Archive for the ‘Chartered Accountants Birmingham’ Category

How an Experienced Accountant Can Help with Company Registration

Wednesday, December 5th, 2018

When setting up a new business, there’s a lot to consider. From choosing the company name, all the way through to your employee’s first paydays, it’s likely that you’ll seek support and advice from all around you. When the time comes to register a company, delegating out roles within areas you’re unsure of to trusted professionals can be extremely profitable for your business.

One of the main areas new small business owners struggle with is accounting, often because they are, rightly so, focused on the business idea and getting it off the ground. Handing over the financial affairs to a trusted accountant allows you to concentrate on your passion for running the business, whilst also saving time and money.

Below we’ve outlined the main challenges you could face if you choose to go it alone in the world of small business accounting. However, we’ve also provided solutions. Working with an experienced accountant can help with the entire start-up process, including registration, complying with tax regulations and the day-to-day management of your business’ finances. Once you know what an experienced accountant can do for you, choosing the right one is straightforward.

Accounting challenges for new businesses:

If you’re considering starting a new business, you’ll already be aware of the huge journey you’re about to embark on. You’ll probably feel like you’re spinning hundreds of plates at once; just managing the financial side of things alone comes with a breadth of challenges. What with monitoring cash flow, keeping on top of expenses, setting up payroll, completing tax returns, understanding tax law, and predicting, recording and reporting on finances, the list feels endless.

However, there are three key challenges that you will face in small business accounting:

  • Setting up your business. This is an exciting but daunting time as a new business owner and it’s tempting to rush through it, which could be detrimental in the long run. Knowing how to register your business properly is not always clear, whilst creating an extensive business plan which includes a structured, in-depth financial analysis can also be extremely overwhelming.
  • Understanding taxes. Tax law is renowned for being very complicated, and with laws changing all the time, it’s difficult to keep up. Attempting to understand the ins and outs whilst also setting up your business can be very time-consuming and completing tax returns is no simpler – they are often referred to as an art form!
  • Recording all financial transactions. Otherwise known as bookkeeping, this needs to be done from day one, i.e. as soon as you start incurring expenses, even during the setting up of your business. Recording all financial transactions, from sales and purchases to payroll, can be extremely burdensome as it must be done in real-time and constantly maintained.

Clearly, there’s a lot to think about and bringing in expertise from elsewhere can, at the very least, lighten the load. But at most, working with an experienced accountant can make the above challenges much more manageable. Here’s how accounting experts can help:

1.   Advising on business structure and financial analysis

Creating the foundation for a successful business starts with working out which legal business structure best suits your needs. An accountant will explain the legal business structures available and help you to consider whether your business is a sole proprietorship, a corporation, a partnership or forming as a limited company.

Many accountancy firms specialise specifically in limited company formation and can make your company incorporation straightforward. They will help you set up with Companies House and HMRC; making sure you’re aware of all the information you need in order to register your company.

Once you’ve decided on your business structure, you’ll need to work on your business plan. Writing your company description, describing your product or services and understanding where you fit in the market will make perfect sense to you. However, the financial analysis is often the dreaded part, especially if you don’t have a financial background.

An experienced accountant can support you in writing this aspect of your business plan, as they will have worked with similar companies before and will understand your industry inside out. Making predictions for future growth and estimating expenses is second nature to them.

2. Offering a Chartered Tax Advisor

Complying with tax law and calculating your contributions as a business can be a lengthy and complicated task. In fact, small business owners in the UK lose around three working weeks every year to tax compliance. But, every new business must register for corporation tax and maintain their contributions. With the added pressure of trying to minimise your tax bill with ever-changing rules and regulations, it may feel as if you’ve barely got time to actually run your business.

A qualified Chartered Tax Advisor, provided by your accountancy firm, will do all of this for you. It is their job to manage your business’ contributions, remain up to date with the latest developments in tax law and also to understand the tax-related nuances between industries. Chartered Tax Advisors are dedicated to helping clients at any time of need. Should you need support through difficult legal processes involving tax, a qualified tax advisor can ensure you’re above board at all times, whilst remaining confidential and taking due care.

