Bookkeeping is a process of recording, storing and retrieving financial transaction for a Company, Non-Profit Organisation or an Individual.
Maintaining your books alongside running a business can sometimes be a very time-consuming task and can also lead to minor errors. A qualified bookkeeper can keep record of all your income and expenditures, that will not only be useful for submitting Annual Returns to HMRC but will also help in taking any investment decisions.
Bookkeeping can also be done by the owners of the organisation but in-order to adhere with HMRC rules and regulations training is required.
Hiring a bookkeeper for a small organisation adds responsibility on the director. The company needs to produce their payslip weekly or monthly and need to find a temporary staff if an employee goes on holidays or call in sick. By outsourcing the accounts, the company relay on the expertise of the firm and reduce the chances of errors.
Investing in the Accounting Software such as IRIS, Sage, QuickBooks or Zero can only be useful if a person has specific expertise and a right training has given. However, investing in a software can be costly for small organisations and will add more burden to their shoulders. Therefore, it’s always better to Hire a Bookkeeper rather than investing in an Accounting Software.
Limited Company is the type of business structure that has its own legal identity, separate from its owners (shareholders) or directors. This remains the case even if its run by just one person, acting as a shareholder.
Self-Employment means working for yourself. You invoice your clients and they pay you directly. You are personally responsible for your own NI and submission of Tax Returns.
To submit the returns online, the deadline is the 31st October. Whereas for paper submission, the deadline is the 31st January.
Corporation Tax is the liability which is payable on their profits by Limited Companies. For businesses making a profit of £300,000 or less, the current tax rate is 20%.
Companies generally pay Corporation Tax after the nine months of their company’s year ends.
You need to register as an employer as soon as an employee starts working for you.