Thursday, 27 February 2014
Monday, 3 February 2014
Tax return not what you expected.
It is thought approx 1.5 million people have still not done their tax
return for 2012/3 for various reasons. Why does the self-assessment tax return
take so many by surprise. Its a bit like Christmas we all know what date it’s
going to be on but unless we are all organised we are never ready for it. I
know several sole traders – not my clients – who have turned round and said they
did not know how they were paying their tax demand as it was more than they
expected. With some they had not taken into account the payment in advance
they are having to make but others had not realised how much they had earned.
Firstly as
a business you should be keeping track of your turnover and your expenses.
Secondly if you do your books – or get a bookkeeper to look at them - on a
regular basis then you have a rough idea what the payment is likely to be.
Considering there is nine months from the end of the tax year till the return
has to be done there is sufficient time to get the return done and if necessary
set up an agreement with HMRC to get the monies owed paid.
Wednesday, 1 January 2014
Tuesday, 15 October 2013
Expanding my business network
This is a one-off request as normally I use this page just for blogging about what I hope are interesting and useful business aspects. I am trying to expand my twitter and Facebook presence and would appreciate people liking or following me on either.
The links are
Please note you can also follow my blog posts by adding your email in the box on the top right.
Thank you in advance.
Liz
The links are
Twitter: https://twitter.com/OakBookkeeping
Facebook:
https://www.facebook.com/OakBookkeepingServicesPlease note you can also follow my blog posts by adding your email in the box on the top right.
Thank you in advance.
Liz
Sunday, 13 October 2013
Money makes the world go round
Although we may not always use hard cash those words are still as true as when Liza Minnelli sang them in Cabaret. It's said that more companies go out of business from lack of ready cash than from lack of sales, although without the sales the business isn't going to go anywhere anyway.
It's ok being asset rich but if you cannot convert this to ready cash when required then you have a problem. Looking at it simply if you think about buying stock on thirty days payment then selling - at a profit - but also on thirty days payment. When it comes to paying the supplier it looks as if you have done well but you have not yet received any payment so have no money to pay the supplier. Your supplier stops your credit and you can't get any more supplies, your purchaser eventually pays but is not coming back to you as you couldn't guarantee their next order. End result you go out of business.
This is why a cash flow forecast is important to any business and is simple to create. Start off with your projected sales, list your fixed and variable overheads, deduct one from the other. Link this with the cash in your bank and bring the balance forward to the next month. The varied costs will change and the sales will probably not come in exactly to the date payment is expected but if you allow for this then you will be prepared for anything that happens.
Keeping track as to whether your actual figures vary to your forecasted is important. Allow for seasonal adjustments. This will always be an on-going project but it is one of the most important tasks necessary to stay in business.
If you have any questions on this please contact me on liz@oakbookkeepingservices.co.uk
www.oakbookkeepingservices.co.uk
Adding value to your business. Based in Reading, Berkshire.
It's ok being asset rich but if you cannot convert this to ready cash when required then you have a problem. Looking at it simply if you think about buying stock on thirty days payment then selling - at a profit - but also on thirty days payment. When it comes to paying the supplier it looks as if you have done well but you have not yet received any payment so have no money to pay the supplier. Your supplier stops your credit and you can't get any more supplies, your purchaser eventually pays but is not coming back to you as you couldn't guarantee their next order. End result you go out of business.
This is why a cash flow forecast is important to any business and is simple to create. Start off with your projected sales, list your fixed and variable overheads, deduct one from the other. Link this with the cash in your bank and bring the balance forward to the next month. The varied costs will change and the sales will probably not come in exactly to the date payment is expected but if you allow for this then you will be prepared for anything that happens.
Keeping track as to whether your actual figures vary to your forecasted is important. Allow for seasonal adjustments. This will always be an on-going project but it is one of the most important tasks necessary to stay in business.
If you have any questions on this please contact me on liz@oakbookkeepingservices.co.uk
www.oakbookkeepingservices.co.uk
Adding value to your business. Based in Reading, Berkshire.
Friday, 27 September 2013
Income over £50K and receiving child benefit? Only a few days left to register
If you earn over £50,000 and have received Child Benefit Payments since 7 January then you must register for Self Assessment by 5 October 2013 to pay the charge.
To find out if you're liable, what this means to you and what you need to do see the link http://www.hmrc.gov.uk/childbenefitcharge/ for more information.
Wednesday, 18 September 2013
RTI still a learning curve
http://oakbookkeepingservices.co.uk/ An independent bookkeeper in Reading.
From accountancylive.com: http://bit.ly/19d3aTJ
This update advises that SME's are still trying to get to grips with RTI. After setting up a new client's payroll this month I have to agree. The Payroll run once I had obtained all relevant information was no problem as expected however when I came to do the RTI part that's when the fun started.
This was the first time I had set up a new client halfway through the tax year so expected a few problems. Thankfully a couple of hours later after much to-ing and fro-ing it was all up and running with HMRC finally happy.
Can't wait to see what the next query on RTI is going to be. Unfortunately like most things you don't know what you don't know till you need to know it.
From accountancylive.com: http://bit.ly/19d3aTJ
This update advises that SME's are still trying to get to grips with RTI. After setting up a new client's payroll this month I have to agree. The Payroll run once I had obtained all relevant information was no problem as expected however when I came to do the RTI part that's when the fun started.
This was the first time I had set up a new client halfway through the tax year so expected a few problems. Thankfully a couple of hours later after much to-ing and fro-ing it was all up and running with HMRC finally happy.
Can't wait to see what the next query on RTI is going to be. Unfortunately like most things you don't know what you don't know till you need to know it.
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