This level of expertise can only be offered by a Chartered Tax Advisor, as in order to receive their qualification, they must demonstrate a high level of technical knowledge and high standards of ethical and professional conduct, and maintain these standards throughout their career. The Chartered Tax Advisor qualification is internationally recognised; when you choose to seek advice from a Chartered Tax Advisor, you can rest assured that the support you’re given is certified, specialised and of the highest calibre.

3. Structuring bookkeeping and payroll

Bookkeeping is essentially the recording of all financial transactions in a business and must be extremely well structured. Inputting purchases, sales, receipts and payments can feel endless, particularly if you have a high transaction rate business, such as a restaurant. It’s a long slog of admin and probably isn’t where your passion lies. However, it is vital that you establish a solid bookkeeping system from the day you register your business and start making transactions, to ensure everything is done ‘by the book’ – if you’ll pardon the pun!

Accountants provide expert bookkeeping services to free you from handling this admin. They are passionate about completing rigorous and timely bookkeeping and based on this, you can measure the health of your business more accurately.

Similarly, if you’re a new business and planning to employ a team, your payroll must be a well-oiled machine. Setting up your payroll system is also something an experienced accountant can assist with. Calculating wages based on hours worked and making sure your employees receive payments on time can be managed by your accountant, so you can stick to personably managing and supporting your team.

Along with bookkeeping, setting up payroll may involve installing accounting software for your business, which will help you to manage your own payroll and bookkeeping in future. Investing in an experienced accountant to structure your financial data management at the beginning of your business journey will make for a much smoother ride along the way.

How to choose the right accountant

After weighing up the costs and deciding to hire an accountant, choosing the right one is fairly straightforward if you know what you want. Here are a few things to consider when choosing your accountancy firm:

  • What services do they offer? Work out what services you require. For example, you may have already employed someone to do bookkeeping and payroll in-house, but you still require expert tax advice. Most accountants offer a range of services, whilst some specialise in certain areas.
  • Where do they operate? Having an accountant who operates in your local area is beneficial as they’ll understand your market well and can meet with you regularly. However, the development of could-based accounting means location is less of an issue and can sometimes save you time.
  • Do they have experience in your industry? It’s important that your accountant understands your business and the industry it lies within. Speak to peers in your sector to find out which accountants they’ve used, or simply enquire at the firm where their experience lies.
  • What qualifications do they have? Ideally, you’ll choose a Chartered Accountant; their expertise is regulated by a professional body and is recognised by the government. You don’t necessarily need a certified accountant for more basic services like bookkeeping, but for expert advice on how to get the most out of your business, choose a qualified accountant.
  • Can they save you money? An experienced accountant will be proactive about saving you money, while some may simply manage your accounts and complete your tax returns. Before choosing an accountant, ask them how they will endeavour to save your business money and ask for evidence of doing so in the past.

Choose Barron & Co. as your trusted accountant

There are many different accounting companies that can support you through the setting up of a new business, offering a range of services. However, choosing a team of Chartered Accountants and Tax Advisors ensures the highest quality of expertise.

At Barron & Co. our team of chartered and experienced accountants have experience in working with large companies, small businesses, partnerships and sole traders based in Birmingham. We aim to make business accounting more straightforward and as a result, significantly boost your bottom line.

With years of experience in limited company formation, offering chartered tax advice and providing bookkeeping and payroll services, you can trust that our friendly and professional team will focus on the time-consuming accounting work, whilst you focus on what you do best. Book a consultation by contacting us today, or browse our range of services on our website.

The Benefits of Hiring an Accountant for Your Small Business

Thursday, August 30th, 2018

Accountancy services are available in many forms and can be tailored to the needs of any business, whether big or small. We often find that smaller businesses who don’t possess the required in house expertise to oversee their own accounting processes stand to benefit the most from an accountant.

As specialists in small business accounting, we can provide you and your business with the guidance and expertise that you need to succeed and continue to see growth. Here are several ways that we can help you by the provision of a variety of accounting services.

  1. Tax Advice

Taxation is often the single largest hurdle for many small companies, whether the application of VAT or end of year tax returns. HMRC provides a significant amount of guidance on these topics but we find that delving into the detail and ensuring that you obtain the information that is applicable to you can be daunting.

Our core service offering includes tax services which are designed to explain to you exactly how you are able to fulfil your tax obligations as a business in the most beneficial way to you.

  1. Tax Preparation Services

As an experienced tax accountant, we can take ownership and responsibility for compiling all of the necessary paperwork throughout the financial year, in preparation for submitting your end of year tax return.

