Basics about VAT:

Apart from paying VAT for your business purchases, you can take VAT for your service. Whether you are a product-based or service-based company, you can charge your customers with this tax. However, you can register for VAT when your total annual turnover is more than £85000.

What are the Categories of VAT Rates?

The VAT rates vary according to the goods and services supplied by your company. You can get in-depth knowledge from reputed financial services in Yeovil. Below are the basic four categories of the tax:

• Standard Rate: The default rate of VAT in the UK is 20%, which is active from 4th January 2011. It is applied to all types of Goods and Services that do not fall under any exemption. The Standard VAT Rate was changed a number of times before being fixed to the current number. This was an attempt to mitigate the budget deficit in the UK.
• Reduced Rate: The reduced VAT rate is 5% and applies to certain goods and services. This includes domestic fuel, power and some sanitary equipment. Hospitality and hotel accommodation services were put under this slab during the COVID-19 Pandemic.
• Zero Rate: This is an exemption charged on services like food and drink, children’s accessories and books. You should know that the zero rate exemption does not apply to restaurants and takeaway services. If your service is eligible for Zero Rate, you do not need to register for VAT. However, you have to apply for an exemption.
• Exempt Supplies: There are different services that are exempt from all kinds of VAT. This includes education, finance and some health services. The business providing exempt supplies is not supposed to register for VAT. If you consider filing your business to VAT for exempt supplies, you may face difficulties in claiming the input taxes.

Applying for VAT makes your business compliant with the financial laws of the land. You should ensure to get proper guidance before going on with the process. Consult Whites Chartered Accountants, one of the reputed financial services in Yeovil. We can provide a customised solution for registering your business to VAT and calculating the annual tax.

Common Services Offered by Professionals at White Chartered Accountants

• Bookkeeping Services

It is a vital part of every business. If you don’t have sufficient knowledge about income statements and balance sheets, hire a bookkeeper. They will help you to maximise your tax exemptions and offer advice to increase your business cash flow. They are well-aware of the various types and methods of bookkeeping services and can choose which type and method are ideal for your business.

• Preparation Of HMRC Investigations

Since tax fraud is one of the primary reasons behind the crackdown of financial crime all over the UK, HMRC tax investigations are critical. HMRC deals with tax frauds through various procedures. Hire an accountant is Yeovil, and he will help you prepare for HMRC investigations. He will minutely scan your tax returns and point out the mistakes. Outsourcing this service is quite profitable if your business has the required resource.

• Prepare Annual Accounts

Almost every professional offering Financial services in Yeovil knows how to prepare annual accounts. All the registered companies in the UK have to prepare it for Companies House and HMRC every year to report the financial activities of their organisation. Annual reports will keep your shareholders informed about the financial status of a company. 

Since you are now aware of the common services offered by an experienced accountant, it’s time to visit one of the reputable accountancy firms in Yeovil like White Chartered Accountants.

Know Why to Hire Accountants for Startups

Given the number of failed startups every year, it is crucial to hand over the business’s legal and financial matters to a professional. You can get your desired services by hiring business accountants in Yeovil without worrying about any mistake or error.

1. Start at the Right Foot

A significant benefit of hiring an accountant for the startup is that it gives you a fresh and accurate start. While launching the business, the accountant can advise you regarding the business structure, the correct methods of proceeding, opening a bank account, setting up accounting software and more. They also provide the necessary support while hiring new employees by managing the tasks seamlessly.

2. Tricky Tax Laws

Running a new startup business is not easy. The tax laws are complicated, and you should handle them with extreme proficiency. This is where the professional accountants can come to your immediate rescue. They will keep you updated with the latest tax laws and changes, additionally helping you strategize the perfect plan for tax expenses and deductions. You can assuredly maintain the business finances without incurring any unfortunate loss.

3. Benefit from Professional Legitimacy

Hiring a professional person to take care of your business accounting gives you guaranteed legitimacy in front of all your key partners and clients. You can avail the advantages while asking for a loan. By showing the bank your well-maintained business documents, you can also enjoy long term sustainable benefits.

