![]() ![]() Your business will have various running costs and some of these can be deducted from your taxable profit as long as they are allowable expenses. You will be responsible for charging the right amount of VAT, paying VAT due to HMRC, submitting returns and keeping VAT records and a VAT account. You’ll also need to register your business with HMRC is your VAT taxable turnover is more than £85,000. Legal compliance is key so that your business stays compliant with relevant financial laws. Evasion of tax is illegal and there are tough penalties so you will need your tax department to make sure laws are complied with. Funds need to be available to pay HMRC at the right time. All decisions made by your business will have tax implications which will need to be identified and incorporated into financial planning and decision-making processes. ![]() If you have a large company, you will need a taxation department. Your accounts department will prepare end of year financial statements and reports to include balance sheet, income statement and cash flow. This allows companies to make more informed business decisions, forecasts and prepare budgets. Systematic records must be kept of your company’s financial transactions and here accounting software is used which could include QuickBooks, Xero, Sage or other customised systems.įinancial information is collected in order to prepare accurate financial statements and reports. This means that someone else will be chasing those outstanding invoices. Nobody really likes asking for money so you need an accounts department that will set up a smooth credit control process. Monies coming in are essential for a healthy cash flow, but getting your customers and clients to pay on time is a challenge. Our recent article about using a payroll specialist will give a lot more information on this topic. Another key function is recording employees’ time off from work, holidays and sick pay. It will include commissions, bonuses and benefits that are due to them. This will ensure your employees are paid accurately and on time. It is often referred to as ‘balancing the books’. This is key to calculate the profit or loss your company is making and should trigger opportunities to improve on the situation.
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