Dear Small Businesses, Here are 4 Accounting Tasks That Must be Done on a Weekly Basis

Dear Small Businesses, Here are 4 Accounting Tasks That Must be Done on a Weekly Basis

Keeping the track of accurate and up-to-date bookkeeping and financial data is crucial for businesses of all sizes, whether large, medium or small. These financial data determine the success of any business. There are some incidents in the past that some of the well-established businesses across the world have been doomed for the reason that their accounting processes were not up-to-the-mark, disorganized or incorrect. Not only that, but some small businesses these days are prone to poor accounting procedures, and if you are one of them, then it’s time to wake up.

Most small business owners have the habit of managing their business finances like they handle their personal finances – occasionally checking the balance in the account and paying off their bills when they have money available. What can be worse? Want to make sure that your business is not one of them? Keep Reading this blog.

Listed below are the 4 tasks that you ought to be performing on a weekly basis without fail:

1. Making Payments to Vendors – Your business needs a systematic plan for making payments to your vendors. This will help you keep a track of all your debts. Moreover, it will also help you maintain a good repute and credit rating of your business amongst the vendors.

The date of payment may vary from vendor to vendor; hence, you cannot get away simply by paying your bills all at one time in a month. Among the group of vendors, you have, some might accept or agree to get paid in a period of 30 days, whereas some vendors may request the payment as soon as the bill is submitted. Bookkeeping tasks are time consuming and there is no particular benefit of paying your bills on a daily basis.

Therefore, it is advisable to make the bill payments once a week and enjoy the increasing efficiency of your business. All your bills would be paid on time and your bookkeeper would not face a tough time having to deal with a lot of check runs.

2. Bank Account Reconciliation – Proper bank account reconciliation is extremely necessary for each and every business owner, because it helps them to understand the actual cash they have and then compare it with the cash they believed they had.

Most of the small businesses make a mistake of waiting for their bank statement to arrive and then reconcile it with their account, but the problem here is that bank statements are generated only once a month. This means that you have to wait approximately 31-31 days between the reconciliations and too much can take place in-between this time period. Therefore, it is recommended to all the small businesses to reconcile their bank account on a weekly basis, and if you have time, then doing it every day is also not a bad idea.

3. Record and Maintain Customer Receipts – For a small business owner, an unsatisfied or angry customer is the worst nightmare. Nobody expects to pay a bill and then get a ‘past due’ letter a week later. To avoid such awkward situations, make a habit of recording and maintaining the receipts from your customers in a timely manner. You should follow this routine every day, but if you are occupied with other tasks, once a week will do.

4. Extra Transactional Entries – Being a small business owner, you don’t only deal with your vendors and customers, you also make some financial transactions out of this as well. Financial transactions such as interest payment, a fee levied by bank and auto-debits are required to be recorded at the end of every week. Some bookkeepers opt for recording them prior to reconciling the account to make the procedure smooth and streamlined. However, as your business expands, you have to develop your personalized system to manage each and every aspect of the accounting process, giving the above-mentioned points a fair start.

Need a Helping Hand?

If you believe that all those points discussed above is hard to follow, then you need a helping hand in the form of Small Business Accountancy services from companies like Affinity Associates. The latter, with the help of experienced accountants, will keep you abreast of the complete financial situation of your business.

To discuss how Affinity Associates can create a customized package of small business accountancy for your small business in London, UK, call +44-20-8903-2077 or request a free initial consultation online at https://www.affinityassociates.com/contact-us.

4 Reasons to Consider Small Business Accountancy Services

4 Reasons to Consider Small Business Accountancy Services

Accountancy services are not just for medium or large sized businesses and organizations. Small and start-up businesses can also profit from utilizing such outsourced accountancy services. Truth be told, by connecting with an expert to record and monitor payroll, income, expenses, and taxes can enable any small business to achieve its potential. Here are top 4 reasons for any business owner to consider small business accountancy services.

Reason #1. Enhance Employees’ Efficiency

Most times, small-scale businesses might not have enough paperwork or accountancy relevant work to justify hiring a full-time bookkeeper in-house. In such a case, they may choose to have their non-accountant staff to split their work between keeping the accounts maintained and completing their regular work. This, however, in the long run proves to be inefficient for both the business and its employees. By hiring small business accountancy services to deal with the accounts will allow the businesses to free their employees from the activity they are not capable to do and enable them to focus on what they are hired for, eventually enhancing the general effectiveness.

