An unbelievable amount of money is thrown away every year by small businesses, simply because they are not running their finances efficiently.
Below, Simon Dolan has outlined the top six most useful tips that if not applied, at best cost you and your business money, and at worst can cause your company to crash and burn.
Know what you can and cannot claim
HM Revenue and Customs ‘Expenses’ (480) booklet is 100 pages long so it’s no wonder that your head maybe left spinning after reading it. Do your research or speak to an accountant.
Get things in on time to avoid all the nasty penalties
This is one of the most common mistakes. Tax saving advice can soon be eroded by penalties and interest on the tax you owe. A £300 fine for a £10m company isn’t really much, but for a startup company or smaller business, it’s quite a chunk.
Do NOT give credit terms
Ensure the client knows that payment is required on completion, even better get part or full payment up front. This is becoming more and more commonplace now.
Know your targets
If you need to advertise due to not having a shop front, consider very carefully where you advertise and how much money it costs to reach each one of your prospects.
Do you have tax planning in place?
Would it be better to leave money in your company this year and take a lower salary? Managing your own accounts may save a little but you may also miss valuable tax saving ideas.
Separate bank accounts
Don’t leave your current business bank account with a huge balance. Instead move it over to a high interest savings account. There are still a few banks who are interested in providing savers with good rates of return, albeit lower than the good old days, but every little helps. Also, using a bank that doesn’t charge for business banking will help you.
More Information
Entrepreneur Simon Dolan is the voice of the single person company; having started SJD Accountancy aged 23, from his bedroom. SJD is now the UK’s fastest growing and largest accountancy firm for the self employed market, providing accountancy services to over 10,000 clients.
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