Frequently Asked Questions
Bookkeeping helps your small business run smoothly. This is true whether you do the work yourself or hire a professional accountant to do it for you. Without proper bookkeeping by a professional, your accounts will not be accurate and may have errors. That means your accountant will not get a clear picture of your company’s finances, and you cannot make strategic and reliable business decisions.
Bookkeeping is beneficial for a business as it frees up a lot of time that can be used to grow the business. It takes up a lot of time, patience and effort, which can instead be used on another aspect of the business. Having your financial transactions laid out in front of you in a clear and easy-to-understand format can show you how well the business is doing and can warn you in advance if things aren’t going well.
An accountant can bring many real benefits, such as planning, forecasting, and analysing, by preparing income statements and balance sheets and then filing tax returns. The bookkeeper can keep track of the business on a smaller scale with a clear view of where the business should be heading. This is what makes ROSS MCKINLEY ACCOUNTANTS LTD stand out from the rest of the industry, as we provide all these services professionally under one window of operation.
Management accounts are a type of financial report that provides insight into your business’s financial performance, which can be used for day-to-day and strategic decision-making. They are usually produced monthly or quarterly by tracking various key performance indicators.
The main focus of management accounts is to analyse information, identify problematic areas and develop ways to resolve them. This allows your business to reach its full potential and highlights where you may need to make improvements or make new financial decisions.
The preparation of your Management Accounts typically includes a profit and loss account, balance sheet, cash flow statement and a short report. You can put the accounts together yourself, or more realistically, an accountant can do it for you.
PAYE is HM Revenue and Customs (HMRC) system to collect Income tax and National Insurance from employment. You do not need to register for PAYE if none of your employees is paid over £123 a week, gets expenses or benefits, has another job or receives a pension. However, you must keep a sufficient amount of payroll records.
You will be required to keep your payroll records for three years. This is to make sure your employees’ rights are safe and protected, allowing HMRC to investigate your payroll records at any time. You may be vulnerable to penalties if there are any problems with your current or previous employees regarding their details and pay.
If you are willing to put the effort into learning payroll and being aware of UK tax laws, you can manually do your payroll for your small business. Doing your payroll by hand reduces the costs of getting an accountant to do it for you and allows you to have full control. However, this may take longer and be very time-consuming. You can fully outsource your payroll to us, and we can provide a special package specific to your wants and needs. This will save you time and money!
You submit a VAT Return to HM Revenue and Customs (HMRC) every three months, which is also known as the accounting period. The VAT Return records items for the accounting period, such as your total sales and purchases.
You need a VAT number and an online VAT account to submit a VAT return. Then, you can submit your VAT Return using HMRC’s free online service or commercial accounting software. You cannot use your online account to send your VAT return if you have signed up for “Making Tax Digital for VAT.”
If you are late making a payment to HMRC, you will likely enter into a 12-month probation period known as a “surcharge period.” If you file any further late returns or make any more late payments during this period, you will incur a penalty, and the surcharge period will be reset for a further 12 months.
Probate is the legal process of confirming a will and managing the deceased’s estate. It ensures the will is valid and that assets are distributed as intended, preventing disputes among heirs.
A will is simpler and cheaper, ensuring assets are distributed after death. A trust offers more control, potential tax benefits, and avoids probate. The best choice depends on your needs; consulting a legal expert is advised.
If a trust beneficiary dies, the trust terms decide what happens next. The trust may name other beneficiaries or the share might go to the remaining beneficiaries. If unclear, it follows the deceased beneficiary’s will or intestacy laws.
Ross Mckinley Chartered Certified Accountants
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