We all hate handing money over to the taxman but I’m afraid it comes with the territory of being self-employed. If you’re employed you don’t give it as much thought as the payment is automatically taken off you each month. When you’re a business owner you need to make sure you’re putting money away each month in order to pay your tax bill.

“I saved enough throughout the year and paid my tax bill on time” 

“It was all a bit last minute scraping the money together but I managed to pay on time”

“I didn’t have enough money to pay my tax bill”

Which category did you fall into? At this time of year we often get new clients approaching us as they’ve fallen into the latter two categories. They’re worried that they will struggle with their next tax bill too.

At LJM Bookkeeping we can help you to put steps in place to make sure that you’re saving for tax throughout the year and that your tax bill isn’t a nasty surprise. This may mean cutting back on spending in certain areas, increasing your prices, looking at what products and services have been popular in your business and those that haven’t been as much. There are various ways of improving cash flow in your business. 

Keeping your bookkeeping update as frequently as possible is essential so that you know your current financial position. We can use historic data to determine the future success of your business by implementing cash flow forecasting. Once you know where you are heading you can then plan your finances better.

We advise all of our clients to save at least a third of any sale they make. Using a savings account or savings space in your online banking app is the perfect way to do this. If you need someone to hold you accountable each month so you’re putting the money aside then we can be that someone. 

We love seeing the stress being lifted from our clients shoulders when we give them the support they need. Not only can we help you with your business finances but we can also introduce new ways of working in order to improve efficiencies and increase productivity. 

If you want to have a better plan and not have to worry as much about paying your next tax bill then please reach out to us.