This includes small business bookkeeping where we will assist you in gathering receipts and invoices so that they are present when we require them. Once your tax return is due, we will then compile and submit it on your behalf, leaving you in full compliance of your tax responsibilities as a company.

  1. Driving Business Efficiency

Our small business accounting services are designed to streamline your company, identifying processes which are unnecessary or obsolete with the goal of lowering your overheads and expenses.

We find that there are usually considerable savings to be made simply by tweaking existing systems and making the operation of your company more efficient. This includes reducing unnecessary expenditure and ensuring that outstanding invoices are paid to you on time.

  1. Managing Complex Accounting Tasks

Depending on the nature of your business, you may find that you are often involved in transactions or need to oversee accounting processes that require specialist knowledge. And if you do not possess the required knowledge, completing these tasks can often be time consuming.

As a business accountant, we can assist you with making and receiving large payments, managing recurring payment schedules, operating your payroll systems and ensuring that your financial affairs are always up to date and accurate.

  1. Small Business Advice

Having worked with a vast number of businesses, we can provide you with a range of general advice and guidance. Whether you’re considering an acquisition of a new company or wish to expand organically, we can provide you with guidance on the best way to achieve your aims.

Barron & Co Ltd: Your Local Chartered Accountants

We possess extensive experience in providing bookkeeping services for small businesses in addition to a range of related accountancy services and can adapt to the needs of your business.

Hire us as your accountants in Birmingham by calling us today on 0121 426 4155 or by visiting us at our office which is located at Abacus Court, Bull Street, Harborne, B17 0HH.

An Overview of Forming a Limited Company

Tuesday, August 28th, 2018

There are several vehicles through which you can legally perform services on behalf of third parties in exchange for remuneration. The most common of these is the Pay As You Earn (PAYE) system where you are directly employed by a company who handles your tax and national insurance liabilities on your behalf.

But what if you’re self-employed? If you’re in this position, you have several options available to you including the formation of a limited company, allowing you to operate as a legal entity and exchange services for payment.

As a chartered accountant, we can advise you on setting up such a company to provide you with the most efficient way of providing your services to your customers.

What is a Limited Company?

A limited company is best described as an entity which acts as an umbrella for the conducting of business transactions. Whether you’re an individual and don’t plan to hire any employees or already manage a team of staff, the formation of a limited company can be used to cover your activities.

Unlike carrying out these activities as a sole trader, you are seen as an employee of your company and therefore benefit from the separation of your personal assets and liabilities from those of the company.

How Do I Set Up a Limited Company?

The process is straightforward but there are several important details which need to be collated. As your accountant, we will handle this process on your behalf to ensure that your company is registered properly and you can begin trading immediately.

Small Business Accounting

You will be required to submit details of your earnings, typically on an annual basis as you are subject to both corporation tax in addition to tax on your personal salary and any dividend you pay yourself.

As your bookkeeping tax account, we will assist you in ensuring that all necessary financial information is present such as invoices, receipts and details of your expenses. Our tax preparation services will then see us collate these documents to assess how much tax you are due to pay.

Once your tax submission is required by HMRC, we will then submit it on your behalf and manage any further liaison required with the tax authorities.

The Benefits of Operating Under a Limited Company

For many self-employed people, this method of working is usually most beneficial for several reasons;

  • Your tax liability can often be reduced compared to other methods of working, saving you money and allowing you to keep more of your earnings.
  • You gain increased commercial credibility through the formation of a limited company.
  • You are personally protected in the event that your business fails, with any liabilities remaining those of the company.

Barron & Co Ltd: Providing a Variety of Small Business Accounting Services

As an experienced business accountant, we have the ability to provide you with a wealth of expertise in all matters pertaining to the operation of your business. Whether you’re looking for a new tax accountant or require professional tax services, we can provide the guidance you require.

Call us today on 0121 426 4155 to discuss your requirements with a member of our team or visit us at our premises which are located at Abacus Court, Bull Street, Harborne, B17 0HH to hire us as your accountants in Birmingham.

How Your Small Business Can Benefit from Hiring an Accountant

Sunday, August 26th, 2018

It’s tempting to try and do it all when you start a business, but perhaps you don’t realise all the benefits that hiring an accountant could do for your business. There are some aspects of accounting that people simply aren’t aware of, but when you speak to a company such as Barron & Co about small business accounting services, you may discover that it makes perfect business sense to bring us into the fold.

