The process of keeping a business’s financial accounts in order, accounting involves interpreting and presenting financial data. This can be used to make business decisions.
The first part of the accounting process, bookkeeping involves recording and organising a business’s financial data. This work often overlaps with accounting.
Payroll is essential for businesses that employ people to work. It’s the process of recording employee wages and the amount of money an employee has made over time. This work includes sending timely payslips which records the total earnings and salary deductions, such as tax or pension contributions. This can be done weekly, fortnightly or monthly.
Being tax compliant involves following the national and international requirements set forth by government and taxing authorities. Tax compliance is all about keeping your business tax records up to date and filing reports to the HMRC on time. An accountant can help with this. In the UK, businesses that don’t complete their tax return filing by the deadline are considered noncompliant, and risk facing financial penalties. Tax returns must also be accurate and filed in the correct format.
Tax planning is the analysis and review of a financial situation that can help your business pay the lowest amount of tax possible, while remaining 100% compliant and on the right side of tax-law.
Short for HM Revenue and Customs, this is the government department that deals with all things tax.
Making Tax Digital
Making Tax Digital is a government-backed plan that aims to make tax reports 100% digital. With a view to make it easier for businesses and individuals to stay on top of their taxes and file their tax returns, these changes are set to become compulsory by April 2022. You should look out for Making Tax Digital accountants to ensure that your business will be compliant when the changes take place.
Businesses must fill out an annual company tax return form. This will declare the amount of corporation tax you owe. This details spending, profits and corporation tax figures. If you’re a sole-trader, freelancer, or in a partnership, then you should fill out a self-assessment tax return instead.
A Tax Enquiry can be made by the HMRC to check that the information you presented on your tax return (see above) is accurate.
A VAT Return is a form that calculates the amount of VAT you owe HMRC for sales, as well as the amount of VAT you can reclaim on business expenses. The VAT Return looks at your total sales and purchases across a three-month accounting period. If your business is registered for VAT, you must complete a VAT Return form.
Intrastat is the name given to the system for collecting financial data on goods that have been traded between the UK and EU member states. This is for tax calculation purposes under the VAT Returns process.
A dividend is a payment in cash or stock that public companies distribute to their shareholders. It’s essentially how companies distribute their earnings to shareholders.
If your small business is searching for an experienced accountant, look no further than McIntyre Stuart. We take the time to know your business and will offer accounting services that work around your requirements. Get a free quote today.