York is very much a small-business city. Latest figures show that 86.7% of businesses in York are micro businesses employing fewer than 10 people, with more than 6,000 businesses falling into this category.
For many of these businesses, the accountant’s traditional role has been relatively straightforward: prepare the annual accounts, calculate the tax and make sure the necessary returns are submitted on time.
But is that enough?
Good accounting should also help a business owner understand what is happening before the year has finished.
For a limited company, this could mean looking at the most tax-efficient way to take money from the business, planning dividends, reviewing the director’s loan account or considering pension contributions.
For a sole trader, it might mean monitoring profits during the year, planning for upcoming tax payments or considering whether VAT registration is approaching.
Modern bookkeeping software such as Xero, QuickBooks and QuickFile also means financial information can be available much sooner. Rather than discovering the final profit months after the year end, business owners can have a much clearer picture throughout the year.
That doesn’t necessarily mean producing complicated monthly reports. For many small businesses, a simple periodic review of turnover, profit, cash flow and expected tax liabilities can provide much of the information needed.
When did you last sit down and review the numbers in your business?
If you’re running a small business in York and would like to understand your figures better, call MCO Accountancy in York and we will help you look beyond the year-end accounts.