You wouldn’t let anybody look after your legal matters, would you? And would you take financial advice from someone you met in the pub? Hopefully not. Ok, what if you were ill, would you seek help from any Tom, Dick or Harriet? Of course not, you’d make an appointment with your doctor.So, when you entrust someone to look after your business’s finances you need to make sure they are fully qualified and regulated. The point I’m getting at here is that solicitors, financial advisors, and doctors have to, by law, be qualified. Accountants on the other hand do not.Anybody can call themselves an accountant, including me. I mean, I’m really good with figures, especially mental arithmetic but I have no relevant experience, technical expertise or qualifications, so trust me – no pun intended – you wouldn’t want to let me look after your books or file your tax returns. &lt;IMAGE1 /&gt;Therefore, with the financial health of your business being of paramount importance to its survival, it is imperative that you thoroughly check any accountant you engage the services of to ensure they have the relevant qualifications and experience.What could go wrong with an unqualified ‘accountant’Just think of the disastrous consequences of using an unqualified ‘accountant’ when it goes wrong. You won’t have anywhere to turn to if you are not satisfied with their conduct, advice or service. Most unqualified accountants will not have professional indemnity insurance, so in the worst-case scenario your business could close.There are even unscrupulous companies that offer immediate online accreditation for charlatans masquerading as accountants, so don’t be hoodwinked by a certificate and a few letters after their name. I hasten to add that these are the small minority, but it only takes one to cause a lot of damage to a business.What is a chartered accountant?A chartered accountant has studied and passed a comprehensive range of exams that cover subjects including financial performance, business analysis, financial management, taxation and auditing. This is in addition to three years of practical experience working in an authorised accountancy firm. All of this allows them the accreditation of chartered status.Chartered accountants are highly qualified and experienced in their chosen profession and will be a member of one of the following professional bodies for accountants in the UK. The ICAEW – the Institute of Chartered Accountants in England and Wales; ACCA – the Association of Certified Chartered Accountants and CIMA, the Chartered Institute of Management Accountants. Reaching chartered accountancy status is in essence a benchmark showcasing the necessary skills, knowledge, experience and commitment to the financial and business sector.Even after qualification, many chartered accountants will continue to study and sit courses to ensure that the advice they provide is accurate, relevant and up to date. They are also independently checked to ensure the highest standards of service to clients is maintained. And just as importantly to ensure they have sufficient professional indemnity insurance cover to compensate clients if anything goes wrong.&lt;IMAGE2 /&gt;What does a Chartered accountant do?Chartered accountants have the expertise to undertake a diverse range of financial and business functions. In addition to the usual accounting services such as VAT, payroll and tax returns, they can also advise and practice on more complex issues such as:<ul><li>Business financial management – audits, cash flow forecasting and managing funds</li><li>Corporate finance – sales, acquisitions and mergers</li><li>Personal financial advice</li><li>Business strategy</li><li>Forensic accounting – fraud investigation</li></ul>Choose one that suits your businessOne final point worth noting is that once you have verified that your accountant is fully qualified, make sure they have experience of working with businesses of your size and in the same sector. The majority of chartered accountants will specialise in specific disciplines, such as audits, commercial finance or estate planning.Thankfully here at Business Butler we have fully qualified and vetted&nbsp;Accounting Experts who can help your business. Just<a href="https://www.businessbutleruk.com/business-experts?service=&amp;freetext=Accounting" rel="noopener noreferrer" target="_blank"> click here </a>and select the one you want to work with.Business Butler is an on-demand talent platform that connects users with a panel of vetted business experts who specialise in a range of business disciplines. To find your ideal expert please<a href="https://www.businessbutleruk.com/business-experts" rel="noopener noreferrer" target="_blank"> click here</a>. &nbsp;

Engaging the services of a chartered accountant is essential for any business owner because working with an unqualified accountant could close the business.

