Frequently asked questions

What do I need to do to start a business?

• There are many legal requirements in starting up a business.  We offer a free one hour consultation in order to show you exactly what is required of you, as well as looking at business plans, forecasts and putting systems in place.

What is your “Part time Financial Controller/ Financial Director service?

• Many businesses require the knowledge and experience of a Financial Controller or Financial Director.  Our service ensures they get the benefit without paying out a large salary.  We come into your place of business however regularly you feel is needed, and give the benefit of having an FD/FC on board.  Offering advice, regular accounting, forward planning, and many other services, in order to allow your business to flourish.

Why do I need to forecast?

• Many banks will want to see one, especially if you need credit facilities.
• Gives your business a path to follow.
• Greater control of finances
• Increased awareness of available resources
• Quicker reaction to changes
• Calculates profitability of potential new products/ projects

 Why do I need to change my forecast regularly?

• Circumstances change and you need to ensure that you plan for those changes
• Keeps a more realistic plan in place.
• Aids decision making.

 What Forecasts should I do?

• A cashflow forecast
• A profit and loss forecast

 Why is monitoring your cashflow so important?

• A business can make a profit but still go into liquidation.  In business CASH IS KING!!  You can appear to be making a profit; however that does not reflect on your cash situation.

Why do regular management accounts (A Balance sheet and a Profit and Loss Account)?

• Completing regular management accounts will give your business:
  • Complete transparency of where the company stands
  • Tighter control of finances and cashflow
  • Accurate recording of business transactions
  • Better credit control
  • Aids decision making
  • Easier access to financial information
  • Allows measurement of company information
  • Leads to increased efficiency

Why be a Limited Company?

• There are often tax advantages, such as how you pay directors.
• You have some protection if the company goes into liquidation, whereas you could lose personal assets if you are a sole trader or a partnership.

 When do you need to file a set of statutory accounts at Companies House?

• 9 Months after the year end otherwise you will get fined

Company House Penalties:

Length of delay                          Penalty: Private Company            Penalty: Public Company

Not more than 1 month               £150                                          £750

Between 1 and 3 months             £375                                          £1,500

Between 3 and 6 months             £750                                          £3,000

More than 6 Months                    £1,500                                       £7,500

 

When do I need to file a corporation tax return (CT600)?

• 9 months and one day after the year end

 

Should I register for VAT?

• Depends who you are supplying to and what the level of your turnover. However:
  • You have to register for VAT if your turnover exceeds £68,000 a year
  • If you supply business to business, it may be beneficial to register earlier than need be

 Should I pay my earnings as a dividend or salary?

• The correct mix is necessary to be tax efficient and save money on National Insurance. Our payroll services will ensure that you get this right mix.

 Do I have to get my accounts audited?

• Generally no if for financial years ending before 5 April 2008 you have:
  • Turnover of no more than £5.6 million
  • Have a balance sheet total of no more than £2.8 million

OR

• For financial years starting on or after 6 April 2008, you have:
  • Turnover of no more than £6.5 million
  • Have a balance sheet total of no more than £3.26 million

If you have a profitable business how can we help you?

• Even though your business is profitable, you still may find you have products/services that are not. You may be unaware of these until you have the right management information. We can aid with this and help you build a stronger business

Which areas do you cover?

• We cover anywhere in the West Midlands including Dudley, West Bromwich, Walsall, Wolverhampton and Birmingham, Shropshire, North Worcestershire and the South part of Staffordshire including Stafford / Cannock. For bigger assignments, we are willing to travel into Warwickshire and Gloucestershire.

What Kind of businesses do you work for?

• Sole traders, partnerships and Limited Companies with an annual turnover of under £6 Million.
• In our opinion, if your annual turnover is higher than £6 million you could do with an “in house” accountant to handle your business’s affairs. One of our business strategies is to help companies who do not need a Financial Controller or Finance Director full time. We aim to add value and save them money.
• If your key finance person is off sick or on leave and your turnover is higher, we are happy to come and help out on a part time basis.
• If you are a start up business, we have a vast knowledge of forecasting and setting up business plans. We can help you to ensure that you have ownership over these and use them to benefit your business’s future development. We also aim to ensure that you comply with regulations set by HMRC and Companies House, so that you do not have any complications. This is why you need us when you first start up, we offer a free hours consultation, where we will advise you.