Reason #2. Accuracy Ensured

Keeping all your business’s accounting records up-to-date such as tax, income, expenses, bookkeeping, payroll, etc. is a tough task. A professional small business accountancy firm that gives quality outsourced bookkeeping services has a team of professionals; skilled and experienced. By hiring small business accountancy services, you could be rest assured that your business’s financial books is accurately maintained. This helps demonstrate the genuine position of where a business is standing, and they likewise help deflect any prosecution.

Reason #3. Remain in Compliance

A business’s tax requirement and the taxation law surrounding it, may keep on changing often, which makes it difficult for the business owner to stay-up-to-date with it. Likewise, if the business is developing rapidly, it tends to be difficult to find out which laws will apply at various phases of the development. A small business accountancy firm, however, constantly keeps the track of the tax requirement changes and the laws surrounding it, and will ensure that your business always remains in compliance with the same.

Reason #4. Business Growth

A specialist small business accountancy firm will have the expertise in experience with the finances of the business from each angle. Their team of professional bookkeepers and accountants will provide you vital financial advice and tax advices that eventually helps your business to save more money. A good small business accountancy firm in the UK, similar to Affinity Associates, will even talk about all the execution improvement measures, which can enable a business to develop.

Regardless of the sort of your business, it is extremely useful to hire a small business accountancy firm in the UK, similar to Affinity Associates. With a pool of some of the best bookkeepers and accountants for small business in London, Affinity Associates gives premium-quality accountancy services to a wide range of businesses over the UK.

Get in touch with one of the professionals at Affinity Associates today, to discover how their small business accountancy services can help you. To contact us call on +44 208 903 2076 or write at info@affinityassociates.com. Alternatively, you can also fill a simple enquiry form at http://www.affinityassociates.com/contact-us/

Handling Accountancy In-House can be Costly! Consider Engaging Small Business Accountancy Services

Handling Accountancy In-House can be Costly! Consider Engaging Small Business Accountancy Services

If you are a small business owner and are handling the accountancy of your business by yourself, then you are probably incurring some costs to your business!

Many small business owners think they are saving money by carrying out accountancy in-house or on their own. The fact, however, is that the price they are really paying is quite higher than engaging small business accountancy services, like the ones offered by Affinity Associates. Continue reading to discover more.

Adequate Procedures & Professionalism

Accountancy is not just addition and subtraction! If it were, then anybody with a primary school education would be an accountant. Accountancy is also not about just recording and keeping track of various financial transactions. It is a smart discipline that ensures the financial records of a business are current, accurate, and complete.

It is not uncommon for many business owners who handle their own paperwork to keep fiddling with their previous financial records. For instance, finding an unaccounted receipt today or remembering recording a wrong figure, would urge a business owner to change the previous month’s records. While ensuring the accuracy of your books is essential, continually disrupting the records means the financial picture of your business is always changing. The reports of your business become less reliable, and no one will trust your records.

Even some bookkeepers tend to follow this practice because they are not trained in the accountancy discipline. This is one of the reasons to employ small business accountancy services from a professional and experienced firm rather than an in-house bookkeeper. Small business accountancy services will bring the discipline and streamline your financial/accountancy operations.

Accounting Analysis & Financial Advice

Skilled and certified accountants for small business can offer an unmatched level of analysis of the finances of a company that is well beyond what anyone else could. By looking at the books, experienced accountants for small business can identify and understand the patterns in revenues and expenditures, which you would not be able to do on your own. Understanding these patterns can help you create strategic plans to expand and improve your business further.

Professional accountants at a reputable small business accountancy firm in London, like Affinity Associates, can also offer sound financial advice to better your business. Learn how to cut expenses and increase revenue by engaging expert accountants. By engaging small business accountancy services, you may also be able to discover all the tax planning opportunities that help reduce your overall tax burden.

Tax Legislations & Tax Breaks

No one likes paying taxes, but things can become very serious if you do not pay at all or file them wrong. Only some business owners can comprehend various tax laws when they apply to their businesses. Value-added tax, payroll tax, capital gains tax, income tax, corporation tax, and more – all have to be paid to HMRC accurately and on time. However, the moment a business owner starts to understand, the tax legislation changes!

Business owners have other important things to do than understanding the various tax legislations and dealing with HMRC. A decent small business accountancy firm, like Affinity Associates, also has experienced small business tax accountants on its team who take the tax hassle out of your business.

These small business tax accountants are familiar with the latest tax legislations. They make sure that all your tax deadlines are met, and your financial reports are accurate so the proper amount can be paid.

