financeequation - Tumblr blog

[financeequation]

Benefits of Online Accountant Services

Nowadays, Online Accountant Services have grown its popularity. In this techno era, nobody wants to waste their time on the web-based solution. Whether you have a big or small business but your accountant can help you to take your business to the next level. Our expert e-commerce accountants in London have revealed some facts related to Online Accountant Services.

Have a look:

Expert advice

For a busy business, an online accountant is a perfect choice. You can easily connect with them and they will offer you multiple levels of support. A professional will offer you quick customer response services through the mail and over the phone.

Online accountants are qualified people that will provide you with accurate and up-to-date tax advice that suits your goals. One more benefit is that they are available around the clock to chat with you about business finances. So, this can be much more cost-effective in comparison to a physical meeting.

They have years of experience and are on hand to answer any queries that may arise.

Enhanced productivity with accuracy

Accounting is very time-consuming work. Maybe you have to spend hours making a document. When you choose online accounting software, it makes your work easy to upload, save, and collate business and financial information. It will help you to save valuable time and money and also ensure error-free work. Experts will offer you a snapshot of real-time data. Also, give you advice on how to improve your revenue and financial management.

Automation in the workload

You will notice a drastic improvement while using online bookkeeping services. It helps to automate your workload rather than use a manual data feed.

It will provide you with real-time financial snapshots and also automate bank transaction records directly into your accounts. It will also produce invoices and payment reminders and give the ability to upload paper-based business expenses and invoices.

Cost Effective

Using an online accountant is a cost-effective option for many businesses and many online accountants. Unlike traditional accountants, when you go for an online account, you will notice that the accountancy work becomes easy after using the software. It can then pass the savings made by the increased efficiency onto you. As a result, you will see lower accountancy fees.

Final Thought

Previously the companies use spreadsheets and keeping track of mountains of paperwork. Today we are here for you to offer you Online Accountant Services Essex, we have a specialised team in understanding the needs of contractors and freelancers. We help companies to manage their account simply with accountancy software. Our Account Manager will be there to chat with you round the clock which allows you to manage your limited company effectively. Don't waste your time connect with us for more details.

[financeequation]

Benefits of online bookkeeping services

Have you just ignored the bookkeeping services when you started your business, if yes! So now is the right to maintain it. Your advisors and associates may have urged bookkeeping since you established your business and received your first paycheck. The online accountant services assist you in keeping track of your company's money and books.

It's important to remember that it is not just for recording payables and receivables. We have already discussed the advantages of using an online accountant.

Let’s read keenly;

Basics about online accounting services:-

To begin, it is critical to understand the distinction between accounting and bookkeeping. Accounting services, whether offline or online, are all about keeping track of finances and maintaining the books of accounts. An accounting service also offers three-tiered ways for developing and maintaining the company's overall financial process.

The first prong is created by an accounting software expert.

First, they construct an accounting data file that is tailored to the company's specific requirements.

After that, professionals double-check that you have access to all of the necessary tools and reports.

Payroll outsourcing services are sometimes used by businesses. They can handle deposits, payroll, the ever-changing world of sales tax, and financial report maintenance and creation. Bookkeepers can also assist with reconciling bank statements with internal accounts.

These specialists will ensure that all activities are finished on schedule and with sufficient accuracy to be useful. You'll need to set up a system of checks and balances in the business with the help of an accounting software expert and a full-service bookkeeper.

The bookkeeper will examine and record the expenditures of each department. Bookkeepers will also examine the accounts, payables, and receivables, as well as the company's spending, to ensure that it is within budget. The snippet can help in the identification of inefficiencies and the creation of more efficient budgets in the future.

Mainly five kinds of accounts are featured in bookkeeping. Equity assets, liabilities, revenue, and expenses are the four categories. The commitments or debts that the corporation owes are referred to as liabilities. The amount of money received by the company is referred to as revenue. Expenses, on the other hand, are funds that the company spends to pay for things like employees and utilities. After liabilities, equity is the leftover value.

