The Basics of Business Accounting

If you are planning to launch your own business, you will need the services of an accountant, and the sooner you talk to one, the better. A qualified chartered accountant can offer you sound advice about how best to form your company, and by setting up a bookkeeping framework, your accounts will be much easier to audit.

• Income Vs Expenditure – The basics of business accounting is to record all instances of income and expenditure, and to do that you would use separate spreadsheets. The best approach is to make good use of available technology and have your accounts on an Internet server, which allows your accountant access at any time.
• Relevant Paperwork – It isn’t enough to simply record transactions, you also have to supply the relevant invoices and receipts that are numbered to tally with the spreadsheet. There are affordable accountants in Romford who can set up an accounting system that will take you less than half an hour per day to complete, and after a few months, your accountant can prepare your tax returns based on the bookkeeping you have done.

• Taxation – Your accountant would be able to help you with taxation, especially knowing what you can claim for as tax deductible and what you cannot, and a few weeks before your tax returns are due, your accountant would prepare your accounts.

Even if you are still in the planning stages of your new business, you should still make contact with a locally based accountant, who can help you to set up your business in such a way that is advantageous in more ways than one.