Accountants are famous for being boring. I hope my writings (hopefully, on a regular basis) will bring light to our interesting side.
I’m going to start with, well, without being patronizing, something easy (to warm me up on the keyboard if anything else!)
What I have noticed is far too many exciting business people will know the product(s) they are selling inside-out but when it comes to the accounts, eye brows are raised and frown lines appear.
I hope my first blog post will help to clear any cobwebs on jargon that you may hear your accountant spit out every now and again. You should feel comfortable to speak to your accountant, and genuinely, please feel free to ask us questions, we won’t bite.
Bookkeeping – is the recording of the financial transactions of the business, a bookkeeper using bank statements, bills and invoices will build and create a systematic and financial record of your transactions.
VAT Returns – VAT is a tax normally charged on goods and services provided by the VAT registered businesses.There are three rates of VAT, Standard at 20%, 5%, and zero rated at 0%.VAT registered businesses can normally claim back the VAT they have paid on their purchases.
Businesses which are VAT registered keeps a record of vat paid on their purchases and charged on their sales. VAT subtracted from this record gives you the amount you pay to HMRC or claim.
Each quarter VAT return is submitted to HMRC.
Monthly Management Accounts – This is made up of a profit & loss accounts and balance sheet. This report tells you how your business is doing. Bookkeepers or accountants prepare this report either on a monthly or on a quarterly basis. It helps to make important decisions on expenditure.
Preparation of Annual Accounts – Financial position of the Company is disclosed each year. This will include the profit & loss account and the balance sheet
SA 100 – is a self assessment form which is completed once a year by a business. This will shows your income and capital gains and claim of any tax allowances and reliefs. Once tax returns are sent a self assessment statement is received advising you when to pay your tax due.