Managing Cashflow
In our latest animated video we show how with a little bit of help from your accountant and a cashflow forecast report, you can budget for new equipment that is needed in your business.
In our latest animated video we show how with a little bit of help from your accountant and a cashflow forecast report, you can budget for new equipment that is needed in your business.
As we prepare for the impact of Brexit, our European Union customers could be entitled to some VAT-free services.
Any business that is expecting their taxable supplies to be less than £83,000 (which is the deregistration threshold) for 2021 can deregister from VAT on 31st December 2020. Alongside this there are other scenarios of non-chargeable VAT.
If you are a business supplying to a consumer (B2C) that is a resident outside of the EU then no VAT needs to be charged. As an example, if you provide accountancy services to an EU country then prices will need to include the 20% VAT but if the customer is outside the EU (for example in Johannesburg) then no VAT is charged.
As of 1st January 2021, legislation is being changed so that services provided to customers who are not in the UK, but who still remain in the EU, will not be charged VAT. This means that outside of the UK no VAT charges will apply for the direct business sales of items to consumers. Full details can be found via this link – https://www.legislation.gov.uk/ukpga/1994/23/schedule/4A.
Although companies can deregister for the VAT scheme if they will be solely working with clients outside of the UK, it is their choice, and they can still remain part of the scheme. This then means that any work within the UK which they receive from a supplier, classed as input tax, enables them to claim back as UK expenses.
In summary the new regulations coming in to force on 1st January 2021 will provide some VAT saving opportunities for UK suppliers of business-2-consumer products dealing with any company outside of the UK. The key benefit will be a decrease in tax yield from the HMRC.
If you have any questions or need some help in regard to VAT charges please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.
The word adapt has never been so important. In today’s unusual landscape, the impact of the Covid-19 pandemic has affected everybody. Every business has had challenges to overcome and virtually all have had to adapt. The key element for most businesses was the need to embrace the digital world and implement key changes to stay connected with staff, clients and suppliers.
In the world of accountancy, the perception is of a behind-the-scenes company specialising in crunching numbers, completing mundane tax returns and taking care of payroll. However, modern accountancy practices are becoming a far more valuable asset, especially with the introduction of new technologies. Adapting to becoming people focussed and data-led is a must for any proactive accountancy firm. Where the use of technology allows for virtual conversations, managing data, creating automation and much, much more.
Real-Time Data
Having management data on hand that provides accurate and real-time information along with key insights is vital for any business. An accountant will process a lot of data and often will know much more about a business than its employees. Providing real-time data allows a business to effectively plan and manage both finances and business objectives.
Accurate Data
Remaining one step ahead is vitally important. Having accurate data on hand so immediate decisions can be made is crucial. Gone are the days of taking months to process business receipts and then manually checking figures for inaccuracies. Robust data is at hand for any business to use for making informed business decisions such as salary reviews, profit and loss analysis or payroll benchmarking.
Cloud Accountancy
One of the most effective accountancy solutions for a business is the switch to cloud accountancy. Utilising solutions such as Xero, QuickBooks or Clearbooks can be game changing and will help to tackle pain points. For example, late payments can be flagged immediately so that cash flow planning can be effectively managed.
A New Style of Business Coach
The role of an accountant is so important to any business. Over the past couple of years with advances in technology, the ever-changing business landscape and market demand, a business must have immediate access to all of their financial data. In fact, gone are the days where you don’t have any interaction with your accountant until the obligatory end of year accounts, they now form a vital part of a business. Building personal relationships of trust, advice and guidance is critical for an accountant to be recognised as an important cog in the business wheel. Today’s accountancy role can be seen as more of a business coach where advice can be given on data analysis, strategic growth guidance and diversification.
Should you have any questions or need some support please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.
Do you know what you can purchase in order to say thanks to your clients for their support in 2020? This animated video provides full details one what options you can select along with the money you can spend.
The farming industry is unique. It is one that supports the entire country through produce, crops and livestock. When you envisage a farm as a business then you realise quite how many variables there are to it and what a complex operating structure it has. Key areas that have to be constantly monitored are government subsidies, changes in use of land and environmental impacts. All of which can have an impact on both profit and loss.
When you consider the accountancy practices of a farm there are multiple factors to take into account, including assets, liabilities, costs and revenue. This can make it a very complex process, so we have pulled together to key areas to consider:
If you are looking for some accountancy support for your farm, then our team at Stepping Stones would be delighted to help. Feel free to call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.
Distractions are a day-to-day occurrence for any business owner. To ensure a business runs smoothly it’s not just about meeting the needs of your clients, you also have to make sure that your staff are OK, your marketing is working and perhaps most importantly that you have the correct accountancy infrastructure in place. Does a business owner really want to commit a large proportion of their time to ensuring that they stay on top of their accountancy needs?
This is where a Management Accountant can really help, saving a business owner both time and money. Aside from taking care of the monthly needs such as payroll and VAT returns, a Management Accountant can really embed themselves into an organisation and become a valuable resource to any business owner. They can assist with:
These are just a couple of examples; the role of a Management Accountant is diverse but ultimately it is to assist with the strategy and direction of a business. Of course, with no two businesses the same, a Management Accountant has to be able to adapt to each and every individual customer. A small business with 3 employees and turnover of £200,000 will clearly need different support to a medium sized business with 100 employees and a turnover of £5 million.
A good Management Accountant will not try to steer their clients into a “one size fits all mentality”, instead they will embed themselves into an organisation and adapt their own processes to suit the requirements of that of the individual client.
Should you have any questions or need some support please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.
Do you know what the self-assessment deadline is? Do you know what expenses you can claim? This video will explain all about it.
Individuals operating in the Construction Industry need to be aware that from the 1st March 2021 there will be a change in how VAT will be handled. Originally these changes were due to start in October 2019, but they were delayed initially due to Brexit and then subsequently by the Coronavirus pandemic.
The VAT domestic reverse charges for the construction services is, in essence, an extension to the Construction Industry Scheme (CIS). It will apply to any business transactions between VAT registered contractors and sub-contractors that have to be submitted under CIS.
Reverse charges will apply when:
According to the HMRC, they have introduced this initiative to help combat fraud. There have been many cases where construction businesses charge VAT and then decide to stop trading which ultimately means that they take with them between 5% to 20% of additional profit due to the VAT that they have charged.
Ultimately, as with any change of this nature, a business will need to make some significant changes:
In summary, the construction activities that VAT reverse charges apply to are:
Should you have any questions or need any further information in regards to the VAT reverse charge scheme please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.
More and more people are setting up their own businesses as a result of COVID-19, whether it be because of redundancy or just taking a fresh look at life following lockdown and deciding to make a change.
When these businesses start out though they only have a small client base, so for these vendors the quickest route to get their goods or services to a larger market can be via a third-party online marketplace such as Etsy or Amazon.
Whilst this is an attractive and seemingly simple way to reach new customers, there are some considerations that need to be taken into account when selling in this way, such as commission fees, transaction charges and VAT charges. Things to be aware of include:
The rules can seem somewhat complicated so if you are unsure about how they apply to your business it is important to seek advice from and accountant who will be able to clarify what VAT payments are due.
If you have any questions or need some assistance then please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk
In our latest animated video we give an example of how simple it is to outsource all of your accountancy needs to Stepping Stones.