Professional small business tax accountants often have in-depth insight into various tax breaks or tax benefits that business owners may not even know remotely. Engaging small business tax accountants can substantially minimise your overall tax burden.

Conclusion

Doing accountancy in-house may apparently seem economical, but it is not. Engaging professional small business accountancy services, on the other hand, will certainly prove cost-effective. There are numerous benefits of engaging professional services. They streamline your financial operations, ensure your books are accurate and up-to-date, analyse and provide essential data to help create strategic plans, offer practical financial advice, and help reduce the tax burden among other things.

If you are in need of quality small business accountancy services in London, UK, then just contact us at Affinity Associates. We are the leading small business accountancy firm in the UK, and we provide a range of high-quality accountancy and advisory services to all kinds of businesses. We have some of the best accountants and tax accountants for small business in London who can take care of your entire business accountancy.

Discover more about us and our small business accountancy services by getting in touch with us http://www.affinityassociates.com/contact-us/.

Top Benefits of Operating Business as a Limited Company

Top Benefits of Operating Business as a Limited Company

Are you operating your business as a sole proprietor? Have you ever heard or thought about incorporating your business? There are great benefits of running as a limited company!

Starting as a sole proprietor is indeed the simplest way to kick off a business in the UK. To run as a sole proprietor, all you need to do is register with HMRC and inform that you are operating as a self-employed, and report all your financial activities through the self-assessment tax process annually.

Establishing the business as an incorporated entity or a limited company, on the other hand, involves a complex company formation process. Further, the administrative and financial responsibilities of functioning as a limited company are also greater than those of a sole trader. Despite the complexity and burden, operating as a limited company can be very beneficial for you.

Here are some of the notable advantages of functioning as a limited company:

Separate Legal Entity

Unlike a sole proprietor business, a limited company has an entirely separate identity from its owners. Ranging from the bank accounts to the ownership of various assets, everything belongs to the company and separate from its shareholders’ interests. Even the debts and liabilities are in the name of the incorporated company, and the company itself is responsible for them. Hence, if the company becomes insolvent, owners or the shareholders are not responsible to for the bankruptcy.

In case of a sole proprietor business, the business and the owner are considered as a single entity; hence, the owner is responsible for everything.

Tax Benefit

By running your business as a limited company, you may perhaps have to pay less tax than as a sole proprietor.

A limited company needs to pay corporation tax on the income or profit it makes. Whereas, a sole proprietor needs to pay income tax on the income or profit his/her business makes. The current corporation tax rate is 19%. And, the current income tax rate is 20-45%! You can see yourself how much less tax you will need to pay by functioning as a limited company.

Further, from a limited company, you as a director or shareholder can draw a salary as well as substantial income in the form of dividends. Both dividends and salary are taxed separately, so you will receive the maximum income while paying less tax.

Limited Liability Protection

By operating your business as a limited company, you as the owner get a ‘limited liability’ protection. Limited liability protection simply means that if the company runs into any trouble, your personal assets will remain safe. You will not be responsible for any form of losses made by your company because your company is a separate entity, as mentioned above, which is liable for its own losses.

In case of a sole proprietor business, the owner does not get any such protection. Therefore, whenever any loss arises, the owner needs to bear it all by him/herself.

Funding

Acquiring new funding these days can be difficult for all kinds of businesses. Nevertheless, since a limited company is entirely a separate legal entity, it could be a little easier for it to acquire funds than it is for sole proprietors. Most financial institutions trust incorporated entities more than sole proprietors.

Further, if provisions allow, then a limited company can also raise capital via issuing of new shares.

Professional Outlook

In some sectors, being a limited company can portray that the company has credibility and is dedicated to effective and sound management.

A limited company gives both the suppliers and customers a sense of confidence and most companies, especially big enterprises, will never prefer to deal with sole proprietors. For that reason, incorporating your business can be beneficial to create a professional outlook, which helps bring in new prospects.

Incorporating your business is not too expensive and difficult! Just get in touch with the experienced accountants for small business in London at Affinity Associates, and seek their incorporation/company formation services.

The skilled accountants for small business in London at Affinity Associates will help you not only with the company formation process, but also with the accountancy for a limited company! Affinity Associates’ accountants for small business are vastly experienced and will take care of every accounting aspect of your incorporated or self-proprietary business. Discover what small business accountants in London at Affinity Associates can do for you by visiting the following link http://www.affinityassociates.com/our-services/.