At Whites Chartered Accountants, we provide high grade and accounting services, taxation and business advisory. We cater our tailor-made services to different businesses at competitive price rates.

The chore of accounting is crucial to run small businesses and startups succeed. You can accurately extract all information about the finances. This way, you stay aware of business performance and can take steps for improvement.

Follow these Accounting Steps to Run the Small Business

These suggestions will give you the confidence to cover all the business bases-

• Opening a Bank Account

After registering the business legally, opening a bank account will help you stash all your income. With the right organization of funds, you can plan your taxes better.

• Expense tracking

Tracking the expenses correctly forms a strong foundation for the small business. This way, you can build all the financial statements, monitor the company growth, handle deductible expenses, see tax returns, and more. There should be a system for receipt organization too.

• Bookkeeping

The process of accounting is high level. Look at the company progress and let the bookkeeper compile all the data. The other tasks include –

1. Building strong financial statements  
2. Making the entries in the journal 
3. Preparing the Book of Final Entry 
4. Adjust the trial balance 
5. Adjust or balance all the entries  
6. Close temporary accounts

• Choose between accounting modes

Select which account type is suitable for the business-

1. Cash Accounting: Recognizing the revenue and seeing whether it is paid or received. 
2. Accrual Accounting: Monitoring the revenue once the transaction occurs. Also, keep the payables and receivables.

• Investigate the import and sales tax

This highly depends on the model of the business. Always abide by the tax guidelines in both domestic, national, and international segments.

At Whites Chartered Accountants, we provide top class accounting, taxation, and business consultancy services to a wide range of business verticals. We help you succeed by evaluating all your accounting methods from time to time.

Chartered Accounting

Chartered accounting includes several different aspects of accounting, such as fund management or annual fund auditing. A chartered accountant is responsible for all the domains. He or she bears the responsibility of keeping your books in order. They must ensure that all financial transactions are accounted for. A chartered accountant is authorised by a recognised accounting body to provide such services.

Bookkeeping Services

Business accountants in Yeovil can also take care of bookkeeping. This essentially refers to maintaining accurate accounts. All accounts receivable and payable are monitored under these services. Usually, a bookkeeper has to work with an accountant in a small business to take care of the accounting records. Today, there is a lot of advanced accounting software available on the market. A bookkeeper is responsible for choosing and maintaining the right accounting software for the business.

Tax Accounting

As the name suggests, tax accounting is related to tax compliances that a business might face. Whatever the nature of your business, you have to pay your taxes regularly. To comply with all regulations, a professional tax accountant becomes essential. He or she ensures that all taxes are paid on time. They also make sure that no penalties are faced. Further, if there is any scope for avoiding unnecessary taxes, a tax accountant can help you do so.

Accounting Audit

Audits are carried out regularly in every business. A thorough financial audit ensures that the cash inflow and outflow of the business remain balanced. All financial transactions of the firm have to be tracked and accounted for. This is a rigorous job that requires an auditor to trace past receipts and records. A timely audit ensures the firm is financially viable. It also confirms that all transactions are legally valid.

Forensic Accounting

If there is any missing money in a business, it can create a big headache. A forensic accounting expert is needed to take care of such a situation. He or she takes care of any financial discrepancy in the business. Such services need a sound knowledge of financial transactions and laws. A company can face charges such as:

• Money laundering
• Tax evasion
• Monetary fraud

Thus, there are several t areas of accounting services that can help your business. Hiring professional business accountants in Yeovil can ensure better long-term financial conditions for the company. They can advise you on what steps you must take to rectify a possible financial crisis. Whites Chartered offers excellent accounting services to small and medium-sized businesses. Their reliable and quality services are available at affordable packages.

