Accounting For Your Business: Let’s Get The Basics Right First

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Accounting can seem overwhelming, but you can make it easy. Here is a good starting point:

Know your VAT

This is one area where a lot of small business owners are missing out. There are a number of different VAT schemes, and you need to choose the right one for you. One option that should be carefully considered is the Flat Rate Scheme. It is not right for all businesses, but it may be beneficial to you. With this type of scheme, on your turnover, you are going to pay a fixed rate of VAT. The flat rate depends on the industries you are in. 

For example, for IT consultants and computer consultants, the rate is 14.5 per cent, however, for property managers and estate agents, the rate is 12 per cent. So, do make sure you know the rate for your industry before you attempt to determine whether this is going to be the most cost-effective solution for you. This is something an accountant will be able to assist with.

Hire an accountant 

You can save yourself a lot of trouble and a lot of headaches by hiring an accountant to take care of your taxes for you. Not only will this free up time so you can focus on more profitable areas of your business, but your accountant will ensure you are alerted to any tax breaks so that you are paying the minimum tax that is legally required. They will also give you the peace of mind that everything is being handled above board so you don’t need to worry about any fines. Of course, it is not a case of any old accountant will do; you do need to choose with care. Here are some of the things you should consider:

• Experience – Don’t only look at the number of years they have been in business, make sure they have provided their services for many small companies during their years in operation.
• Registration – It is imperative to choose an accountant that is US-based and US-registered. 
• Qualifications – Make sure they have all of the necessary training and qualifications. OnPay Solutions is a great example.
• Feedback – Read reviews that have been left by previous clients of the accountant. Have they been happy with the service they were provided with? How did they find working with the accountant in question?
• Communication – It is pivotal to make sure that the accountant you choose is easy to get in touch with.
• Fees – How will the accountant charge for their services? It is advisable to look for a fixed-fee accountant. You will know exactly what you are paying, and this will make the monetary side of things a lot more manageable. Nevertheless, do find out what is included in this fee, as you do not want to get stung by any hidden expenses.

Accounting bodies – It is good to find an accountant that is a member of a regulatory body or organization. Typically, to be a member of such bodies, you need to display a certain level of quality and ethical working practices.