Name: Swindells Chartered Accountants
Address: Wilson House, 48 Brooklyn Road, Seaford, East Sussex, BN25 2DX
Price range: ££

5 Accounting mistakes small business owners often make in their first year

Melanie Richardson

20/03/2018

If you have recently started your first business, there can be a lot to take into account. However, one element of your company you need to get right is your finances. Read on to discover some of the most common accounting errors that small business owners make in their first year so that you can avoid them.

Mixing personal and business expenditure

Operating via the one bank account may seem easier, but it is only going to cause you a lot of trouble in the long run. It makes it incredibly difficult to track your expenses. Plus, you could find yourself in trouble with HMRC if they decide to do a tax audit.

Trying to do everything themselves

Trying to keep everything in-house is admirable, but it can often be a big mistake. You will find that there are simply not enough hours in the day, and bookkeeping ends up being incomplete. Not only can accountants assist with this, but they can also provide financial advice that helps your business to make the most of any opportunities and grow at a quicker pace.

Forgetting to record small transactions

It does not matter how insignificant an expense seems, they all add up in the end. It is essential that your business has a record of all of its spending, no matter how big or small.

Not reconciling their books

This leads on from the earlier point regarding trying to do everything in-house. If you do not have time to reconcile your books, common accounting mistakes could go unnoticed for a very long time. This could mean that your business is in a completely different financial position than you expected.

Missing out on expenses

A lot of small business owners are paying more tax than necessary because they have not claimed for all of the expenses they are entitled to. This is where a qualified and experienced accountant really shows their worth.

If any of the mistakes that have been mentioned above sound familiar, it is important to put the steps in place to rectify them. Follow the advice that has been provided above to make sure that you get your finances back on track.

To discuss your small business needs get in touch with our Business Services Partner Robert:

Email: robertw@swindellsaccounting.co.uk

Tel: 01825 763366

Robert east sussex accountants

Key questions when it comes to inheritance tax

Inheritance tax (IHT) is a complex and often misunderstood aspect of tax law that can have significant implications for your estate. The new Labour government is likely to have plans to change the rules around inheritance tax and so we in this article, we look at the current rules.

Labour’s plans to impose VAT on independent schools

As a Labour government takes office, we look at Labour’s stated intention to apply VAT to independent school fees. This initiative is part of their pledge to “recruit 6,500 new teachers in key subjects to prepare children for life, work and the future, paid for by ending tax breaks for independent schools.” They estimate the policy will raise around £1.6 billion, which is “urgently needed to improve the state school system” used by about 93% of students in the country.

Cash flow management: strategies to keep your business healthy all year round

Managing cash flow is crucial for the success and sustainability of any business, whether you’re a small start up or an established company. Proper cash flow management ensures that your business can cover its expenses, invest in growth opportunities and weather financial uncertainties. Here are some strategies to keep your business’ cash flow healthy all […]