This document provides 10 tips for UK business owners to effectively manage their accounting and tax obligations. It advises establishing a record keeping system, monitoring cash flow, complying with HMRC legislation including VAT registration, setting KPIs, understanding customers, getting organized, using the right accounting software, considering add-on services, and managing revenues, expenses, taxes, and who owes money. Choosing accounting software with features like mobile access, multi-user access, cloud-based storage, and automation can help save time.

1. UK Tax Tips to Run Your Business
Accounting on Your Own
As your firms’ revenues grow, it is good to effectively record and monitor your expenses and
accounts. This will enable you to make good management decisions based on reliable, timely data. It
will equally ensure you avoid any late payment fines resulting from irregular records. Unfortunately,
the time-consuming and tedious admin of bookkeeping, tax, and accounting that comes with running
a business is unavoidable.
This can be equally aggravating for new entrepreneurs. Whatever you choose to do, you should make
a choice as soon as possible and stick to it. In this article, we will look at ten tips for running your
own accounting.

2. Table of Contents [hide]
 1 Get the basics of accounting right
 2 Worry about your cash flow
 3 Comply with HMRC legislation
 4 Registering for VAT number with HMRC
 5 Set key performance indicators (KPIs) and stick to them
 6 Understand your customer base
 7 Get organised & stay organised
 8 Get right accounting software
 9 Think of Add-on Services
 10 Conclusion
 11 FAQs:
o 11.1 What is the VAT Flat Rate?
o 11.2 When to use VAT Cash Accounting?
o 11.3 How can I save time with Automation?
Getthebasicsofaccountingright

3. 
Even if you do not have an accounting background, it is essential to have a solid understanding of
your finances. It is important to keep records from the start, and making this process straightforward
could save you time and boost efficiency. You should set up a verifiable record-keeping system and
register your firm with HMRC before or after you open a bank account. This will ensure that your
revenue and VAT are operated digitally.

4. Worryaboutyourcashflow
Cash flow is the lifeblood of a company as it ensures you can pay your financial obligations on time
and prevent any late fines. It is important to have a regular source of income while managing your
expenses in a manner that supports your regular payments, not least VAT. Maintain a close eye on
your cash flow and keep note of your credits and debts. Always plan for how much money you will
be making and how much you will be spending in order to ensure that your financial affairs are in
order at all times.
Complywith HMRClegislation
Complying with complex tax legislation is not easy. However, you must have a solid understanding
of your responsibilities with HMRC and you must design a system that works effectively to ensure
that you pay your taxes on time and get your returns in line with the legislation. Register for a VAT
number if your VAT exceeds the £85,000 threshold and stays up to date with the relevant business
legislation in the budget.
RegisteringforVATnumber with
HMRC
Do not wait too long to register for your VAT number, as this will prevent you from paying late
fines. You can apply for a VAT number to ensure you pay your taxes on time and get your tax
returns as needed. Even if you are unsure whether you may breach the threshold, it’s better to register
for a VAT number.
Setkeyperformanceindicators
(KPIs)andsticktothem
Set KPIs to determine whether you are making any operational or efficiency gains. This will enable
you to better understand your expenditures and whether you are paying the right amount of taxes. It
is important to set clear goals that are Specific, Measurable, Achievable, Realistic, and Time-bound.

5. Understandyourcustomerbase
Knowing our consumers inside out is important. It should be an integral part of any business or
entrepreneur. Your business wouldn’t exist without your customers, which is why you should make
an effort to get to know them and how they consume. This will improve your record-keeping over
time and enable you to adjust faster to changes.
Getorganized&stayorganized
Businesses with solid accounting records can perform better over time by deciding what to spend and
how to spend their revenues. Being effective can equally enable you to pay taxes more effectively. It
might allow you to quickly identify opportunities to generate returns. Being organized could save
you money and prevent additional accounting fees, possibly bank fines for late payments, or
unexpected tax payments later on.
Getrightaccountingsoftware

6. 
It is important to get the right accounting software, which comes with a variety of tools and features
to assist you in keeping track of your accounts. Accounting software that is simple to use and has

7. time-saving features might assist you in meeting your business objectives and ensuring that you
record transactions properly.
Choosing the correct accounting software is critical for small business owners. This can be
accomplished by taking into account usability criteria such as the following:
 Access for multiple users: Look for accounting software that allows you to invite your team
or other users, providing them access to data and allowing them to perform certain duties
remotely. There is useful software that allows you to share and work with employees from
different locations.
 Multi-Business Assistance: You may require accounting software that can give you extensive
support and eliminate the need to set up accounts or get add-on services at higher costs.
 Cloud-Based Software: Cloud-based software is used by the majority of top accounting
systems for all types of enterprises. As a result, you will be able to manage your account
from any internet-connected computer from any location. This is ideal for SMEs operating
from many locations.
 Mobile Access: Some accounting software equally has mobile apps that allow you to monitor
and complete basic duties. It is useful to have accounting software that is accessible on your
mobile.
Think ofAdd-onServices
Tax Preparation: Accounting software is useful as it assists you in managing your revenues and
expenses as well as benefiting from features such as automatic tax computations.
Add-on Services: You might want to consider adding some other services, such as payroll and
payment processing. Doing this will make it easier to collect payments and pay staff.
Conclusion
Cash flow management, VAT, understanding what products and services generate the best returns,
and management of who owes you money may seem like common sense. Even so, many businesses
overlook them. This article provides a checklist of tips to help manger your accounts.
FAQs:

8.  What is the VAT Flat Rate?
VAT is still charged at 20%, but it is paid to HMRC at a reduced rate (depending on your profession
or trade), leaving a discrepancy that the business can profit from. See more information from
the HMRC website.
 When to use VAT Cash Accounting?
This option is open to any company with an annual turnover of less than the current limit of £85,000.
It is different from the regular plan in that VAT is not calculated until an invoice is paid.
 How can I save time with Automation?
It’s best to use accounting software that can deliver past-due notices and invoices to your clients
automatically. This will improve efficiency on invoicing and accounts receivable, which will equally
save you time.