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    We are open: Monday to Friday from 9am to 7pm and Saturday from 10am to 5pm

    18 - 20 East Street
    Bromley, BR1 1QU

    At Adiva Accountants all initial consultations are free of charge, so contact us today.
    For quality, competitive, and friendly accountancy services, please contact

    Adiva Accountants

    on 020 8313 9117 or via email at contact@adivaaccountants.co.uk.

    At Adiva Accountants we have the knowledge and the experience to provide you with the kind of accounting and tax services that you are looking for. At Adiva Accountants we look forward to discuss with you, without obligation, ways in which we may be able to help your personal or business needs.

    Alternatively, you can complete the contact form here and we will respond as soon as possible.

    Directors of Adiva Accountants have over 10 years’ experience of providing accountancy services. They have completed Bachelor and Masters degrees in Accountancy, Taxation and Business Management. Additionally, they have completed various accountancy qualifications such as ACCA, AAT, etc. So, they hold various accountancy degrees and qualifications up to chartered certified accountant.

    They can advise you on many other things, such as how to get the best price when you come to sell your business. Or on how to satisfy the banks conditions when you need help with finance. Or on how to keep creditors, insurers and suppliers happy, etc. Their expertise covers income tax, capital gains tax, corporation tax, VAT, payroll and many more.

    They can help with dealing with Inland Revenue investigations also.


    Parking

    There are parking bays right in front of the office, please be careful not to park in loading bays. Parking costs £1.90 per hour (maximum stay 2 hours). Alternatively, you can park in Sainsbury’s car park, which is just 1 minute walk away from the office. Parking there is completely free for 30 minutes and would be free for up to 2 hours provided you spend £10 in Sainsbury’s. Our office is at 18-20 East Street, Bromley BR1 1QU, which is opposite of O’Neill’s pub and TruGym.

    Alternatively, there is a big car park (1,500 spaces) in the INTU Bromley Shopping Centre (formerly The Glades). Parking costs £1.10 per hour for every day of the week. The shopping centre car park address is: The Glades, High Street, Bromley, BR1 3EF.


    By car

    If you drive to our office in Bromley, please enter this address in your Satnav 18-20 East Street, Bromley, BR1 1QU. From Orpington, you can take A232, then A21. From Beckenham, you can take A222. From Eltham, you can take A208B226A2212, then A21. From Lewisham and Catford, you can take A21. From Croydon, you can take A232A233, then A21. From Kent, you can take A21. From North and East London, you can take the Blackwell tunnel southbound, A2A2213A20South Circular RoadA2212, then A21. From West London, you can take South Circular Road to Catford, then A21.


    Public transport

    We are situated in Bromley East Street, which is served by Bromley South and Bromley North train stations, they are about 5-10 minute’s walk away oesterreichischeapotheke.com/. There are direct trains from London Victoria, London Bridge and London Blackfriars to Bromley South station. Bromley South is connected by direct trains to major towns around London and in Kent such as St Albans, Orpington, Sevenoaks, Ashford, Gillingham, and Ramsgate.

    The main bus routes serving Bromley High street are 61, 119, 138, 146, 208, 227, 246, 261, 269, 320, 336, 352, 354, 358, and 367.

    Chartered Certified Accountants       Call us: 020 8313 9117 contact@adivaaccountants.co.uk
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    We have the expertise to help you at all stages of the preparation of your year end accounts. If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley, would be happy to assist you. So please do not hesitate to contact us at Adiva Accountants in Bickley for further advice.

    In addition to the above records the following schedules will assist us in completing your end of year accounts. We can prepare these schedules ourselves but if you will prepare them, it would reduce the time we spend preparing your accounts:

    • A list of fixed asset additions with copy purchase invoices provided
    • A stock list at year end. This should be at the lower of cost and net realisable value
    • Details of work in progress at the year end
    • A list of debtors at the year end, their age and an indication of any that unlikely to pay
    • Sales ledger control account reconciliation
    • Reconciliations for all bank and cash accounts
    • A list of trade creditors at the year end and their age
    • Purchase ledger control account reconciliation
    • Details of PAYE owed at the year end
    • Details of VAT owed at the year end
    • Schedules of key and tax sensitive profit and loss accounts such as repairs, sundry expenses, entertainment, etc

     

    Please talk to us about your own circumstances. If needed let’s discuss what you can do to improve your records. Let’s decide together what records to provide to us at the end of your financial year.

