes yourself can be a headache and a half.
You probably already know that you can claim tax relief for certain business expenses, which can save you a hefty amount of cash. However, knowing what you can and can’t claim tax relief on can be tricky, especially if you’re new to self-employment.
In this blog post, we’ll run through some of the most common expenses that you can claim tax relief on as a self-employed person in the UK.
We’ll also dispel some of the myths around what you can and can’t claim for, so that you can ensure you’re not missing out on any deductions while staying legally compliant.
How Does It Work?
As a self-employed individual, you are responsible for paying your own income tax and National Insurance contributions (NICs). This means that you can also claim tax relief on certain business expenses, which can reduce the amount of tax you have to pay.
You only pay tax and NICs on your profit, not your gross revenue. So if you turn over £50,000 but have £20,000 in costs, your profit is £30,000. You’ll be taxed and pay NICs on this £30,000, not the full £50,000.
This is where claiming tax relief comes in. Claiming tax relief doesn’t mean that you get the full value of the item back, as some people mistakenly believe. Instead, it means that you can deduct the cost of the item from your taxable profit.
For example, say you’re a self-employed graphic designer and you spend £500 on a new computer. You can claim tax relief on this expense, which means that it will be deducted from your taxable profit. So if your taxable profit is £30,000, it will now be £29,500. You’ll only pay tax and NICs on this reduced amount.
What Can You Claim Tax Relief On?
Now that we’ve covered the basics, let’s take a look at some of the most common expenses that you can claim tax relief on as a self-employed person in the UK.
As we mentioned before, you can claim tax relief on most business expenses. This includes the cost of equipment, office supplies, travel, and even some of your own training and development costs.
Office Equipment
Office equipment includes computers, printers, scanners, and furniture.
But let’s say you buy a laptop and use it for both work and personal purposes – what then?
You’ll need to estimate how much of the time you use it for work in order to calculate how much tax relief you can claim. For example, if you use it for work 50% of the time, you can claim 50% of the cost as a business expense.
The same goes for phone and internet usage.
Electronic Communications
If you use your personal phone or internet for work purposes, you can claim a percentage of the cost as a business expense. You may purchase an entirely separate phone for work, in which case you can claim the full cost as a business expense.
The same is true for your broadband or mobile data usage. If you use your home broadband for work, you can claim a percentage of the cost as a business expense. You can calculate this by working out how many hours per week you use it for work, and then claiming that as a percentage of the total cost.
Let’s say your broadband costs £50 per month and you use it for work 20 hours per week.
There are 168 hours in a week, so 20/168 = 11.9%
11.9% of £50 is £5.95.
£5.95 x 12 = £71.40 per year.
Professional and financial services
It’s certainly advisable that you hire an accountant or bookkeeper to help with your self-employment taxes. The cost of this service is tax deductible.
You can also claim for the cost of other professional services, such as legal advice.
If you have a business bank account, you can claim for the cost of any transaction fees. This might include overdraft fees, credit card charges or interest on business loans or lines of credit.
However, if you use your personal bank account to manage your business finances, you don’t qualify for this relief – yet another reason why you need to separate your business and personal accounts.
Staffing Costs
If you have employees, you can claim for the cost of their salaries, National Insurance contributions (NICs), and pension contributions.
You can also claim for the cost of any training or development courses that you put your staff members on. This includes first-aid training, health and safety courses, and industry-specific training.
Travel Costs
If you travel for work, you can claim the cost of your transport as a business expense. However, the travel must be wholly and exclusively for business purposes.
This includes the cost of public transport, fuel, and parking. You can also claim for the cost of accommodation and meals if you’re travelling overnight.
What Can’t You Claim Tax Relief On?
In a nutshell, you can’t claim tax relief on anything that isn’t considered a business expense.
This includes:
- Home renovations. You can’t do up your home and try to pass it off as a business cost simply because you work from home. If you operate a business out of a commercial premises, you can claim for the cost of renovations there.
- Personal travel. You can’t claim for the cost of travel that isn’t related to your business, even if you sometimes work while you’re travelling.
- Meals and entertainment. You can only claim food and drink if it’s outside of your usual working routine. If you go on a business trip, for example, you can claim for the cost of your meals. But if you entertain clients in a restaurant near your office, you can’t claim that as a business expense.
Final thoughts
Understanding what you can and can’t claim on your tax return can be tricky, especially since there are some grey areas. This is why working with an accountant is a sage investment, because they can help you to ensure that you’re claiming everything you’re entitled to while staying within the bounds of the law. In the long run, this can save you a lot more than their fee!
Discuss your needs during a free consultation, available to book here.
13 Mar 2023
Team building is an essential step in creating a positive company culture that will encourage employee productivity and retention. Summer is the perfect time of year for fun team-building activities that will get your employees out of the office and bonding with each other. Let’s take a look at the best summertime team-building activities for small business owners.
1 – A Scavenger Hunt
A scavenger hunt is a great way to get your employees working together in teams while also getting them out into the community. You can hide clues around town and have your employees solve them as a team. This is a great way to promote teamwork and problem-solving skills.
2 – Hiking
Spending time in the great outdoors is a fantastic way for your staff to bond with each other. Plan a day trip to a nearby hiking trail and pack a picnic lunch to enjoy at the top of the hike.
Hiking builds morale and fosters a sense of co-operation as team members help each other along the way. It also enables employees to see each other in a different light, as they work together to overcome obstacles and reach the summit.
Remember to take plenty of pictures to document the fun!
3 – Escape Room
Racing the clock to solve clues and escape from a room is a great way to encourage teamwork and quick thinking. Employees will need to work together in order to solve the puzzles and make their escape. This is a great activity for building communication skills and promoting teamwork.
There are many escape rooms located in towns and cities across the country. Do some research to find one that would be a good fit for your team.
4 – Sports Day
Remember sports day at school? Remember how it brought everyone together, across different year groups and social cliques?
The same concept can be applied to team building for your small business. Plan a series of fun and competitive games that will get your employees moving and working together. This is a great way to promote physical activity and healthy competition.
5 – Quiz Night
Speaking of healthy competition, a quiz night is another excellent way to get your employees working together. You can divide your staff into teams and have them compete against each other in a friendly quiz. This is a great way to promote team spirit and to encourage employees to learn more about their colleagues outside of work.
6 – Capture the Flag
Capture the flag is a classic team-building activity that can be played indoors or outdoors. This activity promotes teamwork, communication, and strategic thinking. It is also a lot of fun!
To play, you will need two teams and two flags. The objective of the game is to capture the other team’s flag and return it to your own base. This game involves a lot of fun, laughter and co-operation, and thus is bound to bring your team closer together.
7 – Host a Problem-Solving Contest
Hosting a contest is a great way to encourage employees to come up with new and innovative ideas. This is a great activity for promoting creativity and out-of-the-box thinking.
To get started, simply choose a topic or problem that you would like your employees to solve. Then, have each team come up with a solution. The winning team will be the one with the most creative and innovative solution.
Conclusion
These are just a few of the many summertime activities that you can use to promote teamwork and build morale in your small business. Get out there and start planning your next team-building event!
Which of these activities would you like to try with your team?
