Start of a new Tax Year
We’re now into the 2015/16 tax year and everyone is hoping that this will be a profitable twelve months for business. With inflation and low oil prices remaining low for a lengthy period, there have been some tangible signs that business confidence is growing, along with employment, investments and new opportunities. This time of year is ideal for business planning; ditching the things that haven’t been working well for some time and directing efforts in areas where there is potential for growth.
However, before we focus all of our attention on our visions for the future, it is important that we feel confident that everything from the 2014/15 tax year has been completed. Most crucially, we need to ensure that all the financial paperwork is in order, so that we can complete our tax returns.
When you are in the midst of exciting new plans, financial paperwork can be the last thing on your mind, however getting your finances in order can support, rather than hinder your plans. You may not need to complete your tax return until the end of January 2016, but getting things in order now gives you a clear foundation from which you can make realistic plans for the future.
Sorting out your finances in preparation to complete your tax return gives you a true picture of your income and expenditure. It can highlight patterns in your annual figures, areas of weakness and strength and cash flow forecasting, all of which can inform decision making. It doesn’t mean that your plans have to change, but if the finances don’t add up, you may need to adjust your time frame or put other actions in place to make the goal achievable.
Although finances are essential to business success, many business owners find bookkeeping an arduous task. They have a passion and knowledge in their specialist field and are aware of their expenditure and income, but the paperwork often gets put to the bottom of the pile. When you are busy ensuring that your customers and employees are happy, whilst maintaining your quality, price and services by aiming to keep one step ahead of competitors and new technology, it’s no surprise that there is little time for bookkeeping.
What’s more bookkeeping doesn’t have the same appeal as a new marketing campaign, a product launch or the recruitment of another member of the team. However, without it you could be missing out on important business information and may run the risk of fines if your tax returns aren’t completed in time.
The solution is to outsource your bookkeeping to a professional team of accountants. With extensive knowledge of financial paperwork, it will take a bookkeeper a lot less time to get things straight. If they are given the appropriate authority, they can even complete your tax return on your behalf, taking a huge weight off your shoulders.
It can be daunting to allow someone access to all of your financial records, so you may want to talk with a few different bookkeepers to decide which one you feel comfortable to share your financial records with. In addition, if your paperwork has got into a complete muddle, you may feel embarrassed, but they will have most likely seen worse. If you are looking for professional bookkeeping, Oxford based RCH Accounts https://rchaccounts.co.uk/bookkeeping/ have the knowledge and experience to get your financial records in order.