    Not all the business will have all of the following records. But if you do, you should provide them to us covering the year (plus one month after that):n• If your records are computerised, we need a back up copy of your accounts software for the year n• Your cash bookn• Sales and purchase day booksn• Any ledgers that you keepn• Bank statements (in PDF or CSV format) n• Purchase invoicesn• Sales invoicesn• Petty cash recordsn• Cheque books and paying in stubsn• Copies of VAT returns covering the year together with any workingsn• Copies of any new loan or HP agreements taken out during the yearn• Details of any business income or expenditure that didn’t go through your business bank accountn• Your payroll records for the year together with details of PAYE calculations for payments to the Inland Revenuen• Anything else you feel may be relevant, if in doubt, include itnWe have the expertise to help you at all stages of the preparation of your year end accounts. If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley, would be happy to assist you. So please do not hesitate to contact us at Adiva Accountants in Bickley for further advice.n

    We, at Adiva Accountants in Bickley, summarise the preparation of year end accounts and how we can help if you are starting, or have started a business in Bickley, Bromley, Kent and London areas.

    We will provide here an overview of the information to provide to us to enable completion of your end accounts. The more you do, the less the time we have to spend on the routine compliance aspects of your business. So, the lower will be your accountancy fees and more time we will be able to assist you with developing your business. However, every client is different and we should discuss your particular requirements. Then we can decide what you can prepare for us and what we will have to prepare ourselves. We will be able to tailor our service to your specific requirements.

    We will agree a time schedule for when you will provide the records and for when we will have your accounts ready for discussion.

    There are a few ways in which you may find you can help us:

    • Adding up and balancing your books such as cross casting of column totals
    • analysing your payments and receipts in spreadsheets provided
    • filing your invoices in sensible system so that relevant invoices can be easily found

    If it is possible you can also assist further by:

    • Reconcile the bank. This is done by reconciling the balance on your bank statement to that derived from your records after adjusting for unpresented receipts and payments
    • Reconcile the debtors and creditors. This is done using control accounts for nominal accounts such as debtors and creditors that reconcile to your year end list of debtors and creditors

    The regular use of reconciliations and control accounts during the year, help to ensure that there are no errors in the records.

    We have the expertise to help you at all stages of the preparation of your year end accounts. If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley, would be happy to assist you. So please do not hesitate to contact us at Adiva Accountants in Bickley for further advice.

    We have the expertise to help you at all stages of your business development including management accounts. If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley, would be happy to assist you. So please do not hesitate to contact us at Adiva Accountants in Bickley for further advice.

    Our management accounting service includes the following:

    • Preparation of monthly/quarterly management accounts. This are tailored to the businesses exact requirements, including departmental analysis
    • Preparation of budget, forecast and cash-flow reports together with variance reports comparing these to actual results
    • Benchmarking reports
    • KPI reports and analysis

    and many more.

    We, at Adiva Accountants in Bickley, summarise the management accounts and how we can help if you are starting, or have started a business in Bickley, Bromley, Kent and London areas.

    In order to make informed business decisions the management need to know the up-to-date financial position on regular basis. This information is provided by the management accounts. So, they are needed to decide whether to employ a new staff member, invest in capital equipment or cut back on advertising spending in the next quarter.

    We can prepare the management accounts as regularly as you require. This would allow you to spend time doing what you are good at, running your business. We understand that a page full with numbers might not mean very much to you. So, our team will not just hand over the management accounts to you, but hold a meeting with you to review them. We will explain any trends, review performance and assist you in making informed business decisions. We can tailor our service to your exact needs often we use our other services alongside the preparation of the management accounts.

    We have found that our existing clients mostly use these services:

    • Accounting
    • Bookkeeping
    • Cloud Accounting/Bookkeeping/Payroll
    • VAT

    We have the expertise to help you at all stages of your business development and to help you with sources of finance along the way. If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley, would be happy to discuss your questions and proposals with you. So please do not hesitate to contact us at Adiva Accountants in Bickley for further advice.

    We outline below other possible sources of finance:

    Factoring finance

    The Factoring option provides you with finance against invoices that your customers have not yet paid. You can usually receive up to 85% of the value of the invoice immediately. You will receive the balance (less costs) when the customer pays the invoice.

    Hire Purchase (HP) finance

    This option is usually used to finance the purchase of equipment. Your business buys and ultimately owns the equipment but payments of capital and interest are spread over an agreed period of time.