The importance of using a chartered accountant | A blog by Business Butler

The importance of using a chartered accountant

The bookkeeper can play a vital role if incorporated into a small business. Hiring a bookkeeper can help your finances make more sense and can help free up time for other tasks that might need doing, usually when starting a small business the bookkeeping responsibilities would fall on yourself. Today I am going to be discussing how hiring a bookkeeper can really help small businesses in the long run. More often than not accounting and bookkeeping gets mixed up with each other, but bookkeeping is a smaller role than the accountant’s but just as important. Some of the bookkeeper’s roles would include reporting and recording financial information, and the accountant’s work is primarily using data as a tool to establish a business’ financial position in the industry, and to also make decisions on how said finances are looked after and managed. &lt;IMAGE1 /&gt;What does a Bookkeeper do?A bookkeeper’s main role is to manage your everyday business finances but they also tend to; making sure you pay the right amount of tax, chasing up payments from customers or cliental, making bill payments, claiming back tax, e.g. expenses, and also managing the payroll to ensure payment to employees and HMRC (Her Majesty’s Revenue and Customs) are made on time and correctly. A bookkeeper will use three types of financial records in order to track the in and out payments that the business makes. There can be more books used but the minimum amount of records kept is three. Keeping the books accurate is crucial for how your business reports its finances and it is essential if you get faced with an audit. The three records mentioned include; a cash book which records cash flow, a purchase invoice which is to record what has been purchased and how it was paid for, and a sales invoice which is used to record what has been sold and also manages unpaid and paid invoices made to the company.&nbsp;&nbsp;How could hiring a Bookkeeper help my business? Hiring a bookkeeper can be helpful in many ways. Firstly, it allows you to free up time to focus and pad out your business strategy. As any business owner who has managed their books themselves would know, having to record every transaction, even the tiniest ones can get overwhelming and destructive to other parts of your business. Furthermore, having a second set of eyes on your cash flow can help ensure that your business doesn’t suddenly run out of money within a blink of an eye. An accountant in some scenarios may not even be needed as they primarily focus on preparing and filling out statutory returns, advising information on the legal entity structure, and giving business and financial advice. &lt;IMAGE2 /&gt;But on the other hand, a bookkeeper is someone who is trained in taking care of the day-to-day accounting, and an expert in organising and keeping record of all transactions that a business makes. It can prove more cost effective and efficient to just have a bookkeeper working for you. Instead of having both a bookkeeper and accountant, as with some business scenarios an accountant isn't warranted. Of course hiring an accountant is important with businesses needing to take care of the tax computation and monthly reconciliation, But you might want to weigh up what the financial side of your business actually needs and then decide who to hire. Help is availableRunning a small business doesn’t have to be as hard as it can be at times. There are plenty of well-trained people out there to give a helping hand. “O Bookkeeper, Bookkeeper, where art thou Bookkeeper?” Well, lucky for you, Business Butler has got some excellent Bookkeeping experts to choose from. To speak with a Bookkeeper regarding your business just press &lt;HelpButton /&gt; &nbsp;Business Butler is an on-demand talent platform that connects users with a panel of vetted business experts who specialise in a range of disciplines including marketing, law, finance and human resources. To find your ideal expert please <a href="https://www.businessbutleruk.com/business-experts" rel="noopener noreferrer" target="_blank">click here. </a> &nbsp;

Hiring a bookkeeper can prove beneficial for small businesses and there are several reasons to do so.

