4 Reasons Not to DIY Your Tax Return For Your Small Business

4 Reasons Not to DIY Your Tax Return For Your Small Business

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 accountant when tax season rolls around. A great accountant is an investment in the financial health of your business, and will undoubtedly save you a significant amount of time, money and stress in the long run.

Are You Ready for your Tax Return?

Are You Ready for your Tax Return?

For small business owners, tax season can be a stressful and daunting time of year. It makes sense that you’d rather not think about it, but as a bookkeeper, every year I see business owners feeling stressed as the season approaches because they know deep down that rushing things and leaving it to the last minute can lead to mistakes and penalties. That’s why it makes sense to get ready for tax season right now. In this blog post, we’ll explore why now is the time to get your self-assessment tax return done, instead of waiting until the deadline of January 31st. We’ll offer tips on how to outsource your bookkeeping, why the deadline is not a target, and how it’s crucial to know your numbers to help motivate you to complete your tax return.

You don’t want to be doing your tax return over the holidays.*

It’s no secret that the holidays are a busy time of year – especially for small business owners. With the added pressure of balancing work and family commitments, it’s easy to put off sending your tax return until January. However, with the deadline of January 31st fast-approaching, don’t let yourself end up cramming your tax return in over the holiday period. Instead, tackle it now and enjoy a stress-free break.

The deadline is a deadline, not a target.

Many small business owners falsely believe that the filing deadline of January 31st  is a “target” rather than a firm deadline. This could not be further from the truth. The HM Revenue and Customs (HMRC) takes non-compliance very seriously, and failing to submit your tax return by the deadline could result in a fine. Get it done and off of the list as soon as you can.

Outsource your bookkeeping so you don’t need to do it.

One of the best ways to get your tax return completed now is to outsource your bookkeeping. If you don’t have the time or expertise to handle this task in-house, think about getting the help of a professional bookkeeper or accountant. Outsourcing your bookkeeping can not only save you time and energy, but it can also help you stay organised and ensure your tax filings are completed accurately and on time.

Here’s the unexpected benefit

Many small businesses see the tax return as the ultimate goal, but at InterTax we know that the most important reason to get your tax return completed now rather than later is to know your numbers. It gives you time to save for your tax bill if you haven’t already (talk to me about this, I can help), and it is key to knowing your numbers.

Your tax position reflects your business performance for a certain frame of time, and we expect you want to know how you’re performing in as near to real time as possible. Understanding your financial situation is vital in running a successful small business. By knowing your financial figures in-depth, you can make informed decisions for your business, plan for the future, and stay on top of your finances.

Conclusion

Getting your tax return done as early as possible is crucial. Of course, this avoids unnecessary added stress, mistakes and penalties, but it means you have feedback on how your business is doing. At InterTax we encourage our clients to file their tax returns as early as possible and we’d love to chat to you about how we can help you with yours. You can reach out to us by clicking https://intertax.co.uk/book-consultation/

So why wait? Let’s get your tax return sorted now so you can move on to more exciting things.

Useful Accounting Tips to Grow Your Small Business

Useful Accounting Tips to Grow Your Small Business

Growing your small business is no easy feat, but great accounting practices can make a world of difference. Robust financial management is the key to building a thriving business and ensuring its long-term success.

As a small business owner, you need to be on top of your finances at all times. This can be a daunting task, but there are some useful accounting tips that can help you stay on track.

1. Keep accurate records

Let’s start with the basics: accurate record keeping is absolutely essential for any business, large or small. Good accounting practices require that you track all of your income and expenses so that you can get a clear picture of your financial situation. This will allow you to make informed decisions about where to allocate your resources and how to grow your business.

2. Write a detailed budget

A budget is a critical tool for any business, and it’s especially important for small businesses. A well-crafted budget will help you keep track of your income and provide a roadmap for your spending. It can help you to avoid overspending and ensure that you are making the most efficient use of your resources.

3. Use accounting software

There is a wide range of accounting software available on the market, and it can be a valuable asset for a small business. This type of software can automate many of the tedious tasks associated with bookkeeping, freeing up your time to focus on other aspects of your business.

Using accounting software will also help you to get more out of your relationship with your accountant because they will be able to access your financial information more easily and have more time for analysis and advice.

4. Stay on top of invoicing

Invoicing is a crucial part of running a small business, but it can be easy to let this important task slip through the cracks. It’s important to stay on top of your invoicing so that you can keep cash flowing into your business.

One way to stay on top of your invoicing is to use invoicing software. This type of software can automate many of the tasks associated with invoicing, making it easier to stay on top of this important task. The less money you have tied up in accounts receivable, the healthier your cash flow will be.

5. Set clear financial goals

It’s important to outline specific financial goals so that you know exactly what you’re working towards. Your goals will give you something to strive for and help to keep you focused on the task at hand.

Some financial goals that you may want to set for your small business include:

  • Increasing your sales by a certain percentage
  • Reducing your expenses by a certain amount
  • Achieving a positive cash flow
  • Growing your business to a certain size

6. Understand Your Tax Liability

Taxes are a fact of life for businesses of all sizes, but it’s especially important for small businesses to understand their tax liability. This can be a complex topic, but there are some key things that you should know.

You need to be aware of the different types of taxes that your business may be liable for, such as income tax, sales tax, and payroll tax. It’s important to understand the requirements for each of these taxes so that you can ensure that you are compliant.

You should also know how to take advantage of any tax breaks or incentives that may be available to your small business. These can save you a significant amount of money, so it’s worth doing your research.

Final Thoughts

Having a solid understanding of accounting principles will help you to make informed decisions about the financial management of your small business. These tips will give you a good foundation on which to build, but there is really no substitute for hiring a professional accountant with a deep understanding of the ins and outs of your industry.

Book a free consultation here, to discuss your needs and how we can help you grow.

4 Reasons Not to DIY Your Tax Return For Your Small Business

4 Reasons Not to DIY Your Tax Return For Your Small Business

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.