    Leasing finance

    This is a method of financing equipment you do not need to own. The equipment is rented rather than owned and the rental payments are spread over several years. There can also be the option to fix maintenance costs as part of the agreement (contract hire).

    Matching

    You should try to match the finance to the purpose for which it will be used.

    Finance Purpose
    Working capital – overdraft or factoring
    Equipment and vehicles – fixed-term loan, HP or leasing
    Property – long-term mortgage
    Development / start up – investment finance

    Issuing more shares is another way of introducing funds to your corporate business. This is a good addition to business funds and gives additional strength to the company’s balance sheet. However, you need to consider where the funds are coming from to subscribe for the new shares. If the original owner of the business wishes to subscribe for these shares, then he or she may have to borrow money as discussed above. However, shareholders in this position are often at the limit of funds that they can borrow. So, it may be necessary to have an investor buying those shares. This may result in a loss of either control or influence on how the business is run. Considering this an issue of shares in such circumstances can be a very difficult decision to make.

    If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley, can help you in issuing shares to investors. So please do not hesitate to contact us at Adiva Accountants in Bickley for further advice.

    Venture capital

    If you approach venture capital houses for finance you will also have to issue new shares. The amount of capital they can introduce into the business is an advantage of going to such institutions. The British Private Equity and Venture Capital Association offers useful free publications (www.bvca.co.uk). Due to the considerable size of their investment, you can expect them to want a seat on your Board. They will also make available their business expertise which will strengthen your business. However, this will come with an additional pressure for growth and profits.

    Over the years, the government has introduced various tax-efficient schemes for entrepreneurs to invest in growing businesses. The current schemes available are called:

    • the Enterprise Investment Scheme (EIS)
    • Seed Enterprise Investment Scheme (SEIS) and
    • Venture Capital Trusts (VCT)

    The EIS scheme offers tax reliefs to investors in higher-risk small companies.

    The SEIS scheme is designed to help small, early-stage companies to raise equity finance. This scheme offers a range of tax reliefs to individual investors who purchase new shares in those companies. SEIS scheme recognises the difficulties which very early stage companies face in attracting investment. So, it offers tax relief at a higher rate than that offered by the EIS scheme.

    Retained earnings and drawings

    The well-being of a business is connected with the cash flow, so attention should be paid to that. If a proprietor would need more liquidity. Then it might be necessary to review the amount of money they are withdrawing from the business for their personal needs. If the personal drawings can be reduced, the additional funds earned by the business can be retained for future use.

    We, at Adiva Accountants in Bickley, summarise the means of finance that are available and where we can help if you are starting, or have started a business in Bickley, Bromley, Kent and London areas.

    The most fundamental aspect of business management is the financing of the business. If you get the financing right and you will have a stable business, positive cash flows and a profitable enterprise.

    The finance can be obtained from many different sources. Please find below just some of the means of finance that are open to your business.

    The bank loans and overdrafts

    Their own bank is the first place that most people think about when trying to obtain finance. The banks are actively seeking for businesses to whom they can lend money. The banks prefer to give an overdraft or to extend the limit, especially in small and start-up situations. Bank overdrafts are a flexible form of finance which can be paid off more quickly than a formal loan. If an investment opportunity arises in order to finance the project, you could look to extend the options on your overdraft facility. Many businesses prefer the advantages of a fixed term loan. The regular payments to be made on the loan make cash flow forecasting and budgeting more certain. For many owners, it is important that the bank is more committed to their business for the whole term of the loan. An overdraft can be called in but, but unless you are not able to make payments on your loan, the banks cannot take the finance away from you.

    The smaller loans will not usually require any security. However, for large amounts of money the bank will certainly ask for some form of security. While it is common for business owners to offer their own homes as security, for high risk borrowing you may prefer not to do this. We advise anyone offering their house as security to consult first with any co-owners. It is important that they are fully aware of the situation and of any possible consequences.

    The Enterprise Finance Guarantee Scheme may be another source of security. A start-up business unable to provide any other form of security may be able to get a guarantee for loans up to £1,000,000. Under this scheme, you pay a 2% premium on the outstanding balance of the loan. In return, if you default the government guarantees to repay the bank (or other lender) up to 75% of the loan.

    Savings and friends

    When commencing a new business, very often the owner invests his personal savings. Often the business start-ups approach relatives and friends to help finance the business. You should make it clear to them that they should only invest amounts they can afford to lose. You should show them your business plan and give them time to consider it over. After that, if they decide to invest in your business, you should always put the terms of any agreement in writing.

