Small businesses are a key part of the UK economy, and while many existing firms have faced challenges amidst the recent pandemic, new companies have sprung up to offer a wide arrange of innovative products and useful services.
Whether your company has been weathering a stormy chapter in its history or has been born out of the changing economic climate, we’ve assembled some useful financial advice for small places to help.
Pay yourself a salary
As a small business owner, you should pay yourself wages, even if they’re exceptionally low while you use the majority of capital to build your company. The advantage of paying yourself a nominal amount to cover your National Insurance is that it can make your wages tax-free.
Always separate your financial interests
From your company goals to your accounts, keeping personal and business interests is essential for any small business. If you have long-term personal goals, such as retirement or planning out your children’s further education, it is key that these remain isolated from the ambitions you have for your enterprise.
Ensuring that your financial records keep your personal and business records separate will make it far easier to calculate the tax you owe each year, and it will also make certain you never miss claiming for expenses that are required for your firm.
Establishing a company bank account and business credit card will also allow your business to build a credit score, uncomplicated by your personal finances. This can be useful if you need to secure additional funding for your business in the future.
Keep track of your expenses
For a small business to be successful, it must be profitable enough to generate the revenue required to cover its operating expenses. It is vital that you keep track of what it costs to keep running your firm with detailed bookkeeping, so you can track and understand your expenses. Develop a company budget and work with it.
If you struggle with administrative tasks or numbers, it makes good sense to enlist the help of professional services. A wise business owner understands that it is necessary to outsource parts of their operation when they don’t have the necessary skillset in-house.
Using a professional accountancy service to handle your day-to-day finances can free up your time, while its expert advice can allow you to plan out a road map for your business’ future.
Do you need an accountant for your small business in Goole?
At Adaptive Accountancy, we work closely with our small business clients to create bespoke packages that only include the services they require. Whether your firm needs help with its yearly tax returns and advice on receiving a rebate or just daily bookkeeping assistance, we can be relied on for support. Our accountants are available to offer guidance outside of the regular nine-to-five working week, so if you have a question that needs answering fast, whether it regards payroll or tax planning, we’ll be here.
Contact our expert accountancy service today with any questions or queries.