Know the Types of Accounting

Two common methods of accounting are cash basis and accrual. Cash basis accounting is required for smaller businesses. It acknowledges and records financial transactions between all the involved parties. The accrual-based accounting records all the commitments which have been or will be paid while the commitment is made. It even includes those funds which weren’t transferred. This accounting method is suitable for larger businesses.

Why is Accounting So Important?

Business accounting is very important so every financial transaction should be recorded. It helps business owners keep a track on the inventory, prepare the employees paychecks and understand the cash flow patterns. If you don’t have much knowledge about the federal, state or city tax laws, start looking for experienced business accountants in Yeovil. They have the knowledge and tools required to prevent a business from losing unnecessary money. They ensure that all your employees are getting paid correctly and taxes and other obligations are being fulfilled. They even analyse all the patterns and trends on which the profits and losses faced by a business depend.

Let Business Accountants Track your Business Performance

Experienced business accountants know why every bit of money coming in and going out from a business should be recorded. Not only do they record the information but also study them. The objective is to analyse the overall business performance, do the financial forecasts and determine a business’s longevity. If you want to maintain the reputation earned by your business over the years, you have to ensure that all your employees and clients are getting paid on time.

Business accountants will consider the services offered by third-parties and let you know whether you are wasting your money on a third party and whether the task can be done at a lower price in-house. They will also let you know if your budget is not sufficient to run a business successful. Since tracking business performance is so important for every organisation, hiring experienced business accountants is a must. They use their time, effort and knowledge to understand the cash flow of your business and look for innovative ways to improve their efficiency and functionality.

What is Management Accounting?

Management Accounting is an integral part of business accounting. Since tracking business performance is important for the health of your business, you should know the process. Just creating financial reports and analysing them is not sufficient. You have to hire a Management accountant. They will put together all the cash flow statements, accounts received, budgets, accounts payable and expense reports. They use their knowledge and experience when creating reports and using them to manage your business as there are no specific rules. A reputed Management Accountant will consider your needs and your business needs before making and using those reports.

Since your knowledge about business accounting has enhanced, it’s time you start looking for reputed accountants offering affordable services in Yeovil.

There are certified, experienced and licensed chartered accountants available in the UK who are ready to offer accounting services for their clients who have small business or start-ups.

• Prebuilt System

Outsourcing the accounting services for your start-up or small business means you are buying a prebuilt process which is customised for your business needs. The system is already tested and found useful. Hence, you do not need to get worried about the efficiency of that system. On the other hand, since it is prebuilt, you do not need to waste your time in the procedure of development, testing and running.

• Customised Process

The companies which deliver accounting services to their clients are always ready to serve them with the customised process. The system will be developed and delivered to you, keeping your core business needs in mind. You can have what you really need.

• High-End Technologies

To keep all the accounting records of your business neat and clean, you need high-end technologies. The top companies that provide accounting services to others always develop their systems with state-of-the-art technologies. This is to ensure flawless accounting. At the same time, it will reduce your effort and help you to get the results faster than before.

• Privacy and Security

All the top companies that are involved in outsourcing accounting services maintain strict policies to protect the privacy of their clients. You can be completely assured about the security and privacy of all your data. They have special apps to protect the data you have shared with them to obtain the service.

1. Save Money and Time

The two most challenging parts of small business are lack of fund and lack of manpower. When you have the support of accounting services from a trusted source, you can save both these factors. You do not need to hire an in-house accountant or team of accounting executives, which is a cost-saving option for you. At the same time, you do not need to get involved in the time-consuming works of account management. Hence, you can save both time and money by hiring this service from a trusted company.

• Obtain Wide Range of Services

Accounting service means the amalgamation of different tasks. It may include payroll management, invoice management, tax, revenue, daily wages and other types of accounting records. You can have assistance for all these segments under one roof. These companies offer a wide range of services for their clients within their budget.

• Obtain High Speed

If you fail to manage your accounting system at high speed, your entire business will suffer. The modern accounting service providers always consider speed as an important factor while delivering their solutions to their clients. When you use their virtual team, they will have a deadline to meet and never miss the same.