    The means by which finance is obtained will vary enormously according to:

    • the amounts required
    • the nature of the business
    • the risk exposure to the lender
    • the period for which finance is required

    You should invest time in formulating a funding strategy, as this would help the growing of your business.

    If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley would welcome the opportunity to assist you in formulating a business plan and raising finance.

    General finance

    There are many types of finance available, but it is important to find one that is right for your business. Choosing a wrong type of finance can hinder a growing business.

    The most available sources of finance include bank overdrafts and medium to long term loans and mortgages. Be aware that rates of interest can vary considerably depending on the type of finance. Therefore, we advise you to consult with a professional adviser before making your final decision.

    Specific finance

    There are specific methods of finance available for acquiring assets or releasing cash from debtors. You should consider the options available which include:

    • leasing assets
    • hire purchase
    • outright purchase
    • debt factoring
    • invoice discounting

    Each of these funding methods have advantages and disadvantages including implications for tax purposes.

    Other finance

    There are other means of finance available for your business from:

    • government sources
    • the issue of shares or
    • your own pension scheme

    Government sources can be in the form of grants, loan guarantees or an enterprise capital fund on a regional or local level. The British Business Bank is a government owned company which aims to make finance markets work better for small businesses. It works with over 80 partners such as banks, leasing companies and venture capital funds.

    Another option to consider is raising finance by issuing shares to investors.

    Security

    The lender will always require some form of security before offering the finance. However, the level of security sought may vary considerable and you should beware if the lender is asking for unreasonable guarantees.

    Fixed and floating charges

    The banks usually secure their loans and overdrafts by way of a fixed charge over land and buildings. Or with floating charges over other assets of the company such as stock and debtors.

    Personal guarantees

    For businesses with insufficient assets little security may be available. In these circumstances the security will be given in the form of personal guarantees. You should take extreme care before signing the personal guarantees, particularly the unlimited ones. This as it can be very difficult to amend them at a later stage and many borrowers have suffered as a consequence. It will be better if the personal guarantees are limited by time or amount.

    General

    Another way is to use other assets as collateral such as life insurance policies or by taking a second mortgage over your home. Whichever type of security pledged, it should be carefully considered and professional advice sought.

    You need to consider carefully every aspect before applying for finance. The funding requires a commitment in terms of capital and interest payments.

    The business must be capable of sustaining further growth or expansion. You need to consider the effects of expansion on manpower, materials and space too.

    Utilising better the existing resources

    First a business must consider whether it could improve its working capital from within. You should try to keep stock and debtors to a minimum. For this you should look at your billing and debts collection and consider different ways to reduce this time.

    Many businesses have surpluses of cash at certain periods of time. Rather than leave them on your current account, you should ensure that they are being used to generate income by investing on temporary short term deposit accounts.

    Business plan

    If additional external funding is necessary, it is important to plan in advance. You need to make up your mind on the nature of the project and the timing and the amount of the required finance. Creating a well-drawn up business plan is vital to any lending institution. It is not likely they will provide any assistance without a proper business plan.

    The business plan will include details of:

    • the objectives and aims of the business
    • the purpose of the required funding
    • sales plan and strategy
    • the financial position of the business with detailed cash flow forecasts and past accounts
    • the business ownership and history
    • management and responsibilities
    • products and market share

    If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley, can help you in raising the finance. So please do not hesitate to contact us at Adiva Accountants in Bickley for further advice.

    Every business will need finance from its commencement and through its development and growth.

    We will cover below different types of finance available. We will outline the planning required before approaching any lending institution.

    Whether you are just starting up or looking to develop and grow your business, you are likely to need finance. You need to know the finance that is best suited to the development of your business. If you are starting, or have started a business in Bickley, Bromley, Kent and London areas we, at Adiva Accountants in Bickley, can help you in raising the finance.

    If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas we, at Adiva Accountants in Chislehurst, can provide further help on insuring your business. So please do not hesitate to contact us at Adiva Accountants in Chislehurst for further advice.

    There are other categories of insurance, which are optional. So, a decision as to whether or not you need the cover will depend on the nature of your business and an assessment of the risks.

    Public liability insurance

    This is not compulsory and it covers claims for damages to third parties.

