It is all about the process of recording your information and making it work for you, your business, and your obligations.
If you fail to plan, you plan to fail!– Benjamin Franklin
Does It Affect You?
This is the process of recording your income and expenditure accurately, through the use of accounting software. Bookkeeping services can include bolt-on services like Payroll, Auto Enrolment, CIS and VAT. Bookkeeping is a core service and accurately recorded data is vital for providing valuable reports on performance and for compiling Annual Accounts.
This is the process of accurately recording and reporting Value Added Tax (VAT), a tax levied by the government on the sales of goods and services. Unless exempt, all businesses with an annual turnover over £82,000 must register for VAT and complete a quarterly VAT returns.
Once VAT registered, you must: charge VAT on the goods or services you sell, you must pay VAT on the goods and services you buy, and you must file a VAT return every quarter to HM Revenue and Customs (HMRC).
This is the process of paying your employees in accordance with HMRC, also known as ‘Pay As You Earn,’ or PAYE. The processes of payroll can be complex and there is now a requirement on the employer to report payments to their employees in real-time ‘RTI’, on or before the actual date of payment and to comply with Auto-Enrolment duties.
This is the process of enrolling qualifying staff into a Workplace Pension Scheme. This is a legal requirement for employers. Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme, and contribute towards it – this is called ‘Automatic Enrolment’.
This is the process of managing tax deductions by a contractor from a subcontractor’s payments, under The Construction Industry Scheme (CIS), and paying it to HM Revenue & Customs (HMRC). These deductions count as advance payments towards a subcontractor’s tax and National Insurance.
There are ongoing obligations on the contractor to ensure that a subcontractor would not be seen as an employee. Contractors must also enter into a formal agreement with their subcontractors, expect to receive invoices from them, and verify their status with HMRC to establish their rate of deduction. They are also expected to report payments and deductions monthly to HMRC and issue a statement of payments and deductions to the subcontractor.
This is the process of reporting the financial activities and position of a business, person, or other entity. Annual Accounts take the form of a financial statement or report and are a formal record of relevant financial information presented in a structured manner that is easy to understand.
Typically, basic financial statements are a balance sheet (financial position) and an income statement (profit and loss report) from the stated period.
Confirmation Statements (Annual Return)
This is the process of providing a snapshot of company data at a specific date for inclusion on the public register. From 30 June 2016, the Annual Return (AR) is replaced by the Confirmation Statement (CS).
Although the CS is intended to serve the same purpose as the AR, there is now a requirement to ‘check and confirm’ that the information held is accurate. In addition, there is the inclusion of a ‘people with significant control (PSC) register’, which will contain information on PSCs who are not necessarily the directors or shareholders of the company, and who would not previously have been caught by this legislation.
This is the process of legally incorporating a business in the UK and is sometimes referred to as company registration. In order to legally form a company certain procedures need to be followed, and once registered you will receive a ‘Certificate of Incorporation.’ This will confirm the company legally exists which shows the company number and date of formation.
Bookkeeping System Software
This is the process of setting up a good bookkeeping system, which is time consuming and needs to be done properly to ensure that data is recorded in a useful and compliant way.
We offer cloud solution software where we can collaborate with you online in real-time, or we have the option to process your data remotely and provide you with reports. With HMRC’s move into Making Tax Digital and quarterly reporting, the decision on suitable accounting software has become crucial.
Thank you for taking the time with us today to review our accounts.
We were delighted by the progress you and your team have made in restructuring our accounts and reconciling the figures to ensure we are utilising more of the features of Quickbooks.
Given the growing nature of the business and the introduction of “making tax digital” the move to you and your team with quickbooks experience and collaborative approach could not have come at a better time. I guess we could have done it earlier! Certainly we would having been struggling had we not made the move this year.