As a business owner, building a trust with your accountant is crucial for your business's success. Investing in the right accountant ensures your business thrives, grows, and remains compliant.
Here's 5 essential questions you need to ask your accountant:
Question 1 – Making Tax Digital (MTD): What Do I Need to Know?
Making Tax Digital is transforming the UK's tax system and it's crucial for businesses to stay ahead. VAT-registered businesses must now use MTD-compatible digital software for filing VAT returns. For Income Tax Self Assessment (ITSA), sole traders and property owners are next in line.
Top Tip: Stay proactive and embrace MTD early. Plan for digitised accounting records (if you haven't already) and quarterly updates to HMRC to ensure compliance well before the deadlines.
Purple Accounts can do all this for you - so you don't have to worry.
Question 2 – Basis Period Reform: What's Essential?
HM Revenue and Customs are altering how unincorporated businesses assign trading income to tax years, specifically impacting those with non-March year-ends. Limited companies remain unaffected. Discuss your options with Purple Accounts if your business year end differs from March or April 5th. Prepare for potential changes in tax liabilities brought forward by HMRC's reform.
Top Tip: Engage in a proactive conversation with your accountant around the basis period reform, potentially aligning your accounting year end with March or April 5th.
Question 3 – Going Paperless: Is It Possible?
Modern accountancy embraces the digital age, offering tools and cloud-based software for a paperless experience. Purple Accounts is a Xero Gold Champion, so you benefit from better efficiency and preparing for Making Tax Digital obligations. You'll get the benefit of Receipt Bank that links beautifully with Xero.
Top Tip: Embrace online software for streamlined processes. Purple Accounts recommends all businesses to go paperless to enhance efficiency and meet digital obligations seamlessly. We can do this all for you and help you to get set up with going paperless.
Question 4 – Improving Cash Flow: How Can I Manage It?
Efficiently managing cash flow is vital for business sustainability. Purple Accounts recommends leveraging online software to track money movements, send payment reminders and create cash flow forecasts. Engage your accountant in developing an organised cash flow model to address potential issues before they arise.
Top Tip: Regularly update cash flow forecasts and collaborate with your accountant to analyse financial reports, enabling better spending scrutiny and maintaining control over your business finances. Purple Accounts also offers a costs reduction service, which is invaluable for small businesses.
Question 5 – Maximising Claims: Am I Getting Everything I Can?
From premises and office costs to travel and advertising expenses, accurate recording ensures your business runs effectively and reports correct information to HMRC. Purple Accounts emphasises the importance of claiming all allowable expenses.
Top Tip: This is not something to do yourself. Rely on Purple Accounts to stay updated on available tax reliefs. We identify and maximise claims to enhance your tax position.
Get in touch with Purple Accounts Warrington today for a chat about how we can help you and your business.