The controller is the bookkeeping services' third point of contact. They can improve the company's overall financial accountability by checking balances regularly. A controller examines the bookkeeper's record to ensure that accounting data is accurate and consistent.

What exactly do online accounting and bookkeeping entail?

The majority of people believe that a bookkeeper's job is dealing with taxes. However, you should be aware of the fact that they are not properly certified to do taxes. Furthermore, because they do not file business taxes, they are ineligible for the same.

Instead, bookkeepers are more concerned with keeping correct financial records for the business or clients. The bookkeeper's primary responsibility is to offer information that the decision-making committee can understand. Professional managers keep track of the company's financial activities and record while guaranteeing that the records and accounts are completely accurate.

When you rely on the bookkeeper, you can get an accurate monthly assessment of the company's financial situation. The data is a powerful indicator of the company's financial health.

These are the advantages of using online accounting services. If you are satisfied with these points, our online accountant services in London can help you manage your finances effectively. We have a team of experts to give the best accounting services since we understand how important it is to keep track of your business finances. So choose us as your business partner and don't worry about anything.

[financeequation]

How To pay Taxes As A Freelancer

If you've just left a full-time job and wish to work as a freelancer, you might be wondering how to pay taxes – and which taxes you should pay in the first place. In such cases, you can always take assistance from Online Accountant Services London.

So, in this blog post, you will get to know about your legal duties as a freelancer.

When you start freelancing, one of the first things you must do is register as self-employed, which would allow you to pay your taxes.

The procedure is straightforward: ensure that your work qualifies as self-employment and then register with gov. uk. You are called self-employed if you own your own business, have many clients at the same time, select how and when you work, may recruit personnel, and so on.

Following that, you must complete your registration using the Government Gateway site and enter information about your firm, such as its name, address, and start date. You'll also need a 10-digit Unique Taxpayer Reference, which HMRC will email you so you can set up your account.

In London, every year, you must also file a self-assessment tax return, for this, you can take assistance from the Online Accountant Services. Your returns must be error-free and filed on time, so contact an accountant if you're unclear about what information to include or if you'll be able to deliver it by the deadline.

Knowing when to register as self-employed is equally vital; while you should do it as soon as possible, you also have a deadline to meet. You must register by the 5th of October after the end of the tax year in which you began your firm. This implies that if you began trading in August 2021, you must register by October 5th, 2022.

If you earn money through a company – even if it's a side hustle – or from working, you must pay income tax. When you work for someone else, this is handled by the employer; but, if you are your own boss, you must pay the appropriate amount of tax.

Providing a Self-Assessment

Every tax year, as previously stated, you must complete and submit a self-assessment tax return to HMRC. If you do not submit it by the deadline, you must pay an amount as a penalty. The answer to the question 'how much tax do freelancers pay' is not simple because it varies by individual. However, there are several factors to consider when it comes to paying less tax, such as deducting costs.

When you work for yourself, you can deduct some expenses, such as:

Stationery expanses

Telephone bills

Computers

Rent and utility expenses

Marketing expenses

Courses in your field of expertise

Travel expenses

Material expenses

In case you are busy with your business and do not have enough time to file your tax, please contact Online Accountant Services London and allow them to assist you in submitting your self-assessment on time. They are experienced and trustworthy.

[financeequation]

What Are The Main Requirements For Becoming An Efficient Tax Consultant

A tax advisor is a financial specialist who possesses specific tax accounting, tax law knowledge, and expertise. In difficult financial situations, a tax counsellor is usually hired to lower the amount of tax owed while remaining compliant with the law. Tax attorneys, Certified Public Accountants (CPAs), licenced agents, and some financial advisors are examples of tax consultants. A tax advisor can also be termed a tax consultant.

E-Commerce accountantscan work for an agency or operate for themselves. In both cases, they are tasked with figuring out efficient ways to lawfully reduce customers' tax liabilities, predicting taxes on various investment portfolios, determining the appropriate relevant deductions and credits, and so on. Most of the time they would help their clients to prepare and file tax returns. A taxpayer who has experienced a major life event, such as a spouse's death, marriage, divorce, childbirth or adoption, the purchase of a new home, job loss, inheritance, and so on, should seek the advice of a tax expert.

