The kids are back to school, and they’re not the only ones needing to knuckle down and open their textbooks. While you might fight shy of giving up the last light evenings to financial admin, early autumn is a great time for business housekeeping. A few hours’ tidying up your invoices, receipts, accounts and tax can pay dividends in avoiding last-minute panics, nasty surprises or even punitive HMRC action.
December 31st, January 31st, March 31st, April 5th: if you’re self-employed, a contractor, or run your own business, there can be a dizzying wealth of dates to get registrations, forms, claims or payments in. If you submit self-assessment paper tax returns, 31st October should be a red letter day on the calendar. Here’s some more financial housekeeping tips complied by ICS Accounting’s experts from years of helping sole traders and the self-employed stay ahead of the game.
Would your financial records get an A*?
Sounds basic, but the day-to-day realities of running and growing your business, moving between projects or bidding for contracts, can make it easy to fall behind. Organised and detailed financial records are essential for tracking performance, managing cash flow, and complying with tax regulations, as well as making accurate expense claims and deductions when completing your returns.
Keeping track of receipts and invoices?
Physical records can be invaluable for proof of expenses and payments, but it’s easy to get snowed under- we welcome plenty of people who’ve got behind (and their bulging carrier bags!). Digital tools can be a great investment for little outlay, as can professional accountancy services, so make this the autumn you ditch the shoebox for good!
Making it (too) personal?
With business bank accounts and credit cards, it’s much easier (and vital) these days to separate personal and business finances. However, it can sometimes be easy to blur the lines, especially when starting out or taking the step from craft trader to small business. From small purchases to incoming payments, make sure the dividing lines are unambiguous, for a much easier forward path.
Using business expenses to your advantage?
No, we don’t mean dubious claims! Keeping clear records of your expenses- from receipts to rent- allows you not only to stay on top, but use for future strategic and business planning. Time and clarity achieved can enable you to allocate resources, set financial goals, and control overspending- for example, by avoiding seasonal cashflow issues and high-cost borrowing.
Are you on top of tax deadlines?
As we said, October 31st is red-letter deadline day if you submit paper tax returns. This early deadline, 3 months before 31st January’s deadline for the online equivalent, is due to the extra time it takes HMRC to process paper returns. They can also be more cumbersome for you, as well, so once you’re caught up and on track for the current cycle, it’s definitely worth considering moving to online submission, or taking the weight off by taking advantage of an accounting package. Late submissions attract an immediate £100 penalty, with more for continuing delays; hard-earned cash that’s far better off in your accounts.
With years of experience supporting growing numbers of freelancers, self-employed and contractors, at ICS Accounting we’ve even developed packages for specific professional sectors. Just like our standard packages, they give peace of mind that all your accounting needs are taken care of in the most accurate, timely and efficient manner, giving you 24/7 online access, friendly personal phone support, the ability to add on bespoke requirements, and, most importantly, the freedom to get on with what’s most important: your core business, your life, and those precious evenings.
So a little housekeeping homework now will ensure you stay out of detention and top of the class! For peace of mind and no-obligation advice for your individual requirements, don’t hesitate to call one of our friendly team on 0800 195 3750, or email info@icsuk.com.
