January 04, 2021
Despite it being a year since the virus was first spotted, COVID-19 is still very much a part of our lives and we have had to adjust ourselves to this new and masked ‘normal’. However, the pandemic and the resulting lockdowns has struck the death knell for many a business. Over 87 percent of businesses (especially small businesses) have found themselves struggling to make ends meet. And there is no dishonour in this as the pandemic situation was so sudden and strange that it is a wonder the economy has managed to survive as much as it has. With every penny counting it is no surprise that small business owners want to make the most of their resources. This is where the importance of good accountancy services come in as an accountant can prove valuable in more ways that one in helping lifting your business from the ground.
Doshi Accountants has analysed ways by which an accountant can prove useful in boosting the nosiness of small businesses. After all, proactiveness is what is required in these times of stringent measures. So, what can one do to keep business afloat? Well, here are a few steps:
Effective tax planning means tax saving!
Saving on tax is one avenue where your accountant’s advice can really save you the pounds. With self-assessment around the corner get your return filed and also now start planning for the year ahead if you have already been putting off things. For effective tax planning the game plan needs to be set from the beginning but this does not mean that you can salvage things a bit at the end. Reporting the right expenses and losses to the HMRC can prove vital in improving the situation and in the reclaim of any additional taxes that you have paid.
Many businesses have been forced to shut down business entirely which is why they have also been unable to retain employees. Such losses need to be reported during the self-assessment. Furthermore, though shut down on their premises, businesses have still found a means to stay afloat through other avenues that have been illustrated further down in this article.
Paying more tax than required does not make sense especially since even the government wants tax deduction to be fair and equal. Thus, who better than a seasoned expert to give you a proper one-oh-one on how you can save on unnecessary tax bills? This pandemic situation is a time not only to save but also to get money back innovatively to manage the surprising expenses that have cropped up during Covid. Therefore, saving on your tax return is something that you should indeed be considering and with the deadline just a month and a few days away it is better to start planning now than make haste.
Knowing your final transactions
Alexander once said, “Know yourself!” and that proves to be the right mantra for the current pandemic situation, with a slight twist of course to – Know your finances. Having an idea about the trends of your purchases and expenses can prove to be invaluable in the present scenario. Consider this, as it is you need to maintain the books either way. Thus, why not benefit from proper bookkeeping by actually having a look at reports? Your accountant can help you with proper cash flow management and thus, you will be made better aware of the present scenario.
Knowing your expenses will help you in weeding out those that can be avoided. It will also aid you in taking stock of your inventory as you will be aware of the recent purchases made.
Good Bookkeeping is the first step towards efficiency
Apart from tax services, another important area in which your accountant is sure to be able to assist is in bookkeeping. Last minute jobs are such a good alternative here as it is better to have someone on the job and ready to update things. Proper bookkeeping software goes a long way in ensuring that things are done efficiently and with less consumption of time.
Aside from accounting why not consider: Takeaways, gift-cards and bespoke kits
With restaurants, pubs, spas and the like all forced to keep down their shutters one can understand how worried business owners are when they consider their plunging sales and profit margin. Here, having a look at how others (especially, the competition) are dealing with the situation in the market not only would help in providing insight – you can also get inspiration.
Restaurants can still encourage takeaways while offering discount coupons as well. Most suppliers are proving gift cards in a bid to improve business while others like parlors and hairdressers being unable to offer the service are providing bespoke kits that are tailor-made to suit their client’s requirement.
Can accounting work well for startups?
Accounting for startups is of as much importance as that of small businesses and other companies. The reason it is all the more crucial here, is that at the initial stage it is better to be clear on factors like efficient accounting and bookkeeping software and the like. Having things accurate and ready is what makes filing self-assessment and MTD easy which can otherwise become very harrowing and complicated. Knowing their weekly spending will be helpful in preventing waste of capital as well as make it easier to set goals.
Doshi Accountants aims to give its clients quality work delivered on time. Throughout the pandemic situation to provide seamless and unbroken situation was a challenge that has been gamely met. Be it filing self-assessment tax returns, MTD or furlough – if you want one provider who can cater to multiple needs simply think accounting – think Doshi Accountants.