    Property insurance

    You can limit cover to specific risks such as fire and flood or providing more general cover. You need to consider the level of cover you would need for the equipment and stock too. If you rent your premises, then you should check that the landlord has the appropriate cover.

    Theft insurance

    If you do not have expensive items of equipment in your business you might decide not to have this one at least initially. If you decide to provide cover for theft, then a reasonable minimum level of security will be required by the insurer.

    Professional indemnity insurance

    This insurance is only necessary if you give advice which could make you liable. It protects against any loss suffered by your customers as a result of negligent advice. In professions, such as law, accountancy and finances it is compulsory. However, it is common in other sectors such as computer consultancy and publishing.

    Business interruption insurance

    This insurance provides compensation for lost profits and extra costs if your business is disrupted due to say a fire. It is also referred to as ‘consequential loss’ insurance.

    Key man insurance

    A small business is often dependent on key members of staff. How would your business cope, if they became seriously ill or died? Would you need to consider insurance cover to pay out in such a situation?

    Specialised insurance

    There are a whole host of different policies which cover a range of specialist situations, e.g. engineering insurance and computer policies.

    If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas we, at Adiva Accountants in Chislehurst, can provide further help on insuring your business. So please do not hesitate to contact us at Adiva Accountants in Chislehurst for further advice.

    Working from home

    Don’t assume that your normal household insurance will be enough, if you are starting your new business from home. Home insurance will not usually cover business risks. However, it is possible to obtain special ‘working from home’ policies.

    Level of cover

    It is important to shop around to get the best deal for your insurance. You should obtain several quotes before deciding which deal is the best for you. A personal recommendation may be the best way to decide.

    If you get too much cover your cash flow will suffer, but too little or no cover and the consequences can be catastrophic.

    With buildings and equipment cover make sure you are covered for the full replacement cost. If there is to be an excess on any policy make sure that it is set at a sensible level.

    Employers’ liability insurance

    Employers’ liability insurance is compulsory to cover your employees. By law you must have at least £5 million of cover although a minimum of £10 million is now provided by most policies. The certificate of insurance must be displayed in the workplace. If your business is not a limited company, and you are the only employee or you only employ close family members, you do not need compulsory employers’ liability insurance. Also, exempt are the limited companies with only one employee, where that employee also owns 50% or more of the company’s shares.

    Motor vehicles liability insurance

    Motor vehicles liability insurance is also compulsory and must cover third party insurance, which is the legal minimum.

    If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas we, at Adiva Accountants in Chislehurst, can provide further help on insuring your business. So please do not hesitate to contact us at Adiva Accountants in Chislehurst for further advice.

    Here we cover the types of insurance you may need when starting a new business. If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas we, at Adiva Accountants in Chislehurst, can provide you with any further information you require.

    When starting a new business, insurance can provide compensation and peace of mind should things go wrong. However, it can also represent a significant cost.

    In this factsheet, we describe the different types of insurance you need to consider.

    If you are struggling with credit control, then we would be happy to discuss this further with you. If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas, please contact us at Adiva Accountants in Chislehurst for more detailed advice.

    Please note that not paying your suppliers on time is a bad business practise and it may also result in a drop in your credit rating. You should:

    • ensure you advise your suppliers of any disputes as soon as they occur
    • pay on time by ensuring that your creditor’s ledger is accurately aged and
    • keep your suppliers up to date with any issues you have with paying on time

    Unfortunately, some businesses go bankrupt so you may wish to consider to have credit insurance where the business:

    • would not be able to function if important customers went insolvent
    • does not have the controls in place to ascertain whether a customer is likely to go insolvent
    • is struggling to obtain information on prospective customers
    • needs to improve credit management
    • is considering a new market venture

    Businesses should consider obtaining factoring and financing options when:

    • insufficient cash reserves are available to pay suppliers on time
    • the business needs to expand
    • the level of short term finance (including any overdraft facility) is insufficient

    staff do not have the right level of credit management skills

    First you should do is get to know your customer. You should do this before you take on a new customer and before you give them any credit. The bare minimum of what you should know is:

    • the exact name of the customer and the trading address (consider using Companies House Webcheck service)
    • their type of business structure, e.g. are they a sole trader, a partnership or a limited company?
    • names and personal addresses of the proprietors’ if their structure is unincorporated. Consider verifying letter headed paper to support this information
    • contact other suppliers to obtain references
    • their credit rating

    Before you provide goods or services to any customer make sure you address the following:

