A Small Business
...Can Be An Awfully Big Adventure
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.
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.
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.
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:
You should also get used to:
RIFT Accounting to the rescue! Using Clear Books' cloud software, our managed accountancy service saves you more than just money.