Certified public accountants and registered agents are the most knowledgeable tax consultants as they have formal education. They even have the related experience also to provide their clients with comprehensive strategic guidance. On the other hand, you may find many tax consultants are registered with the IRS. Thisindicates they don't have a formal education to complement their knowledge when it comes to tax advice.

There are some basic requirements to become an efficient Tax Consultant.

For tax consultants, there is no formal accreditation process. A bachelor's degree in accounting, finance, tax law, or a related field is usually required. Furthermore, IRS law mandates that compensated consultants or advisors who prepare tax returns register as tax return preparers. These tax return preparers must also register with the IRS for a Preparer Tax Identification Number (PTIN).

Completion of the Competency Test for Registered Tax Return Preparers is also required. Some tax return preparers, on the other hand, are not required to take the exam. Exam exemptions apply to CPAs, EAs, attorneys, supervised preparers, and preparers who do not prepare or assist in the preparation of any Form 1040 series returns.

According to the London based IRS, the PTIN number could be current or provisional. Provisional status is granted to tax return preparers who pass the competency test, whereas active status is granted to CPAs, EAs, and attorneys automatically. Paid tax return preparers must also pass a tax compliance and sustainability examination. All preparers who meet these requirements are required by law to register with the IRS.

E-Commerce accountants often have an in-depth understanding of tax laws, allowing them to assist you in lowering your taxes. In contrast to a tax preparer, who works only during the tax season, this type of advisor usually works for you all year. Although you are not obligated to hire a consultant, you should consider whether you would benefit from one.

So, if you have started your online business and want to grow please hire tax consultants who are experienced, knowledgeable and passionate about their work.

[financeequation]

Things You Should Know Before You Hire One eCommerce Accountant

Whatever stage of your eCommerce business you're in, bookkeeping and accounting are two of the most important factors to consider for long-term success. Things might quickly go awry if you don't have a good eCommerce bookkeeping and accounting system in place. Uncertain tax rules and the internet's tremendous growth opportunities are just a few of the reasons why bookkeeping and accounting are critical for eCommerce enterprises. This article explores how to use good bookkeeping and accounting methods to ensure the success of your eCommerce business. By using the procedures mentioned in this article, you may significantly minimise the stress you face as a growing company while also ensuring that you comply with all tax rules.

Difference between eCommerce Bookkeeping and Accounting:

Your financial duties expand in tandem with your eCommerce business. As a result, you have a lot on your plate as a business owner. Sales, returns, supplier payments, banking fees, and every other financial aspect of your business become more complicated as your company grows. So, if you want mental peace and want to focus on the development of your business, please hire eCommerce Accountant Services.

Nowadays, bookkeeping is no longer merely the execution of routine activities. It's a lot more difficult than that as it includes:

Transaction categorization

Generating invoice

Account reconciliation

Maintaining balance sheets

Managing payrolls

Managing account payables and receivables

As an eCommerce company grows, accounting gets more complicated. Due to the internet's new and continuously changing business environment, assessing financial data and projecting for the future is increasingly complex. In cities like London, you can get professional help easily to manage your eCommerce accounting.

The professionals will do the following for you:

Preparing and adjusting entries

Financial information audits

Tax planning and reporting

Financial forecasting and risk analysis

Financial statement preparation

If you are planning to hire eCommerce Accountant Services for your small business, you should know that there are two types of accounting for eCommerce businesses. The first is cash basis accounting, and the second is accrual accounting.

Cash basis Accounting - Cash basis accounting keeps track of transactions as they enter or leave your account as an expense. The transactional information stored across all of your payment methods and accounts is mirrored in your books.

Because of its simplicity, cash basis accounting works well for eCommerce enterprises when they first start. You can examine how much cash you have on hand at any given time by reporting money movements based on your accounts.

