How to avoid cashflow

Here are two startling statistics of start-up businesses:

·         One in four businesses don’t make it through the first year

·         More than half don’t survive past the fifth year of trading

There can many reasons for this, but one of the main reasons for this is down to cashflow – without it, a business simply cannot stay afloat. Below are some of the most common cashflow problems and some advice on preventing them from occurring in the first place.

Keeping accurate company records

Lots of new business owners put off bookkeeping duties as they are so busy with the huge workload that can be involved with setting up a new company.

The longer the books are neglected, the worse the problems will get; records and forecasts are pivotal to you knowing what is happening in your business.

It’s also important to ensure that you keep a proper record of what customers have and haven’t paid you to avoid significant sums of money that may owed to you getting overlooked. An effective accounting system is vital to manage your cashflow.

If you don’t have the time to do this yourself, an accountancy practice or bookkeeper will be able to do this for you.

How to manage company debts

Slow payers or bad debt is money that is owed but not paid.

This can be crippling for any new company but is usually preventable if a proper credit control system is put into place early on. If you discover that a customer has a poor credit record but you still want to take them on as a client, ask them for an upfront deposit or issue partial invoices so they can pay as portions of the work are completed. In other words, understand your customers and manage the risk.

A customer at any cost?

Calculate very carefully if want to offer credit terms - does your business model support it? If it doesn’t work early on don’t do it; you can always introduce credit terms as and when the business can afford it.

If you are currently in this situation then re-negotiate terms with your customers and/or suppliers or consider factoring the debt.

No cashflow forecast

A cashflow forecast is vital for any new business and is something that a qualified accountant can put together for you. This will allow you to forecast the months you can expect to see a cash deficit and the months when you may experience a surplus.

It will allow you to plan ahead as well, as give you a pretty good idea of how much cash your business is going to need over the next 12 months in order to survive. It is a good idea to keep the forecast on a rolling 12 month basis.

Free of charge accounting advice from Chartered Accountants

Omni Chartered Accountants offer totally free of charge advice for any business – new or otherwise – that may be experiencing difficulties. We are also here if you or would like to find out more about our cost-effective solutions that are designed to help your company run smoothly.

Call us now on 01902 837 408 or request a free of charge call back from our website today!

Guide to selling your business

Are you thinking about selling your limited business?

Maybe you’re considering retirement or going back into full time work?

If you want to sell all the assets that you’ve accumulated from a company which is no longer trading, then you may have to pay Capital Gains Tax. This applies when you’ve made a profit on the original price of what you’re selling.

The regular rate of Capital Gains Tax is 18%, or 28% for people paying more than the basic rate of income tax.

However, applying for Entrepreneurs’ Relief allows sellers to only pay a reduced rate of 10% on the sale. This incentive was introduced in 2008 to encourage people to set up and grow businesses, creating jobs and economic growth.

Guide to selling your business

For details regarding eligibility rates etc. take a look at www.gov.uk/entrepreneurs-relief/eligibility or call Omni Chartered Accountants for free of charge, impartial advice on 01902 837 408!

Refer colleagues and associates to Omni and earn commission or credits!

From day one Omni Tax and Accountancy Solutions Ltd has received referrals.

So we have decided to introduce an official thank you!

You already know how good we are, we like working with and for people and businesses the are recommended to us. Now everyone can benefit with our clear and simple referral programme.

Choose your reward!
Credits:
Every time you refer a client that takes our service we will give you a voucher to be redeemed against our own services.
A: You can get your full years accountancy costs covered.

Commission:
If you would rather be paid for each referred client that takes our services, we will pay you 10% of the first years charges.

In addition we will also give your referred client a 5% reduction on their first years fees!

Just call or email us today on -
andyc@omnitas.co.uk
01902 837408
07812 988065

Don’t delay – file your self-assessment tax return today!

The self-assessment tax return is an unavoidable burden if you are liable for self-employed tax or have more complicated income tax affairs.

Both self-employed business owners and company directors must complete self-assessment tax returns. The right approach to your self-assessment tax return will minimise the aggravation and can reduce the income tax you end up paying.

Our guidance will help you understand the key issues you need to deal with. For help with the specifics, talk to Omni Chartered Accountants; our expertise should save you both time and money.

