Small Business Startup Help
Do you need some small business startup help? It can be so hard knowing where to start on your small business, so I have put together some advice to get you started. I get a lot of businesses contacting me saying they have formed a Limited company registered for VAT, but do not know what to do next.
Do I need to form a Limited Company?
If you are a small business just starting out, quite often it is best to start as self-employed and see how the business grows. Sometimes there are reasons that your customers require you to from a Limited company. You can always change later, but it is harder to close a Limited company and go self-employed than the other way round.
Do I need to register for VAT?
If you are small and below the VAT threshold, you do not need to be registered for VAT. Check the current threshold rate at www.gov.uk. If you are just buying and selling items in the UK, you may find that being VAT registered works out better for you, or if you are selling directly to businesses they may require that you are VAT registered. Under registration, you will need to submit your returns every quarter, so may need more help completing the records.
Small Business Startup Help – Paperwork
Keep all your invoices and receipts that relate to the business together either in a file, tray or envelope. It makes it much easier when you come to prepare your accounts. You need to keep most paperwork for at least six years. It is best to keep on top of your accounts and update your records on a regular basis.
What expenses can I claim back?
You can claim nearly all expenses that relate to your business back, even some expenses before the business officially formed. Other main items that you can claim for include: computers, travel, goods for resale, rent, utilities, postage, and sub-contractors. Further details on claiming business expenses can are available at. LOOK UP EXPENSES
Accounts for the self-employed
If your small business is self-employed, you need to notify HMRC with details of when you started. You will then need to complete a Self-Assessment tax return each year. The tax year runs from 6th April – 5th April the following year. All tax returns need to be submitted by 31st January following year, you can complete it yourself, but if you are unsure it is worth getting and Accountant to complete it for you.
Accounts for Limited Companies
If you have formed a Limited company, you will need to submit annual accounts to Companies House each year. They need to be formatted correctly and on most occasions I recommend that you employ an accountant to complete this for you. There are software packages available that you can complete it.
Raising Sales Invoices
There are several ways to raise a sales invoice. If you use an accounting package, then sales invoices are normally included and can include your logo. There are also some templates available, just complete a search online to find one that is suitable for your needs.
How to complete your Small Business Bookkeeping
There are various ways to complete your accounts either:
Paper-based – If you only have a few items then you can just design your worksheet listing the income and expenditure. There are also analysis books available which will allow you to see the different types of income and expenditure.
A simple spreadsheet may be suitable; there is one to download for free on this website, which is easy to use with full instructions. If you do not have Excel, then there are free open source packages which you can use.
Most accounts software is all based online, you choose which package is the best for your business and pay a monthly fee. One thing that puts some people off using software is the cost. The advantages of using a package include:
- Can be quicker
- Issue sales invoices and statements
- Lots of reports available
- Can grow with your business
Conclusion – Small Business Startup Help
When you startup in business, there are lots of decisions to be made and how to complete your small business accounts is one of them. Completing research into the best way to set up your business and accounts is worth spending some time on. There are various places where you can obtain small business startup help and one of the best is Great Business.