A Small Business
...Can Be An Awfully Big Adventure
Small Business Support
We're Here To Protect You And Help You Grow
Setting up your small business was just the start. You've signed away the family cow, sown your magic beans and now you're doing all you can to make your enterprise grow. You may already be seeing the first green shoots of progress break the surface, but it'll take good business habits and tight credit control to make sure you're nurturing a beanstalk and not a triffid. RIFT Accounting will help keep you out of the fertiliser, but we need good and frequent information from you to work with.
Call us on 01233 653006 today.
Statistically, the longer you're in business, the higher your chances of a dreaded VAT or tax investigation. This is purely routine and they’re normally nothing to worry about, as long as you have professionals on your side and all your paperwork to hand. Of course, if you're using Clear Books with RIFT Accounting you'll be uploading everything to the cloud, so you’ll have no worries about missing files at the moment you need them most.
What Do I Have To Do To Set Up A Ltd Company?
Registering and running a Limited Company requires more legal administration than a Sole Trader business or Partnership. While the Sole Trader is personally responsible for any debts incurred by the business, a Limited Company is a separate legal entity from the company Directors. It can own property, incur debts, sue and be sued. Any business dealings are made on behalf of the company, rather than you, and its owners are liable only for the amount they invested.
Naturally, this also means that profits and losses belong to the company, and the business can continue regardless of the death, resignation or bankruptcy of the Shareholders or people who run it. You've planted a sapling. Maybe you'll sell it, or maybe your descendents will be eating its fruit for generations to come.
How Often Should I Talk To My Accountant?
We'd say as often as possible. A great accountant should be helping you to use your results to improve your business every day - not just doing your figures at the end of the year.
In the beginning you may want to talk regularly as everything will be quite new to you and you may need to double check things. As you become more experienced, you'll probably have even more you want to talk about as your strategy becomes more complex and you have more decisions to make.
It’s always tempting to put off your bookkeeping until later if it’s stressful or boring, and simple tasks always take longer when you're tired and making mistakes. Of course, if you take time out of working hours to do your accounts when you aren’t tired, every hour you spend doing it is an hour when you could be earning money. It's a tough call. Will you end up stuck with worthless beans, or caught by the giant at the top of that beanstalk?
For less than the cost of the cup of coffee it'd take to keep you sweating caffeine over your accounts each night, you could be gathering golden eggs all day while we handle the paperwork.
RIFT Accounting will advise about what your business specifically needs to keep track of, but in general you're going to want three sets of records. These are:
- The payments into and out of your bank account. Good data here is a powerful forecasting tool, rather than just a bookkeeping chore that you'll never refer to again.
- Sales invoices. Store invoices in chronological order to keep things easy to find. Keep the unpaid ones separate to help manage your credit control and decide who to do business with in the future.
- Purchase invoices. Get used to making notes on expenses about when you paid them and how (BACS, cheque, cash, etc.). File them chronologically to make life easier later. Keep notes on the services you've received and learn from them for future buying decisions.
You should also get used to:
- Getting invoices or receipts for everything you buy. If you buy something online, print off the invoice - you can even scan them into Clear Books. It’s easier to collect paper as you go along, rather than try to find it years later.
- Keeping your accounts clean. Separate your business and personal expenses. If you run a Limited Company, the business’ money is not your own. As a Director, you can’t spend the company’s money on your own purchases, other than legitimate business expenses. As a self-employed person, you take cash from your business, but we would recommend you should still maintain a separate bank account.
- Checking your bank statements at least every month. You'll combat the risk of fraud or bank error, and you'll better understand where your money's going.
RIFT Accounting to the rescue! Using Clear Books' cloud software, our managed accountancy service saves you more than just money.
Choosing Between Sole Trader Or Limited Company
The choice between Sole Trader and Limited Company status is one of the most fundamental decisions for your fledgling business.
It will shape every move you make for years to come.
Make sure you set out on the right foot by reading our easy guide to the benefits, opportunities and drawbacks of both options.
Responsibilities Of A Limited Company
You're your own boss and wouldn't want it any other way - but you've still got taxes to pay and expenses to budget for.
In fact, in some ways you've got even more responsibilities than if you were running a whole company.
From weighing up your personal liabilities to keeping the taxman happy, read our guide to your responsibilities as a Limited Company.
Starting Up A Limited Company
If you've decided to take the leap and form a Limited Company, this step-by-step guide is for you.
A lot depends on you getting your company established and registered correctly.
Having a clear view of the way forward makes all the difference, we'll show you how to get things rolling.
Starting Up As A Sole Trader
If you want to grow, you need to make sure you've taken all the necessary steps to give your business a firm foundation to build from.
Give yourself the best possible start by reading our guide to starting up as a Sole Trader.
Setting Up Partnerships
If you’ve got two or more self-employed people working together in a simple business structure, then you’ve got a Partnership.
In a Partnership, everyone involved needs to have a clearly understood stake in the business and its assets.
This guide will give you some pointers on what to consider.
