Running a small business is in many ways less complex than some of the larger businesses. You likely do less business and have fewer employees than larger businesses. In these ways, it is simpler. However, it is often the case that your small business is more intrinsically tied to your personal finances. This means that mistakes with your tax filings on your small business account can actually translate into problems in your personal life. Also, the filings are often more confused because small businesses tend to have smaller contracts that are much more difficult to nail down.
For example, your accounts receivable file may be actually larger than that of a large business if you are doing a lot of contracted work.
If you want to make sure that you are getting your accounts cleared and paid on time, you need the best chartered accountants in Purley. Chartered accountants will look over your books to make sure that everything is as it should be. Accountants will make sure that you are keeping track of your accounts payable as well as your accounts receivable.
- Accounts payable is the group of files that you need to pay out of your business coffers. Receivables are the payments that you are owed from others. You need to make sure that you keep these orderly for your tax filings each year.
- Accounts receivable are accounts of money that you are owed; you need to make sure that you keep track of these as well.
Taxes can become confusing if you work out of your home as well. If you work out of your home, you’ll likely be paying domestic taxes but there are some specific tax breaks for home offices. You need to have good books to take advantage of those.