So, here’s some ways we can help that you may not have considered:

  1. We can help you grow

As accountants who deal with businesses every day, our experience informs our decisions and we’ve seen what works and what doesn’t work. Our financial expertise and our lengthy experience come together and we can look at your business and help you make the right decisions to make your company progress. We can also advise on where you could cut costs, in order to spend more wisely elsewhere. Sometimes it’s about investing, sometimes it’s about connecting, but we’re confident that with our advice, your small business can prosper and grow.

  1. We can help you develop partnerships 

You may think all we are good for is bookkeeping and tax preparation services (and we are great at those!) but also consider how many people we do this for. We are connected to different industries and players through our client list, so this creates great opportunities to network. Get to know us and whom we work with, and see how you can build partnerships, through your accountant. It’s not just the people we know that can help you either, we can help you decide who the right people to work with are, by performing financial analysis.

  1. A chartered accountant can perform competitor analysis

It’s important to know where you stand with the competition. It helps you see what you can do more of, what you can do less of, and maybe when it’s time to try something new. Your local accountants are experts on competitor analysis, which requires time, effort, a considerable amount of knowledge on the market and finance, as well as technical ability. It’s very possible that in running your business, you have neither the time nor the inclination to perform competitor analysis, but we can harvest the right data for you and help you with making crucial decisions based on your place in the market.

  1. We can keep you on track

When running a business, sometimes you can lose sight of things or let certain things slide. If you’re very entrepreneurial new ideas can distract you. You may have hired us as your tax accountants but we make it our business to keep you on track, so that mistakes don’t cost you your business or affect your finances. We know what needs to be done to maintain profitability and it’s in our interest to help you. 

Small Business Accounting Services in Birmingham

If these surprising benefits have made you consider calling on an accountant to help you’re your small business, then pick up the phone and give Barron & Co a call on 0121 426 4155 or complete the form on our website and we’ll be happy to contact you!

Information You Need When Registering for Self Assessment

Friday, August 24th, 2018

The system used by the HM Revenue and Customs (HMRC) to collect income tax is referred to as self assessment. Today, most citizens register for self assessment online. It can be confusing for some, especially if you are new to this, so Barron & Co Solicitors have drawn up an easy guide.

When registering online, you can either choose to register for GOV.UK Verify service or register through the Government Gateway ID. There is also an option for paper self-assessment, whereby you register by phone or mail. All you need to do is download and fill a form and send it to HMRC. Once you are successfully registered, you’ll receive your 10-digit Unique Tax Reference (UTR) number, which you’ll need for all your future tax returns. Here we shall have a look at the basic information you need in order to register for self assessment.

Where to start

To begin with, start working on bank statement and do a few calculations taking into account the following elements:

1] Employment income: You need a P60 ‘End of Year Certificate’ in case you have more than one job or have other sources of income

2] Self-employment income: Add up all your invoices and every business expense

3] Rental income: The total amount you paid as rent in that financial year

4] Interest: Analyse your bank statements carefully to calculate the total amount paid as interests, including loans, credit cards, as well as the amount accrued as interest

5] Dividends: Refer to your dividend voucher numbers to calculate this if you run a limited company

6] Foreign income: Include the total amount you received from overseas

7] Partnership income: This refers to any income that is received as a result of a partnership undertaking. In such a scenario, each partner is expected to submit his or her own self-assessment.

8] Capital Gains: Mention the amount earned through selling or trading in rental property and shares respectively.

9] Unemployment benefit: This section is for the unemployment benefits received and also includes the P45.

10] Employee benefits: The P11D form is meant to declare the employee benefits received in the form of job perks and so the total amount needs to be calculated.

11] State Benefits: This applies if you receive a pension or any other state benefit and you need to calculate the tax on the same.

12] Charitable Giving: Mention the total amount paid as charitable donations in that year.

Chartered and Tax Accountants in Birmingham

If you are a resident of Birmingham and need help with your tax returns or any other accounting services, simply get in touch with Barron & Co Ltd. We are a Chartered Accountants firm that offers tax accounting, bookkeeping services, small business accounting, and other accounting services. Just give us a call on 01214264155.