You also don't have to pay income taxes on the money you haven't received when you use cash basis accounting. The following firms benefit the most from this bookkeeping method:

Small eCommerce sellers

Maker businesses

Products on-demand businesses

Dropshipping operations

Cash-basis accounting, on the other hand, is not as effective for larger or developing organisations. It may not be suitable for such businesses because it does not account for future receivables or payables.

Accrual System - Accrual accounting keeps track of transactions as they happen, rather than when money enters or exits an account. This is the strategy used by the majority of financial organisations.

At first appearance, accrual accounting can be perplexing. When you account for current and future obligations, accrual accounting provides a more realistic depiction of your monthly business income and enables more accurate financial projections.

The disadvantage of this strategy is that it focuses on how much money you transfer rather than how much money you have. Using accrual accounting to account for future income and expenses runs the risk of making your finances appear more promising than they are, requiring you to keep a closer eye on them.

Any London based eCommerce Accountant would suggest his client use this method as the cash basis accounting is only allowed for businesses with average annual growth receipts of less than $5 million. If you want to grow your firm, the accrual technique is the way to go.

[financeequation]

How To Get The Most Out Of Your Banking Relationship

Small business banking is often just one of hundreds of priorities those managing SMEs must juggle on a daily basis. When there is already an expert team in place at the bank dealing with your financial requirements for you, it can be easily overlooked in favour of business activities that require a more hands-on approach.

Banks deal with SMEs daily, and most have tailored services to fit their needs. Yet the person within a small business interacting with the bank and taking on financial management responsibilities often isn’t a specifically qualified or trained financial specialist – simply because in small companies, job roles span further and wider than traditional corporates due to resource scarcity. That said, of all the areas that a business should look to really hone in and focus on with a well-trained eye, finance is definitely one.

As with all areas of business innovation, banking has seen a variety of new players come to the table when it comes to offering banking services to small businesses, and as a result, the industry is just not growing but also changing fast. Many of the banks currently offering business services are not the traditional high-street names you’ll have already heard of – and with these new entrants come a new way of ‘doing business’ and a new, strategic, relationship-building focus within the sector.

The lack of resources that many SMEs suffer from is commonplace, particularly when starting up. Most do not have the time, money or appetite to hire a whole accounts department, and we at Finance Equation Ltd appreciate that. You can’t do everything! This doesn’t mean, however, that your business needs to open a bank account and leave any further thought on it until the end of the financial year; or, as unfortunately is often the case, until there is a cash-flow or other financial problem. Instead, you can nurture your business relationship with the bank year-round in a strategic and prosperous way by hiring a part-time financial director to manage the relationship for you.

Why You Should Strengthen Your Business’ Relationship With The Bank

A survey by BCSG found that 73% of small business owners have never made contact with their Banking Relationship Manager. With so many business leaders having had no occasion or reason (that they believe) to meet their bank manager, few appreciate the value that a healthy working relationship with them can bring.

Far from being the stereotype of a rich old man in a suit sitting behind a large desk in a lavish office, bank managers are now more involved than ever, working on business development, service innovation and tech solutions. While many in business still view their bank as a vendor – someone there to sell and lend them money and financial support when required – in fact, modern small business banking works much more around partnerships and growth. Banks are in place to make money, of course, but they stand in better stead to do so as their small business investments and customers grow and flourish. The encouragement and nurturing of their journey is as much the growth of the bank’s own business as it is their customers’.

When a business is in regular contact with their bank and their working relationship is healthy, they are more likely to receive favourable credit terms, updated service offerings, any business ideas or development tools that the bank have available and free business advice and information. Working with, rather than just occasionally for, your bank can create a value-adding strategic relationship for both parties. But how to best foster a relationship of this type? Read on!

 Keep Communications Clear, Concise And Open

If no one in your business has ever spoken to someone at your bank, now’s the time to get in touch. Small business banking requires a much greater understanding of a company than the services offered for large corporates, and bank managers always appreciate learning more about their clients. Your bank will likely already know the basics of who you are and how you operate but it is beneficial for them also to understand who your customers are, who your vendors are, and what the latest updates and developments in your industry are.

