Following on from my last discussion - are you the sort of person who opens letters from HMRC with relish and action them promptly?  Or, do you put them on the side ready to action later (much later).  Ok, so I admit it even I sometimes do the latter.

DON’T! - These letters are important, that’s why you always feel nervous opening them probably, if you have any doubts, send them to your accountant to action on your behalf.  If the communications mention anything about payments / penalties / overdue amounts, then make sure you DO NOT IGNORE them.  It could be the difference between sorting things out in a timely manner and having to pay up to £1600 penalties.  Yes, I sadly have a client who ignored all of those green letters and has ended up with all sorts of late payment penalties, this is so unnecessary and could have meant a nice family holiday for her and her family this year instead of a cheque being sent to HMRC.

I was recently talking to a self-employed trader and he told me a shocking fact “…I’m always late filing my self-assessment, so any tax rebate I’m due I end up paying in penalties…”

So for the sake of keeping a few records and keeping his books up to date (and putting reminders in his calendar) he was losing out on hundreds of pounds!  I got to wondering how many other traders were operating like this and how many of them end up getting themselves in a pickle and have to call in an expert.  Well that’s where I come in ;-)

Then an interesting article landed in my in-box this week prompting me to think even further, HMRC are taking money for old rope,  let’s not let them take any more in penalties than they deserve, let’s keep those books up to date and file everything on time.  Let me help if you find you don’t have the time to do this, or to go to the full article click below.

http://www.taxinsider.co.uk/1441-Enquiries_Dont_Give_HMRC_An_Opportunity_To_Raise_Extra_Tax.html?inf_contact_key=4e85f3524c715458b47253f3f4456a1b00f4819344a885c66c93b4754893920c

Source:  www.taxinsider.co.uk

As a small business owner I also know how difficult it can be to manage your business 'long distance' and keep up to date with things while you take that well-earned break.


Don't forget to send your bank manager a post card...and a few other tips to keep the bank happy whilst you're away! 

So you are off for a well-earned rest and relaxation on a sunny beach (sounds nice), however your business still requires attention while you are away. Here are some things to consider before you order that holiday cocktail…
 
Plan ahead - make a note of all bills that are due while you are away, make future dated payments through the bank or make use of standing orders to ensure you do not miss any important bill payments (and thereby incurring penalty payments).
 
If you have amounts owing from your customers while you are away, make sure you send out statements and agree payment dates in advance of your holiday period.  Remember that your customers may also be on holiday and there may be delays in paying invoices. You don’t want to be facing a cash shortfall for the sake of a few phone calls.
 
Make full use of mobile banking apps or on-line banking.  Being in another country doesn’t mean you cannot still access your bank.   Set up text banking alerts and make sure you can log into banking apps to keep track of your cash balances. (Check on data charges before you leave)
 
Having a cloud accounting system means you can log in anywhere anytime, perhaps this is something to consider to keep track of your transactions. To find out more about cloud accounting click here http://www.cmw-bas.co.uk/blog/keeping-records-on-apps-and-the-cloud-2
 
Do you really trust your staff?  While you are away, it is essential to have the employees in place that you can trust to keep your business running as you would wish, therefore you need to be able to completely trust your staff to keep records, access your bank account and talk to your customers in the same way that you would. 
 

This was an extract from the August edition of the YBC newsletter - click below for other tips on delegation, managing staff absence, keeping on top of monies owed and planning for your quiet times...

http://eepurl.com/bvUYX5

Managing cash flow is a challenge that can make or break a small business. 

It is surprising how many small businesses don't keep track of incoming and outgoing payments despite how obvious this should be.

Do you really want to wake up one morning to a big bill you have forgotten about? Or find you haven’t got enough money in the bank to pay your employees? 

There is a saying that Profit is Vanity and Cash is Sanity. With this in mind, it is vitally important to keep up to date records of all incoming cash and outgoing expenses and then manage the peaks and troughs. 

Never mix up personal and business expenses. It's so easy to lose track of what is what, so always keep a business credit or debit card. Then your business expenses will always be separate from your personal expenditure. 

A good quality bookkeeper will keep you on track and advise on how best to forecast cash flow. It always pays to leave this bit to the experts. - so please get in touch 

This was an extract from the latest YBC newsletter - July Edition - click below for more great tips on Cash flow management, employee engagement, and how to write a winning press release

http://eepurl.com/buJ25n

Here is an extract from the latest YBC newsletter for June 2015 - in this edition we talk about essential tips for new start up and small businesses

Why record keeping is essential
It is vitally important to keep accurate records for your business (whether sole trader or limited company), the penalties for failing to do so can be very strict – including a jail sentence!
 
It is so much easier if you start keeping records from the very beginning of your self-employment or start of business and keep the habit going…keep all receipts for purchases and records of sales to customers using a method that suits you (can be electronically or paper receipts but it must be done). HMRC will accept small mistakes if you can prove you have tried to keep full and accurate records, but there is no excuse at all for failing to keep reasonable records.
 
As with everything, there are many ways to records the necessary transactions for your trading activities and it pays to take advice on what will suit you and your business.


Click here to read the full YBC newsletter with great articles on Market research, legal obligations and credit management

http://eepurl.com/bq1HkL

Please contact me to discuss how I can help you keep on top of record keeping in your business
Catherine

Packed full of tips for small businesses - please contact info@yorksbizcollective.com to subscribe to this useful newsletter.

Here is an link http://eepurl.com/bl8r-P