Making of Annual Company accounts are indeed a time consuming process in your business for which you need to do a lot of paper work. Our experienced and skilled accountants can lower your burden. We can help steer you through the maze and make sure your overall tax burden is as low as possible, taking account of your working capital requirements, your personal financial needs and your planned exit strategy.
There are lots of things you should and should not do if you want to keep your corporation tax bill as low as possible. You should also watch the interaction with income tax and capital gains tax. At Acumen, we can help steer you through the maze and make sure your overall tax burden is as low as possible, taking account of your working capital requirements, your personal financial needs and your planned exit strategy. Please give us a call if you would like us to review your corporation tax position.
At their simplest, management accounts may consist of no more than a statement of sales income, an analysis of expenses and a breakdown of trade debtors, plus maybe a calculation of how much tax the business owes. Indeed, for many proprietors this is all the information they really need. However, most businesses will require more complex accounts than this, including a detailed P&L, a balance sheet, a cash flow statement and a full analysis of fixed assets, stock, debtors and creditors. It is also likely that management accounts will need to be produced monthly or at least quarterly if they are going to be of any use at all in running the business.
Apart from running the business, there are other good reasons for preparing regular management accounts. Your bank will probably want to know how the business is getting on if you have an overdraft, loan or merchant account. They can even be used to negotiate better credit terms with your bank or suppliers, assuming that they paint a good picture of course. They are also useful for declaring dividends. Unless your accounts for the previous year show a sufficient level of retained profits, it will be necessary to prove that dividends come out of distributable reserves
We can help you produce management accounts that are just right for your business, neither too simple nor too elaborate. We can give you an idea of the kind of information that might prove useful to your business, such as a project cost analysis so you can see how much profit each product or project is contributing to your bottom line, or a time spent analysis so you can see how many staff hours your clients take up compared to the fees they pay you. Please give us a call if you would like any help with your internal reporting.
A company is liable for submitting their true and accurate accounts to the companies’ house, in which all the accounting activities conducted by the company should be included such as;
Exclusive Accountants can certainly meet your yearly accounting and tax related requirements and can assure on-time submission.
As with individuals calculating capital gains, all acquisition and disposal costs such as legal fees should be brought into account when calculating chargeable gains and losses. These types of cost are not deductible as trading expenses and tax relief on them can only be obtained when the asset is sold (or otherwise disposed of). They may be different from the costs you are allowed to capitalise such as delivery charges and may well have already been expensed in the accounts for previous years.
Finally, it should be noted that capital losses can only be relieved against chargeable gains, either in the same accounting period or those arising in the previous or subsequent accounting periods. They can never be relieved against the trading profits of the company. This is another difference with capital gains tax as individuals are able to make negligible value claims against income tax for assets that have become practically worthless
Corporate taxation is another issue that a business man has to deal with. It is a tax that has to be paid on all your taxable profits. Exclusive Accountants can look after all your tax affairs and ensure you to calculate your corporation tax and submit it to HMRC.