Frequently Asked Questions
I’ve just had my accounts done, should I wait until next year end to change?
We would say the earlier the better because this is where we add value. We work with you during the year we don’t just report on the past. If you just want someone to report on the past and get no help on improving your business or tax efficiency then we might not be the right accountant for you.
Is it difficult to change accountant?
Not at all. We make the process as painless and quick as possible through our Easy Switch Service.
I’m not sure what accountancy support I need?
Don’t worry, often when we buy something we know what we’re struggling with or what outcome we want but we’re not sure what we actually need to buy. That’s why we always start by finding out about you and your business. We’ll talk about what you’ve already tried, what worked and what didn’t. We’ll explain what we think would help, how and why, even if that means sending you to someone else who would be better placed to meet your needs. After all if we try to deliver a service that we’re not best placed to deliver or try to sell you something you don’t need you’re not going to get any value from us, and consequently you wouldn’t be a happy customer.
What is cloud bookkeeping?
Cloud accounting software is similar to traditional, on-premises, or self-install accounting software, only the accounting software is hosted on remote servers. There us no need to install software on your laptop. Online accounting means as a small business owner you can access your financial data anywhere you have an internet connection, on your laptop, mobile phone or tablet. Your accountant can also access the same data, meaning we can give you real time support with your business. Check out some of our favourite cloud tools here
What is Making Tax Digital?
Making Tax Digital or MTD for short, is a government initiative to create s digital tax system. The idea being it will be easier for individuals and businesses to get tax right and keep up to date with their affairs. Individuals and businesses already gave access to a digital tax account. This government project is continually developing, but April 2019 is the currently the key date for VAT registered businesses.
What’s the difference between a sole trader and a limited company?
The quickest way to get started in business is as a sole trader. You just need to register for self assessment with HMRC and complete an annual self assessment tax return. Operating as a limited company or Ltd for short, requires you to register the company name with Companies House and register with HMRC for corporation tax. A limited company is a separate entity to you as a person, so all the cash, assets and liabilities belong to the company. Check out our blog for greater detail.
Why doesn’t my profit equal my bank balance?
This is one of the most common questions we get asked. Income – Expenses = Profit BUT if a customer hasn’t paid you yet that cash isn’t in your bank, it’s classed as a debtor. Likewise if you have credit terms with a supplier, the expense will be included against your profit but you won’t of physically paid the money out of your bank account. As the saying goes “Cash is king”, don’t be fooled into thinking that just because you’re making a profit you’ve got cash. Because if your customers don’t pay or are very slow paying your business could be in trouble.