Are you a business owner that is on top of managing your own bookkeeping but it is stealing your time away from doing what you love?
Or perhaps you:
Think you're doing everything right, but aren't sure
Have no clue and pretend it doesn't exist
Wait until the deadline and stress yourself out
None of these are the best position to find yourself in, and there are solutions to prevent the stress and anxiety that may build up in managing all these submissions and legal compliance.
Why put yourself through the sleepless nights, anxiety or even penalty fee's that can impact your personal life and business operations.
By signing up to Auxilium Finance book keeping and accountancy subscription we can help eliminate all that stress. We cover both Middlesbrough and the local area, as well as the whole of the UK, supporting businesses of all sizes.
If you don't have your own software that isn't a problem. As an accredited practitioner and partner with FreeAgent we can provide you with your own cloud based software that is available to use where ever you are in the world; even on the go with your mobile app.
FreeAgent gives you the ability to manage your bank accounts, cashflow, tax deadlines, invoicing, bills and cash management all in one app. We can even provide this to you for free if you have a business account with Mettle, Natwest, RBS, RBU.
To help you get started we have highlighted some essential accounting terms for you:
This is the first 12 months your accounts are prepared for tax purposes. It starts from the date your business started trading and is also referred too as your "Year End".
Relating to your management accounts, it is a specific period you are reviewing for insights. Such as comparing Sales from Q1 2022 to Q1 2020.
Tax Year / Period (Basis Period):
HMRC year runs from 6th April - 5th April.
Depending on your Accounting Year, you may generate two HMRC calculations.
eg. Accounting Year runs 1st January - 31st December 2022.
HMRC will calculate 1st January - 5th April as tax year 2021/2022 and 6th April - 31st December as tax year 2022/2023.
This is all costs associated with running your business and generating revenue. All "business expenses" can be deducted from revenue to calculate profit or loss for business use.
Allowable Business Expenses:
Specifically relates to expenses you can deduct from your business for tax purposes. Anything not allowed must be added back when preparing accounts for tax purposes.
Capital Expenditure (Fixed Assets):
Capital expenses is when items are bought for business use and are to be used over a period of time by the business.
eg. Computer bought in January 2022 for £3000 can be capitalised for 3 years.
Year 1 - 2022 - would show an expense for £1000 and a Fixed Asset for £2000
Year 2 - 2023 - would show an expense for £1000 and a Fixed Asset for £1000
Year 3 - 2024 - would show an expense for £1000 and a Fixed Asset for £0.
HMRC offers tax relief for assets bought to be used over a period of time by the business.
Currently until 2023 the AIA (Annual Investment Allowance) is £1m.
Keeping up to date
If you are unsure on where you stand or what service you require, contact us for a free conversation to see how we can best support or advise you.
Follow us on LinkedIn, Twitter, Instagram and Facebook by selecting the buttons below to ensure you keep up to date with the latest news and information from Auxilium and the world of accounting.