Bank managers appreciate the proactivity of businesses approaching them to discuss how and where they are as a firm and will value the opportunity to interject and contribute with ideas, advice and services. Despite many businesses considering their bank manager just a knowledge base on finances, their expertise should not be underestimated. They deal with a variety of different businesses every day and have a unique insight into their operations. Banking staff are often able to divulge market intelligence and to give advice on development opportunities – keeping client confidentiality as required, of course. This as a resource is valuable for a business and should be utilised wherever possible.

Stay In Touch

A bank manager doesn’t need to know every time a business sells a product, but regular contact and updates on how an enterprise is performing is beneficial. This better helps them remain abreast of market, industry and company developments.

Scheduling in a regular meeting with your small business banking relationship manager will ensure a sustainable level of communication remains in place and that financial matters remain a priority. Aim for quarterly if possible, and ideally face-to-face.

Communicating honestly with your bank manager is imperative to a conducive working relationship and will help instil a degree of trust between both parties. Anyone working in small business banking would much rather help prevent issues from arising ahead of time than they would have to ‘firefight’ them reactively later. Statistics from the British Business Bank show that while acceptance rates for business finance are improving, businesses that don’t receive additional finance or credit are being turned down due to industry performance, complexity or weak balance sheets. If the bank already knows a business’s circumstances well, their ability to help as and when needed is increased.

Remain Consistent

While those working in business banking appreciate that the nature of enterprise and entrepreneurship is often evolving and changing, it is important to remain consistent on aims and goals. Demonstrating that your business has a strategy and is working towards it coherently and consistently shows credibility and trustworthiness. What’s more, it can give shape to the regular check-in meetings with banking contacts and allow for a clear vision of how both parties can work with each other strategically.

Research shows that 90% of start-ups fail and there are, undoubtedly, numerous reasons for this. Businesses must pivot and move in line with market trends, needs and fluctuations, but they, too, must remain true to themselves and their company values. The goalposts may shift but the goals themselves should not, and ensuring logical focus exhibits dependability and a want to succeed to the bank. Working the balance between consistency and adaptability is no mean feat but very worthwhile!

If your business does need to shift further than perhaps your bank would have expected when they initially offered service terms, or if further (or different) services are required on the basis of the pivot, the honest and open relationship with your bank will help reiterate to them that your firm is trustworthy and reliable when it comes to performance, and, therefore, payback.

In A Small Business With Limited Resources, Who Should Manage A Bank Relationship?

SMEs rarely have the budget to recruit a whole department of staff to manage accounts, and that’s understandable; with so many competing priorities, it can be difficult to justify mass expenditure. Instead, recruitment can be smaller and lower key. A part-time financial director can oversee and operate not just in-house financial requirements but also the burgeoning and strategic relationship with your bank manager.

Finance Equation Ltd can provide a fully qualified and well-experienced part-time financial director for your business. Our pool of FDs work with and for some of the UK’s biggest and best-known companies and can offer their support and expertise whenever you need it. Furthermore, as specialists, they already have good working relationships in place with small business banking teams and can extend this rapport and related networking to include your business.

A part-time financial director removes the need for an expensive full-time hire while still allowing access to unrivalled expertise, knowledge and networking opportunities. Managing a productive business banking relationship is second nature to an experienced FD and will take hours of time away from your business’ existing workforce – instead, allowing the focus to sit on the management and development of the business.

Finance Equation Ltd’s team of FDs have saved businesses from excessive banking fees, negotiated favourable credit extensions and waived fees, created and provided business plans, introduced and managed new banking options, and kept documentation up-to-date and legally compliant. The ability to skilfully communicate with bank managers can reap benefits for SMEs in a way that otherwise takes years to nurture, for a fraction of the cost and the effort.

Hiring a part-time financial director won’t break the bank, but it may just make it. Take the first step and contact Finance Equation to discuss options.