There are many other benefits of outsourcing accounting services. Some of them can be understood only once you start using the system. In fact, different business owners have explored different benefits on the basis of their individual requirements.

At Whites Chartered offers business accounting, taxation and business advisory solutions to various businesses based in Yeovil and the surrounding areas. For more information about our services, please get in touch with us.

DIY Or Hire An Accountant?

Since the focus of every business owner is on saving money during the initial days of their business, they think that they can manage the minor accountant tasks themselves instead of hiring a professional. It is a myth which you should debunk if you don’t want to end up paying more taxes and fines. Even if you have a limited number of clients, it will become a challenge for you to manage the bills going out and invoices coming in with little knowledge in accounting.

You should know how to categorise bills and assign the right codes of transactions. Moreover, your time is very valuable when starting your own business and there’s no use wasting your time on minor accounting tasks. The best you can do is to utilise your time in doing tasks you excel in and let a chartered accountant manage your accounts. They also know how to make filing end of month accounts smoother.

Few More Reasons Why A Small Business Also Needs A Chartered Accountant

Advice On Legal Structure

A majority of the accountants in the UK have years of industry presence and know how to operate different types of businesses, irrespective of it being big or small. They understand that the legal structure of a limited company is completely different from that of a sole trader or LLP (limited liability partnership). The right professional will not only advise you on the legalities involved but also help you design a legal structure which will suit your business the best. To get a better understanding of your company’s structure and the tax system, they will ask you whether you have employed staff from the outset or operating out of your home.

Pay Importance To Your Finance

The importance of your finances during the initial days of running a business can never be ignored. Over time, the figures on your account will also increase. If you try running your accounts yourself instead of hiring chartered accountants in the UK, there is a high chance for you to miss a few invoices and they might become overdue. You might also make errors if you manually check the invoices. A chartered accountant will implement the right accountancy software so you can keep track of all the invoices. Some of them even have automatic reminder features so you can rest assured that you won’t fail to pay the bills.

Set Up Your Business The Right Way

Though every business owner feels that they know how to set up a business, only a chartered accountant know how to set up a business for growth. Work starts picking up over time and you need a professional who can help your business grow the right way. The more people you employ, you have to spend more time on the tax and PAYE implications. The accountant will enter every information about your new employee into the system so you know your tax obligation from the starting.

These being said, you now know why you need a chartered accountant even for your small business.

 4 Tips By Chartered Accountants To Recover Your Business After The Coronavirus Pandemic

 · Take The Aid Of Government For Assistance

The government is planning to announce a few measures which will help companies reduce the pressure on their business. Small businesses will be given special grants in the form of tax relief which will help in meeting the ongoing costs of their business. If you feel the Government assistance will be beneficial for your business, utilise it. You can also take a short-term loan.

 · Conserve Cash

Business owners know how important cash is if you want your business to run smoothly. Companies might experience a deficiency of cash during the Coronavirus pandemic. The easiest way to handle the situation is by limiting all non-essential spending. If you are not aware of the various ways you can conserve cash, get in touch with experienced chartered accountants in Somerset.

 · Focus On Core Competencies

If your company has adopted a new venture outside your core business during the coronavirus pandemic, let your chartered accountant craft a suitable business expansion strategy. They know the various ways your revenue base can be diversified. They will also let you know whether you have to hold back some venture so you can conserve cash.

 · Change Strategies For F&B Businesses

The impact of the Coronavirus pandemic lockdown has been quite drastic on the food and beverage industry. Owners of coffee shops, pubs, bars, cafes and restaurants have suffered huge losses. If you want to recover your business fast, take the aid of experienced chartered accountants. A shift in strategy will let you take advantage of the take-away model. If the lockdown is still prevalent in the area you are staying, pubs and restaurants can move to a home delivery model.

 Time to follow the tips stated above and you can recover your business easily after the Coronavirus pandemic.