    • discuss and agree payment terms with the customer before accepting the order
    • agree the terms in writing
    • review any documentation from the customer where they try to change the agreed payment terms
    • negotiate and agree payment terms with suppliers before accepting the order
    • if there is a gap between customer and supplier payment terms, consider whether finance is available to bridge the payment gap. This will require an understanding of your working capital management
    • produce a cash flow forecast covering all expected income and expenses
    • have a standard policy in place to ensure that payment terms cannot be altered without appropriate authorisation
    • ensure that you have the right to apply late payment and interest charges on invoices

    After you have provided goods or services to a customer ensure that you:

    • raise invoices promptly
    • raise invoices accurately to ensure all items are included at the quoted prices
    • include a reference number for the order and then quote this if any dispute arises
    • have everything the customer requires on the invoice
    • have a process for chasing invoices
    • have a process for dealing with disputes
    • keep a log of disputes to ascertain whether similar disputes or customers occur
    • ensure that your invoices are fully compliant with HMRC for VAT purposes

    If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas, please contact us at Adiva Accountants in Chislehurst for more detailed advice.

    What are the main points to consider when taking on a new customer? The same points may arise in regard to your suppliers. If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas we, at Adiva Accountants in Chislehurst, can help you manage the credit requirements of the business.

    It is great obtaining new customers for the business, unless they fail to pay you. You need to check that the customer can support the amount of credit you are giving. If they do not pay, commencing legal action can be a long and costly process.

    If the customer does not pay and the goods or services have been provided, your cash flow is going to be under pressure. You will manage your business easier if you can ensure that the customers pay on time.

    If you do not pay your suppliers because you have not been paid by your customer, then you could also be damaging their business as well. This is a bad business practice and could be regarded as corporate social irresponsibility. You should treat your suppliers as you want your customers to treat you.

    When starting up a business, it is always necessary to tailor the strategy to fit your situation. Any business plan must take account of your circumstances and aspirations.

    Early professional advice can help to avoid some of the issues that all new businesses face.

    We would be happy to assist you in formulating a strategy and business plan suitable for your own requirements. Also, we can provide important accounting services such as bookkeeping, management accounts, VAT return, payroll and accounts preparation.

    If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas, please contact us at Adiva Accountants in Chislehurst to find out more about our services.

    When starting in business, you need to consider the taxation too.

    Taxation on profits

    The business structure will determine the type and rate of taxation. Please note that the taxable profit will normally be different from the profit shown in the accounts. This is due to certain expenses which are not allowed for tax purposes and the timing of some tax allowances. Please be aware that the payment of corporation tax must be made online.

    National Insurance (NI)

    The rates of NI contributions are generally lower for a sole trader or partnership than for a director of a company. However, it may be possible for a director to avoid NI altogether by paying dividends rather than salary.

    Value Added Tax (VAT)

    It is important to account correctly for the VAT of any business and neglect may result in a significant loss.

    When starting a business, you should consider the VAT. You will be obliged to register, if the value of your taxable sales or services exceeds the registration limit.

    Employing staff

    It may be necessary to employ staff to enable expansion of the business.

    It is the employer’s responsibility to inform HMRC of the wages due to employees. Also, it needs to deduct income tax and national insurance and to account for student loan deductions under PAYE. Then these deductions must be paid over to HMRC. The payroll records should be maintained properly.

    Since the introduction of Real Time Information (RTI) an employer must advise HMRC of wages and deductions ‘on or before’ the time they are paid over to the employee. You will also need to have knowledge of employment law.

    Business premises

    There are many issues to be considered in choosing business premises. You should consider the following:

    • suitability for the business
    • compliance with legal regulations
    • local by-laws
    • physical restrictions, such as access to business

    Insurance

    It is a legal requirement to have comprehensive insurance for business motor vehicles and employer’s liability insurance. There are other types of insurance to be considered such as public liability, consequential loss, business assets, Keyman and bad debts.

    Pensions

    There are favourable tax rules if you put money into a pension scheme. The latest reforms, under Pensions Act 2008, require UK employers in certain conditions to automatically enrol employees in a pension scheme. The employers and employees are required to make contributions to that scheme. There are various occupational pension schemes or the National Employment Savings Trust (NEST) can be used.

    From 2012 the largest employers have to comply with the new pension regulations. The deadline for being compliant (‘staging date’) is determined by the number of people in their PAYE scheme. For smaller employers the staging date is between 2012 and 2018.