Registering for self-assessment

There are a number of circumstances under which you may be required to complete a self-assessment tax return. For example, if you:

• Are recently self-employed or have become a partner in a partnership;
• Are a company director
• Have untaxed income — perhaps from rental property — or complicated income tax affairs
• Have an income of £100,000 or more
• Need to pay capital gains tax
• Have expenses to claim

You can find out if you need to complete a self-assessment tax return on the HM Revenue & Customs (HMRC) website, or by giving us a quick call on 01902 837 408.

Don’t delay – file your self-assessment tax return today!

Before you can complete your first self-assessment income tax return, you will need to register with an accountant or with HMRC. You should register as soon as your circumstances change but certainly no later than the 5th October after the end of the tax year for which you need to submit a form.

Why accepting help is a sign of wisdom, not weakness

It is more common than you think for people to consider that accepting help is a sign of weakness.

Actually, it’s a sign of wisdom!

While it may sound simple enough, accepting help is something that can be extremely challenging for all of us at one time or another.

It can be especially hard for those of us that believe that seeking help undermines our independence and our ability to cope. 

However the truth is that by refusing to accept help, we ignore the fact that we are social beings who need to co-operate with one another in order to ensure that we thrive.

Seeing seeking help from others as a weakness is often a very ingrained pattern of thinking and may therefore be hard to overcome. 

Why accepting help is a sign of wisdom, not weakness:

• Is this affecting you or your business?
• Consider exactly why you think that asking for help is a sign of weakness
• Work through how not wanting to ever seek help is reinforced by unrealistic ideals and wishful thinking
• Look to reality instead of relying on wishful thinking

Whatever your challenges or issues, why not seek support? It may just be what you need to do right now.

Omni Chartered Accountants specialise in offering free, impartial advice to prospective clients and existing ones - If you have a problem and feel we could help, why not request a free of charge call back from our website or enquire online today!

The Taxman can raid tax evaders’ bank accounts

Did you know that HMRC has been given sweeping new powers to raid bank accounts and cash ISAS to recover outstanding tax debts?

The Chancellor, George Osborne, gave the green light for this new move, meaning that anybody who refuses to pay money owing to HMRC can now have the cash taken directly from their bank accounts.

Around 17,000 people who owe an average of £6,000 could be targeted each year.

This move is part of a major Government crackdown on tax evasion but has been widely criticised, so HMRC has been forced to introduce a number of safeguards.

Government crackdown on tax evasion safeguards

• People targeted must always have at least £5,000 left after any raid on their accounts
• Every debtor will first be asked to attend a face-to-face meeting with a tax official, and can go through a county court appeal process

These safeguards were introduced after claims that any mistakes could mean innocent and vulnerable people could be unfairly targeted.

The Taxman can raid tax evaders’ bank accounts

If you have a pressing tax or any HMRC issues get in touch and we will be able to advise you of the best and most course appropriate action; request a free of charge call-back from our website, call 01902 837408 or click here to contact us today!

Do I need an accountant?

You might think that a start-up or small business isn’t big enough to warrant an accountant.

But unless you’re an expert in tax and finance – or in short, an accountant yourself – this simply isn’t the case. An accountant provides your business with a great deal of essential support.

If you are just starting a business, your accountant will take the form of another business adviser. They will be able to give advice on your business plan and the tax issues of registering a new business.

Some accountants offer book-keeping services, but if they don’t or if you wish to handle this yourself, you can get help with setting up manual or computerised book-keeping systems. And most importantly, you need an accountant to assist on things like whether it is necessary to register for VAT or PAYE and the procedures involved.

As your business grows

An accountant isn’t just there to help you manage your money. Whether you are starting up or a growing business, they can advise you on the best way to arrange additional finance without putting your business at risk.

Once you have the finance in place there needs to be some control to ensure growth of your business is handled in the right way. Many of your concerns will be financial – adequate working capital, good stock control, invoicing and so on – an experienced accountant’s advice will be invaluable in such matters.

And can you honestly say that you are on top of all the essential business tax issues? Well probably not – but that’s an accountant’s job. Taxation is a large business expense and an accountant can effectively minimise these costs.

Finding a competitive professional chartered accountant

Omni Chartered Accountants, Wolverhampton, offer a highly competitive and professional service to clients across the UK. We pride ourselves in giving advice on a one-to-one basis and we are very happy to provide you with a free initial consultation – you can request a free of charge call back from our website or call 01902 837 408 – alternatively, click here to contact us online and we will come straight back to you!