What is bookkeeping?

Accurate bookkeeping is essential for both Sole Traders and Limited Companies. It involves systematically recording all financial transactions, including income, expenses, assets, and liabilities.

How can TaxMate help?

We offer a fully-managed bookkeeping service. You will send us your documents each month (invoices, receipts) and easily connect your bank account to our app for reconciliation – we then have everything we need to start taking care of your bookkeeping. Our team will get you setup with either the TaxMate App, or TaxMate Post service as a way to send your documents to us, whichever you feel will be easiest for you to manage.

What is the TaxMate App?

Using the TaxMate App, you can easily upload your financial documents, receipts, and invoices. Our platform allows you to manage your records efficiently – snap photos of your receipts and upload them directly to your account, and click a button to send your documents to us at the end of the month. We also have an easy banking integration tool, where you can connect your online banking securely to our platform, which will automatically send us your bank statements fo reconciliation at the end of each month – if you don’t want to do this, you can of course still just send us your bank statements manually if you prefer.

Want to complete your own bookkeeping?

We have some businesses who like to complete their own bookkeeping in house, which is also something we are happy to work with. You can use your own software such as Quickbooks, Xero or Sage, and you just let our accountants know when your bookkeeping is up to date, and we will go in and collate this information to produce your VAT returns, Statutory Accounts and any other accounting services you have signed up for.

What are statutory accounts and why are they important for my Limited Company?

Statutory accounts, also known as annual accounts, are financial statements that Limited Companies are legally required to prepare and submit to Companies House and HMRC at the end of each financial year. These accounts provide a detailed overview of your company’s financial performance and position.

Our experienced accountants handle the entire creation and submission of your company accounts. You will receive your accounts for reviewal through to the TaxMate App at the end of your financial year, where you can download and approve in one click. We will then submit these to Companies House on your behalf.

The Importance of Professional Advice

Running a business as a sole trader involves more than just providing products or services. Having access to professional accountancy and tax advice can make a significant difference in how you manage your finances, optimise your tax liabilities, and plan for the future. At TaxMate, you will be assigned your own dedicated, highly-qualified Senior Accountant – each of our accountants are also supported by a fantastic team of Bookkeepers and Junior Accountants. You will be able to message your accountant about anything through the TaxMate App, where we respond to all messages within 24 hours. You will also be able to call our main phone line and talk to your accountant at anytime, because sometimes nothing beats a bit of good old-fashioned service.

How Can TaxMate Help Me Save On Taxes?

Our tax advisors can help you identify allowable deductions, optimize your business structure, and implement effective tax planning strategies to minimize your tax liability.

Identifying Allowable Deductions: One of the most effective ways to reduce your taxable income is by claiming all allowable deductions. Our team of tax advisors thoroughly reviews your business expenses to ensure you are claiming all eligible deductions. These may include:

• Business Expenses: Costs directly related to running your business, such as office supplies, utilities, and professional services.
• Travel Expenses: Travel costs incurred for business purposes, including mileage, accommodation, and meals.
• Home Office Expenses: A portion of your home expenses if you use part of your home for business purposes.
• Equipment and Assets: Depreciation or direct deduction of business equipment and assets.

Optimizing Business Structure: The structure of your business can impact your tax liabilities. While sole trader status offers simplicity, there may be tax advantages to restructuring your business. Our advisors assess your situation and provide guidance on whether a different structure, such as forming a limited company, might be more tax-efficient. Benefits of restructuring can include:

• Lower Tax Rates: Limited companies are subject to corporation tax, which may be lower than personal income tax rates for higher earnings.
• Dividend Payments: Drawing income as dividends rather than salary can reduce National Insurance contributions and income tax liabilities.
• Additional Allowances: Access to additional allowances and reliefs available to limited companies.

VAT Optimization: If you are VAT-registered, managing your VAT obligations effectively can lead to tax savings. Our VAT services include:

• VAT Scheme Selection: Advising on the most beneficial VAT scheme for your business, such as the Flat Rate Scheme, which can simplify VAT reporting and potentially reduce your VAT liability.
• Expense Management: Ensuring that all eligible VAT on business expenses is reclaimed, reducing your overall VAT bill.
• Accurate Reporting: Helping you maintain accurate records and prepare timely VAT returns to avoid penalties and interest charges.

Understanding Management Accounts

Management accounts are crucial financial reports that provide insight into the performance of your business on a regular basis. Unlike year-end financial statements, which are primarily used for tax reporting and compliance, management accounts are produced monthly or quarterly and are designed to help you make informed decisions about the day-to-day operations of your business.

At TaxMate, we offer full management accounts, ensuring you have the timely and accurate financial information to run your business effectively.

Key Components of Management Accounts

Management accounts typically include a variety of financial reports and key performance indicators (KPIs) that give a detailed picture of your business’s financial health. The main components are:

• Profit and Loss Statement (P&L): This report shows your business’s revenues, costs, and expenses during a specific period, providing a clear picture of your operational performance and profitability.
• Balance Sheet: A snapshot of your business’s financial position at a given point in time, detailing your assets, liabilities, and equity.
• Cash Flow Statement: This report tracks the flow of cash in and out of your business, highlighting how well you manage cash to meet short-term obligations and fund operations.

Understanding VAT Returns

For Sole Traders and Lmited Companies who are registered for VAT, managing reporting obligations can be a time-consuming and complex task. VAT returns require accurate records of sales, purchases, and the VAT collected and paid. Failure to comply with VAT regulations can result in penalties and interest charges.

At TaxMate, we offer a comprehensive VAT return service designed to simplify the process and ensure you remain compliant with all HMRC requirements. Our expert accountants manage every aspect of your VAT returns, allowing you to focus on running your business.

Why choose TaxMate for your VAT returns?

Our team of experienced accountants ensures that your VAT returns are prepared accurately and submitted on time. We help you avoid costly mistakes and penalties by managing your VAT obligations meticulously.

• Detailed Record-Keeping: We maintain thorough and accurate records of all your transactions to ensure that your VAT returns are complete and compliant.
• Timely Filing: We monitor all your VAT deadlines and ensure that your returns are filed promptly, avoiding any late filing penalties.

Maximizing VAT Efficiency

TaxMate’s VAT return service is designed to help you maximize efficiency and potentially reduce your VAT liability:

• VAT Schemes: We advise on the most beneficial VAT schemes for your business, such as the Flat Rate Scheme or the Annual Accounting Scheme, to simplify your VAT reporting and potentially save you money.
• Input VAT Recovery: We ensure that you claim all eligible input VAT on your business purchases, reducing your overall VAT bill.
• Expense Management: Our team helps you identify which expenses are VAT-deductible and ensures they are accurately recorded and claimed.