    For your business to become a success there are a number of important factors which should be considered:

    • Commitment. As starting a business is a demanding process the determination and enthusiasm are essential.
    • Skills. To be successful you will need managerial, financial, technical and marketing skills. As hardly anyone has got all these skills, you have to hire a partner or employee, or acquire them through training.
    • Your product or service. They should have a proven market, but must not conflict with the patent or rights of existing businesses.

    Additionally, there are a number of more specific matters.

    The business plan

    The business plan is the most important. Most likely you will need finance and no bank manager will lend money without a sensible plan.

    The business structure

    There are three common types of business structure:

    Sole trader

    This is the simplest form of operating in business. However, the business of a sole trader is not distinguished from the proprietor’s personal affairs. So, your personal assets can be in danger.

    Partnership

    A partnership is similar in nature to a sole trader. As more people are involved it is recommended to draw up a written agreement of the terms of the partnership. Same as for the soletraders the business and personal affairs of the partners are not legally separate. Another possibility is to use a Limited Liability Partnership (LLP).

    Company

    Here the business affairs are separate from the personal affairs of the owners. But there are certain legal regulations to comply with.

    What is the appropriate structure for your business will depend on a number of factors and relevant circumstances. You should consider taxation implications, the legal entity, ownership and liability.

    Business stationery

    Depending on the type of the business structure, there are minimum requirements for the contents of business stationery, both paper and electronic.

    Books and records

    All businesses are required to keep records. The records can be maintained by hand or may be computerised. They should contain details of payments, receipts, credit purchases and sales, assets and liabilities. Please obtain professional advice before purchasing computer software to maintain your records.

    Accounts

    The accounts are produced by using the books and the records. If the records are kept properly it will be easier to prepare the accounts. Accounts must be prepared for HMRC and if the business is trading as a company, there are strict legal requirements for their layout. The accounts and company tax return must be submitted electronically to HMRC in a specific format (iXBRL).

    In certain circumstances a company and a LLP may need to have an audit. Also, they will need to make the accounts publicly available by filing them at Companies House within a strict time limit.

    If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas, please contact us at Adiva Accountants in Chislehurst for further advice.

    What are the main issues you should consider when setting up in business? If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas we, at Adiva Accountants in Chislehurst, can help you with appropriate and professional advice.

    Many people for different reasons like to run their own business. Somebody may have been made redundant. And find themselves with free time, important skills and financial resources. Others start up in business to become more independent and obtain the full financial reward for their efforts and skills.

    Whatever your reason for starting in business, you should be aware that a number of dangers exist. This factsheet cannot cater for every possibility and any decisions should be supported by professional advice.

    If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas we, at Adiva Accountants in Chislehurst, will be happy to discuss your plans and the most appropriate business structure with you. The most appropriate structure will depend on a number of factors including consideration of taxation implications, the legal entity, ownership and liability. So please do not hesitate to contact us at Adiva Accountants in Chislehurst for further advice.

    Here we cover the options available to you when starting your own business. You should be aware that there are tax and legal implications which have a bearing on the choice you make. If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas we, at Adiva Accountants in Chislehurst, can help you decide on an appropriate business structure.

    The most suitable structure for your business will depend on your personal circumstances and your future plans. The decision which structure to use will have consequences on the way you are taxed, your exposure to creditors and other important matters.

    There are five possible options you have as follows:

    Sole trader

    This is the simplest way to trade. Only a few formalities are required, the most important of which is informing HMRC. You should keep business records in order to calculate profits each year. You will pay tax and national insurance on your business profits. Any profits generated as sole trader are yours. The sole trader business is not distinguished from the proprietor’s personal affairs. So, if there are any debts owed to creditors, you are legally liable to pay those debts down to your last possession.

    Partnership

    A partnership is an extension of being a sole trader. In a partnership, a group of two or more people will come together and trade as a single business entity. They would pool their skills, clients and business contacts so that they can build a more successful business than they would individually. The partners will agree pre-determined percentages to share the joint profits. It is important to draw up a Partnership Agreement which sets the rules of how the partners will work together. Partners are taxed on their own share of the partnership profits in the same way as sole traders. Also, same as the sole traders, the partners are legally liable to pay the debts of the business. So, each partner is ‘jointly and severally’ liable for the partnership debts. If certain partners are not able to pay their share of the partnership debts, then those debts can fall on the other partners.

