Business Account Services
Services:
◉ NEED of making tax digital:
VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns. But other businesses below the VAT threshold will be required to follow making tax digital by 2022.
◉ Making tax digital is future:
By April 2023, all landlord and self-employed businesses with annual income above 10,000 are required to follow MTD rules, highlighting the importance of adopting MTD. Even for corporation tax, MTD rules may be implemented by 2026.
◉ Significance of Making Tax Digital:
HMRC aims to become the most digitally advanced tax administration in contemporary economies. Making Tax Digital aims to provide effective and swift service for its users.
◉ What are company accounts:
They are also called statutory accounts. Company accounts provide a short compendium of financial activities of a company in the past 12 months. The statement of financial position provides insight into assets and liabilities of a company while the income statement provides a profit-and-loss profile in the past 12 months.
◉ Reporting requirement:
The profit and loss statement is mainly drafted to submit corporation tax 600 to HMRC. This report tells the tax authorities about the profit or loss an organization has made in the last year. Similarly, the statement of financial position highlights the assets and liabilities of a corporation. These reports are vital for all stakeholders and only qualified and competent persons should be assigned to this task.
◉ Non-compliance can cause serious issues:
Both HMRC and Companies House can impose penalties for late submission and a company can get deregistered from Companies House by failing to comply with accounts submission requirements.
◉ Importance of annual accounts:
Apart from the legal obligation to submit annual accounts to Companies House, these accounts can be an important source of information and reporting for other stakeholders as well. For example, creditors, suppliers, and customers want to know the financial health of a business before entering into any business arrangement. If a company is making losses, then most banks will view this as a high-risk factor and may stop or reduce their lending to this company. Investors in private companies are usually informed through board meetings and management accounts, but annual accounts are essential for a comprehensive financial overview.
◉ Partnership Accounts for Businesses:
If you are in a business with other partners, then all the partners have a statutory obligation to file their partnership accounts along with self-assessment. Businesswise helps you fulfill partnership accounts obligations.
◉ Dormant Company Accounts:
A registered company is legally bound to submit annual accounts even if that company is dormant. So, if you registered a company but it is dormant, then you still have to submit dormant company accounts. Businesswise can submit and update your accounts and notify both HMRC and Companies House to avoid any serious consequences
◉ Confirmation Statement:
Companies House requires any company to file a confirmation statement to inform Companies House about any changes in that respective company. We at BUSINESSWISE keep an internal reminder for all our clients to inform them of the confirmation date. We invite clients in advance to submit a confirmation statement to keep their information updated on Companies House.
◉ Sole Trader Accounts Support for Self-Employed People:
If you run a self-employed business, then your only obligation is to file an annual self-assessment return to HMRC. We help you maintain your record, complete your annual return, and finally submit it. You will benefit from expert advice on what tax to be paid and how to maintain your record for income and expenses.
◉ Other Company Services:
We at Businesswise Accountants provide a range of other company services both efficiently and reliably. We can help you file confirmation statements, share transfers, voluntary company wind-up, dividend support services, registering a new company, and helping open a new bank account for your business. Our mission is to provide all these services at competitive rates with the highest quality of service rendered to all our clients.
◉ Importance of management accounts:
Although there is no legal requirement for a company to prepare or submit management accounts, these accounts help a company determine its direction against the certain key performance indicators set by the company. Performance evaluation is vital in motivating the staff and improving any deficiencies in procedures and processes. Management accounts are prepared mainly for internal controls, and any deviation and variances can be investigated further to get a true picture of business affairs.
◉ How it helps in performance evaluation:
Management accounts enable a business to review their performance. This evaluation can be divided into different departments to have a comprehensive analysis of which departments are underperforming and which are achieving their targets. As part of our core values, we intend to assist all businesses to gauge their performance against key performance indicators set by our in-house experts. Any variance is determined and then investigated for any particular reasons behind it. This will provide valuable insight for a business to succeed. Businesswise accountants will provide all these services under one roof.
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Whether you’re looking to optimize your tax strategy, streamline your bookkeeping, or navigate complex financial regulations, our team of experienced professionals is here to guide you every step of the way. Book your free consultation today and take the first step toward financial clarity and success!
