I’m Barbara, the owner of Barbara’s Bookkeeping. I decided to start my bookkeeping business to help business grow out of the pandemic. My business grew out of that period, while it was dark for us all, there was some light at the end of the tunnel. I was laid off from my work in hospitality, and having been furloughed and then made redundant I decided to retrain. I’d always had a good head for numbers and wanted to do something to support people building their local businesses. Hence, I took the opportunity to invest in my future and in yours and became a fully qualified bookkeeper. And Barbara’s Bookkeeping was born.
There are many challenges for small businesses and finance, and how to pay taxes is one of them.
The Federation of Small Businesses (FSB) regularly conducts surveys and publishes reports on the challenges faced by small businesses in the UK. Their reports often touch on tax issues, including concerns about complexity and administrative burden.
Another issue for small businesses is making tack digital (MTD) – The MTD information page on the HMRC website acknowledges that some smaller businesses may find adapting to digital record-keeping and filing challenging. How are you planning for MTD?
Accounting software companies, I use QuickBooks and Free Agent, hold data on how small businesses can find managing the money side of the business taxing.
And if we look at the challenges…
The complexity of the tax system: The UK tax system can be complex, with multiple tax types and filing requirements for small businesses.
Keeping accurate records: Keeping accurate and up-to-date financial records is crucial for completing tax returns accurately and efficiently. This can be time-consuming and challenging for small businesses with limited resources.
Meeting deadlines: Tax deadlines can be strict, and failing to comply can result in penalties. This can be stressful for small business owners who may be juggling multiple responsibilities.
Understanding tax reliefs and allowances: There are various tax reliefs and allowances available to small businesses but understanding them and claiming them correctly can be complex.
Cost of hiring an accountant: While hiring an accountant can alleviate some of these challenges, it can be an additional expense for small businesses with tight budgets.
At Barbara’s Bookkeeping, we charge for the work we do, and because we’re a small business, like you, we are conscious and conscientious about how we do it.