    Limited company

    A limited company is a separate legal entity from its owners. The company can trade, own assets and incur liabilities in its own right. The ownership of the company is recognised by owning shares in that company. You are both the owner and an employee of the company, if you work for the company. When a company generates profits, they are not yours, but are the company’s property. If you want to extract money from the company, you must either pay a dividend to the shareholders, or a salary as an employee. A great advantage is that you can have a combination of salary and dividends to minimise your tax and national insurance liability. Companies pay corporation tax on their profits after paying your salary. But this is before your dividend distribution. To achieve the best tax planning it is important that profits, salary and dividends are considered together.

    Trading as a limited company has many advantages as well as disadvantages. We have a separate factsheet on ‘What are the main benefits of incorporating your business’. This factsheet considers the merits as well as the downsides of operating as a company.

    It is easy and cheap to purchase a ready-made company, which are referred to as ‘off the shelf’ companies. However, there are additional administrative factors in running a company, such as statutory accounts preparation, company secretarial obligations and PAYE (Pay as You Earn) procedures. Probably the biggest advantage of owning a limited company is that your personal liability is limited to the nominal share capital you have invested.

    Limited liability partnership

    A limited liability partnership (LLP) is legally quite similar to a company. It is administered like a company in all its aspects apart from taxation. In taxation matters it is treated like a partnership. So, LLPs have the limited liability, administrative and statutory obligations of a company. But not the taxation and national insurance flexibility. TLLPs are suitable for medium and large-sized partnerships.

    Co-operative

    A co-operative is a mutual organisation owned by its employees. John Lewis Partnership is an example of such an organisation. These structures need specialist advice.

    If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas, we can help you develop a business plan. We look forward to help you put together your best possible business plan. So please do not hesitate to contact us at Adiva Accountants in Chislehurst for further advice.

    This factsheet covers why you should draw up a business plan and what it should include. If you are starting, or have started a business, we can help you develop a business plan. So please do not hesitate to contact us at Adiva Accountants in Chislehurst for further advice in business plans.

    Every new business should have a business plan. Your plan should provide a thorough examination of the way in which the business will start and develop. The business plan should describe the business, product or service, market, mode of operation, capital requirements and projected financial results.

    A business plan will help you to set clear objectives for your business and clarify your thinking. It will also help to monitor finances and profitability and to set targets for future performance. Also, it would provide early warning for times when you might need to reconsider the plan.

    Please note that anyone reading the plan will need to understand the what your business is about quickly and easily.

    Contents

    The business plan should cover the following areas.

    Overview

    This starts with your plans for the business and how you plan to put them into action. As this part of your plan will often be read by people unfamiliar with your business when possible try to avoid technical jargon.

    Description

    Here you provide a description of the business, your objectives for it and how you plan to achieve them. Details of the background to your business should be included too. For example how long you have been developing the business idea and the current work you have carried out to date.

    Personnel

    Here include the details of the key personnel including you and any external consultants and staff. Highlight the qualifications, skills and expertise that these people have. Plus cover how you intend to deal with any weaknesses.

    Product

    Here include details of your product or service and your Unique Selling Point. Here you have to outline what you do differently, that the competition does not offer. Your pricing policy should be included here as well.

    Marketing

    Here include details of your marketing plan and the markets you want to target. This may form the basis for a separate, more detailed, plan. Include an overview of your competitors and target of market share and details of the potential for growth. This is a very important part of the business plan as it gives a good idea of the possible chances of success.

    Practices

    Here include details on your proposed operating practices and production methods as well as the required premises and equipment.

    Financial forecasts

    Here include your projected financial performance and the assumptions made in your projections. This part of the business plan transforms into numbers what you have already said about the business. The plan should include a cash flow forecast. It shows how much money you expect to flow in and out of the business. Also, it should include profit and loss forecasts and a balance sheet. More detailed financial forecasts should normally be included as an appendix to the plan. As accountants and tax advisers we are well placed to help with this part of the plan.

    Financial requirements

    The cash flow forecast will show how much finance your business needs. The business plan should show how much finance you want and in what form. You should also describe what the finance will be used for and show that you will have the resources to make the repayments required.

    You should not view the business plan as a one-off exercise needed only when the new business is started. It is important that the plan is updated on a regular basis. This way it can be used as a tool against which performance can be monitored as part of the business planning process. So, if the business plan is used properly it keeps the business focused on its objectives and inspires a discipline to achieve them.

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