For those who operate businesses, whether small, medium or large ones, the process of preparing balance sheets, auditing requirements, and loads of tax forms is a tough one, especially if they don’t have time to do all this or if they lack the knowledge to complete the procedures. Getting help from a number of professional taxation and accounting-related consultancy experts will do a lot in helping business owners and corporations maximize their time and ensure that their financial resources are well-audited and in proper order. For instance, the services offered by independent accountants considerably differ in a lot of aspects, especially if you get these from an accountant on your payroll. The following paragraphs will give an overview of the wide array of services that professional taxation and accountancy consultants render.
The process of bookkeeping refers to the recording of businesses’ daily trading transactions. All pertinent data such as purchase receipts, expense invoices, sales invoices, credit notes received and issued, delivery charges and delivery notes, cash sales, cash received from debtors and others are entered into an official accounting record, which many call the accounting “books”. These days, most accounting books come in software form, with the records entered using the fundamental double entry system and other accounting rules, on the computer. Your accountancy consultant may provide your firm with the required accounting software, and provide the training as well for properly implementing an automated accounting system in your small business or large firm. The use of modern accounting software constitutes a more personal accounting and banking, as well as providing key decision makers and managers a more hands-on approach to their work.
Professional Tax Advice: Most people instantly think about “income tax” when someone talks about giving professional tax advice. Well, an income tax is only one of the many forms of taxation that are imposed by the central government to spend for social programs and other services. In the United Kingdom for example, a large segment of the income tax and capital gains taxes are both managed by Her Majesty’s Revenue & Customs Department (HMRC). An income tax serves as the main source of income for the government. This form of taxation is based on the earned and unearned income of a business entity or individual employee. For this tax, there are a series of payment scales mandated by the government yearly as part of its budget process, and each person who has an income is liable for paying these, provided that their income is above the threshold. Taxation and accounting consultancy services help your firm to thresh out the details, fill the right forms, know the appropriate tax laws, and steer clear of any penalties.
Corporation taxes on the other hand, are payable annually and this are important tax payments that companies should not miss. This type of tax is levied on a limited company’s taxable income or profits. This type of tax however is not applicable for self-employed individuals, but only applies to limited companies, organizations as well as Members’ clubs, societies and associations. The value added tax (VAT) on the other hand, may be quite stressful to handle, especially when the deadlines arrive. According to tax experts, the VAT is one of the most complicated taxes that are levied on businesses, since failing to complete such returns on time would result in incurring applicable penalties and interest. An Accountancy and Taxation consultant will offer to help your firm keep up with the latest HMRC regulations, as well as offer complete advice on the tricky aspects of VAT such as the Flat Rate Scheme, VAT registration, Vat planning and administration, compulsory registration timing, the benefits and drawbacks of voluntary registration, VAT on imports and exports, as well as Customs and Excise VAT.