How will you keep track of the money that comes into your business, and settle on time the bills that you need to pay? By law, you must keep good accounts and records and make regular returns to HM Revenue and Customs.
The simplest answer is to ask someone else to do it for you. You can hand your receipts and invoices over to a bookkeeper who will record everything you spend and receive.
Your accountant will use these figures to calculate the tax you must pay and the tax benefits to which you are entitled. They will help you fill in your annual Inland Revenue returns and quarterly VAT returns (if you are registered).
To find a chartered accountant in your area, go to:
- Institute of Chartered Accountants in England and Wales
- Institute of Chartered Accountants of Scotland
- Institute of Chartered Accountants in Ireland
If you feel out of your depth in the unfamiliar territory of spreadsheets and calculations, these professionals will save you time, headaches and money - and most important, they will leave you free to get on with the creative work that you do best.
However, if you feel confident about managing your own accounts, there are many different ways to do this - see How to keep your company accounts.