Accounting Challenges for Your Small Business

By 31st July 2019 Latest News, Payroll, SME, VAT

It may not be your biggest passion, but accounting is one of your biggest responsibilities as a business owner.

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Successful small businesses must be expert in managing their finances. If you are not completely up to date and confident with the latest accounting regulations, you will soon run into problems. In this article, we discuss some of the most common accounting challenges you will face in your business. Plus, our best solutions to help you improve your financial management. 

Making Tax Digital – How does MTD affect my business?

Making Tax Digital is a rolling program, with the government phasing in the scheme over time. MTD for VAT started in April, so, the clock is ticking for you to adapt to your new responsibilities as a business owner. If your business is eligible, you will see major changes to the way you handle your finances and tax compliance. Without professional advice the do’s & dont’s for MTD may overwhelm you.  HMRC have warned penalties will be issued to businesses failing to adequately comply with MTD for VAT. Although, HMRC confirmed they have relaxed the digital reporting requirements for the first 12 months of MTD for VAT, known as the ‘soft landing period’.

How can EKW Group help my business with MTD?

We offer a hassle-free solution to make sure your business is ready for Making Tax Digital. Our Accounting Operations Manager, Kelly Street, explains what makes our service stand out…

“As ‘Gold Champion’ partners of the HMRC recognised software, Xero, we help our clients navigate the changes for their business and remain compliant. Being ahead of the curve with compliance regulations works to our clients advantage, with forward planning and technology, we improve data accuracy and business efficiency. For our current clients, we have provided a seamless transition to MTD, so they always receive the same, excellent service. All our clients receive the new MTD for VAT compatible functionality with no extra fees and no need to upgrade.
Our team are always happy to answer any questions and provide advice. We don’t stop there, we are Xero migration experts. So if we don’t work with your business already, we can offer an efficient transition to get you started on your digital journey with us.”

Need a refresh? What is Making Tax Digital?

Just a recap, Making Tax Digital (MTD) is a HMRC initiative. It’s designed to make sure the UK tax system is effective, efficient and easier for taxpayers. MTD for VAT is the first major stage launched as part of the wider Making Tax Digital scheme. MTD for VAT makes it mandatory for VAT-registered businesses above the £85k threshold to keep records and submit VAT returns digitally using HMRC approved software, such as Xero. Last year, the government announced a six month extended period for complex businesses until October 2019, when MTD for VAT will be compulsory for all mandated companies.

Payroll – What are the challenges?

More than likely, payroll is the biggest expense in both time and money for your company. When the dreaded task of processing the payroll rolls around, from Auto Enrolment to payroll taxes, things can get complicated quickly. This all adds to more time spent on the biggest HR function for your business.

Why is it so important to get payroll right?

Our Payroll Manager, Kirsten Croston explains. “First and foremost, you are legally obliged to pay all your employees. Failure to pay your employees on time will result in legal penalties. Also, employees need to feel confident they will be paid accurately and on time. A late or incorrect payroll can really harm employee morale, resulting in poor productivity and a negative work environment. Payroll also has an effect on the reputation of a business, complying to legislation and efficient processing improves the image of the business as a reliable employer. Ultimately, the payroll process can determine the ability of the business to recruit and retain the best talent.”

What makes the EKW Group service stand out?

EKW Group have a comprehensive, BACS approved payroll bureau which deals with 1,000’s of payrolls. The smallest being a one-person limited company with 1 payslip per year and our largest weekly payroll covers over 2,000 employees. For us, no requirement is too big or small. We can accommodate simple things such as payslip branding to more complicated issues such as Auto Enrolment. We can offer you a fully managed service that is tailored to your businesses needs.

When changing payroll providers, it can be quite a daunting task. But it doesn’t have to be, our friendly team are on hand to guide you through the process with ease. We’re proud of our customer service, when you need that reassuring advice with your business you can be confident that we are here to help you.

Cash flow problems – Are cash flow troubles keeping you awake at night?

If you have stayed awake at night worrying about cash flow for your business, you are not alone. A recent study by Intuit Quickbooks, the State of Small Business Cashflow, found 69% of small business owners lose sleep from worrying over cash flow. This is a worrying statistic, especially as small business owners have so many other considerations; keeping you customers happy, keeping your staff happy, and all while trying to create some form of work/life balance.

Is there a solution?

A simple answer, yes! We help our clients create an effective solution to their problems. We understand that cash flow issues are not always a sign of a bad business idea. Usually, they may often highlight a problem with your business processes. That is where EKW Group come in, we provide actionable advice and support to streamline your business functions.

EKW Group specialise in accounting, payroll and business solutions for franchise operations. For more information, speak to a member of our team.

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