Time to go back to the quilt

Money makes the world go round and tax is part of this mechanism. As a businessman or woman, it also makes you a part of it, like it or not.

So how do you make sure you pay the right tax. Too little gets you in hot water; too much is, well, too much.

Get a good accountant. Far more than the number of crunchers of good accountants, how taxes work, what is allowed and what is not. It is their area of ​​expertise to explain that everything to you in a language you understand, which frees up more time for you to take action. (You don’t make your own books, do you? Whatever? OK, it might cost less, but how much value do you put into your time? Factor in there and DIY bookkeeping starts to look expensive. Especially if you’re doing mistakes.)

Data, data, data. No matter how good your accountant is, he cannot do a proper job if your record keeping is sloppy. This is where expense management software comes in and puts it in hand and a means of accurate record keeping that will ensure all your numbers are there and will stand up to scrutiny. These days, online expense management software is the way to go; available anywhere you have a WiFi signal means there can never be an excuse for not registering an expense. You will be glad you came to the end.

Don’t be late. Even if your tax records are accurate to the ear, you will still pay a fine if you are late with the payment. Frankly, there is no excuse. Take for example. The British tax system. Personal tax is based on a financial year ending in early April, and yet the payment deadline is the end of January of the following year. How long do you need? Rising numbers of people complete the tax return online Christmas Day. Some of them really don’t like their families, wouldn’t you say?

Talk to the accountant. Understand how to best gather the data you collect. Making the accountant’s job easier means that your accounts can be sorted faster and possibly cheaper. If you do not have this conversation, it may mean that you are recording expenses incorrectly, which is a waste of your time and his.

Get everyone on board. Expenditure is a team game and not a solo sport. Any company employee who has the authority to spend money must also be responsible for accurately recording them, and it is your job as a business owner to see that they do. This is another area where a good piece of expense management software scores for you, as well as registering numbers, it will also define spending policies. In addition, you can expect it to work on a smartphone, so there can be no excuse for not having all the exact numbers to hand on a thumb.

More than just numbers. And when we talk about policies, online expense management software provides other benefits, e.g. Elimination of fraud. Take mileage requirements as an example. Using a paper-based system, an employee can pump the actual mileage on a journey by a few miles, increasing the expense claim and cost of your business as a result. One feature of good online expense management software is that it can use GPS to detect the distances traveled and remove temptation from the employee’s path and make the transaction fair to all concerned.

Keep money separate. Business and personal money should be like oil and water – they should not be mixed. Unfortunately, there are circumstances where oil and water mix and it is a devil of a job to separate them. The same goes for personal and corporate money, so in all cases it is better that they do not interfere in the first place. In terms of money, spending management software gives you an advantage there because it can be linked to a specific credit card – and a company one – which means there will always be a clear distinction between what is business and what is not.