09 Aug How to make your financial year end a stress free one.
How to make your financial year end a stress free one.
Running a small business can be stressful. Business owners often have to do everything, from sweeping the floors to cashing the cheques, but one thing that most owners really dread is the end of year tax return.
To help businesses, we’ve asked three SMEs what advice they would give others when preparing for the end of the tax year. Here’s what they said:
James Riley, Retail Store
“I used to leave everything to the last minute and endure late nights, but now I prepare well in advance. As I move through the business year I keep track of receipts – stapling them to a piece of A4 and writing an explanation alongside is helpful. And with tools such as Excel and other basic bookkeeping packages the whole job has become even easier. As well as paper copies, I have everything entered electronically too. This gives me a good idea where my business is at”.
Victoria Wilson, IT Consultancy
“I maintain my bookkeeping for the tax year by using Xero, a cloud accounting system. It allows my accountant to log sales, returns and itemised deductions into one simple place. It places all of this information into the schedules so at the end of the year, all I have to do is pull up the schedule information, fill in the information on my tax form and it’s done. Also, having instant real-time information about ones business, this can be very useful or occasionally stressful ”
Sarah Broughton, PR and communication
“I was never any good at keeping on top of business finances – which usually involved all receipts and invoices being thrown into a folder and then trying to add all of this into a spreadsheet once or twice a year in a mega rush. Now I use Xero, a cloud book-keeping and accounts management system; it has simplified my business financial records and has made life much easier.
Xero allows us to have constant access to real-time results and it links to my business accounts so that transactions are automatically pulled through and matched. Paper records are a thing of the past – I take photos of receipts and link them to the transaction and I can instantly forget about them.
Xero gives my accountants instant access to everything they need and ensures a smooth end of tax year when they come to complete my year-end accounts, self-assessment tax return and all company returns.”