Have any questions regarding incorporation or small business accountancy? Just get in touch with us http://www.affinityassociates.com/contact-us/.

Knowledge source: http://www.bytestart.co.uk/

Small Business Accountancy Firm in the UK – What it can do for you?

Small Business Accountancy Firm in the UK – What it can do for you?

With tough competition on the rise, it is essential for UK businesses to do something extraordinary that would give them an edge over their competitors. For instance, engaging a reputable small business accountancy firm in the UK, which can take care of every accounting and financial aspect of the business efficiently can definitely give a much-needed advantage.

Accounting is vital, but at the same time, a time-consuming activity for the business. Some aspects of accounting can be challenging too. In order to ensure that everything is in proper order, a business owner needs to employ an in-house team of full-time accountants. Not just any accountants, but a business owner needs to hire certified and skilled accountants, who can address every accounting aspect of the business. Finding such accountants can be time-consuming. Even if you can find such accountants, keeping them on your permanent payroll can prove to be expensive. And finally, such accountants will only handle your books, and may not come in handy when it comes to addressing the financial matters of your business.

Fortunately, engaging a small business accountancy firm can be the best resort for a business owner. Such a firm has certified and vastly experienced accountants to whom you can outsource various accounting activities of your business. Engaging a small business accountancy firm is substantially cost-effective compared to hiring a permanent staff of accountants. And, the best thing about collaborating with a top small business accountancy firm in the UK, like Affinity Associates, is the value-added services that you can avail along with the quality accountancy services.

Check out what you can avail by partnering with a leading small business accountancy firm in the UK, like Affinity Associates:

Click on each of the services to know more about it in detail.

Affinity Associates is the leading accountancy and consultancy firm in London, UK. With some of the best accountants and tax accountants for small business in the UK, Affinity Associates provides quality accounting, business advisory, and tax services. Being in the profession for over 30 years now, Affinity Associates can help you achieve an edge over your competitors.

To discover more about Affinity Associates, contact us http://www.affinityassociates.com/contact-us/.

Top Reasons to Consider Small Business Accountancy Services

Top Reasons to Consider Small Business Accountancy Services

Accountancy services are not only for large and medium-size companies. Start-ups and small businesses can benefit too from using such outsourced accountancy services. In fact, by engaging a professional to record and keep track of income, expenditure, and taxes can help any small business reach its potential. Here are top four reasons for any proprietor to consider small business accountancy services.

Reason #1. Improve Employees’ Efficiency

Often, small-scale businesses may not have enough paperwork to justify employing a full-time accountant. In such a case, they may decide to have their non-accountant employees split their time between keeping the books and carrying out their specific duties. This eventually results in inefficiency for both the business and its employees. By engaging small business accountancy services to take care of the paperwork, however, businesses will be able to free their employees from the job they are not suitable to do and allow them to focus on what they are hired for, ultimately improving the overall efficiency.

Reason #2. Ensure Accuracy

Keeping the accounts receivable, accounts payable, tax figures and other financial information accurate and up-to-date is a complicated task. A reputable small business accountancy firm that provides quality outsourced accounting services has certified professionals who are skilled and experienced. By engaging small business accountancy services, a business is helping to ensure the accuracy of its financial books. Accurate books help show the true position of where a business is standing, and they also help avert any litigation.

Reason #3. Stay in Compliance

Tax policy and financial legislation change frequently, and it can be difficult for a business to stay in compliance. In addition to this, if the business is growing quickly, it can be hard to ascertain which laws will apply at different stages of the growth. A small business accountancy firm, however, continuously follows the latest in the legislation and will ensure that your business always stays in compliance.

Reason #4. Business Growth

An expert small business accountancy firm will understand the finances of the business from every perspective. The experts working in such a firm will provide valuable tax and financial advice to help a business save more money. They can even advise whether or not to incorporate a business. A top small business accountancy firm in the UK, like Affinity Associates, will even discuss all the performance enhancement measures, which can help a business grow.

No matter the type of your business, it is very beneficial to collaborate with a small business accountancy firm in the UK, like Affinity Associates, and engage outsourced accountancy services. With some of the best bookkeepers and accountants for small business in London, Affinity Associates provides premium-quality accountancy services to all kinds of businesses across the UK.

Get in touch with one of the professionals at Affinity Associates today, to discover how their small business accountancy services can help you. To contact us call on +44 20 8903 2077 or write at info@affinityassociates.com. Alternatively, you can also fill a simple enquiry form at http://www.affinityassociates.com/contact-us/.