How Hiring A Bookkeeper Can Help Small Businesses | A blog by Business Butler

How Hiring A Bookkeeper Can Help Small Businesses 

&lt;IMAGE1 /&gt;A Guest Blog by Matthew Jones, ACA CTA, R&amp;D Tax Credit Expert.It is no secret that HMRC are enforcing a variety of measures to prevent abuse of R&amp;D tax credit claims following the&nbsp;recent identification and prevention of fraudulent attempts totally over £300 million.&nbsp;This is a loud and public warning.&nbsp;Choosing the wrong adviser can potentially place you in very deep water. So, I will answer some FAQs to provide clarity on the supplier selection process.What are the main considerations when choosing an adviser?When looking to employ any professional service, there are inevitably a mix of factors to consider before selecting your preferred supplier. To put it simply, you should ask yourself the following questions:Can they do the job effectively and efficiently?Can you find evidence on how the supplier has helped others?These questions seem simplistic enough on the surface but in practice, how do you find the answers? My advice would be:Check the supplier’s credentialsR&amp;D tax credits is a complex area of tax law, one of which is not offered as standard by mainstream accountants as it is not a compliance service. Due to its highly technical nature, it is imperative that your adviser has the necessary qualifications needed to undertake the work with the highest level of detail and accuracy.&nbsp;The adviser should be a qualified chartered accountant (ACA or ACCA) or chartered tax adviser (CTA). Having these qualifications will guarantee that they have passed the necessary exams and are regulated by professional bodies, enforcing them to follow strict codes of conduct.&nbsp;A chartered adviser should have experience in a variety of areas of corporation tax, allowing them to understand how the R&amp;D tax credit claim will impact other aspects of your finances, which is important. I would investigate the volume of claims made by the adviser.&nbsp;Should they only help prepare a handful a year, it is unlikely they will have the detailed knowledge and experience to deal with all aspects of your R&amp;D tax credit claim.&nbsp;Investigate the service level availableA full-service consultancy will take you through the entire R&amp;D tax credit journey, from initial consultation, through to submission and beyond. This will not be the case with all suppliers, with some forcing you to rely heavily on your own accountant after the claim has been put together.&nbsp;Learn from othersCheck the supplier’s website for any testimonials or case studies providing information on the experiences of other clients. I would also recommend browsing their social media channels to see if they have published any good news stories or successes.Get a second opinionThe majority of consultancies will provide a free no obligation assessment of your company’s situation and will provide advice on whether they feel it is worth pursuing a claim. I would recommend getting a second opinion, you have nothing to lose.Look out for unusual behaviourWhen engaging with an R&amp;D tax credit adviser, I would advise to proceed with caution if any of the following situations occur:<ul><li>&nbsp;The adviser alludes to the claim value in the initial meeting.</li></ul>Without the relevant investigations and detailed calculation exercises, it is impossible to say how much your claim will be worth from an introductory meeting.<ul><li>The adviser takes a blanket percentage of your employees’ wages to include in a claim. </li></ul>Not all employees will spend the same amount of time on R&amp;D activities, so it is important that an adviser looks at each employee separately when calculating costs to include in the claim.<ul><li>An adviser’s fee seems too high or too low.</li></ul>We have seen some advisers charging 25% – 35% contingent fees. This cannot be justified. Other advisers charge super low fees. This too should concern you – either they will not spend much time on your claim, or they will have to use unqualified staff to prepare it.&nbsp;<ul><li>The adviser ties you in with a long fixed term contract (usually hidden later in the terms of the contract)</li></ul> We have seen companies tied into 5 year contracts with super high fees, and in some cases, some clients being duped into signing for long periods with the tie in clause being hidden in the supplier’s contract.&nbsp; &lt;IMAGE2 /&gt;Surely all R&amp;D tax credit advisers are qualified accountants or tax advisers, aren’t they?Unfortunately, not. Surprisingly, unlike in the law profession, regulation is not compulsory in order to set up an R&amp;D tax credit consultancy.Should I re-evaluate my current adviser?As with any supplier, it is important to evaluate the service you are receiving on a yearly basis. This will ensure you are continually getting the best service for your requirements at any given time.&nbsp;Who has the overall responsibility on the accuracy of my claim?If you are a company director then you have the overall responsibility for the accuracy of your claim.&nbsp;Therefore, you need to have full confidence in your supplier to do the correct calculations and produce an accurate report. You need to ensure that the company has the relevant insurance policies in place which will go towards protecting you if anything did go wrong.To speak with Matthew for specialist R&amp;D tax credit advice, please <a href="https://www.businessbutleruk.com/expert/matthew-jones" rel="noopener noreferrer" target="_blank">click here</a>.<a href="https://www.businessbutleruk.com/blog" rel="noopener noreferrer" target="_blank">Click here </a>to read more blogs from Business Butler.

R&D Tax Credits, how much is your business missing out? Read more here.

Choose the right R&D tax credit adviser

How to ensure you choose the right R&D tax credit adviser

You wouldn’t let anybody look after your legal matters, would you? And would you take financial advice from someone you met in the pub? Hopefully not. Ok, what if you were ill, would you seek help from any Tom, Dick or Harriet? Of course not, you’d make an appointment with your doctor.So, when you entrust someone to look after your business’s finances you need to make sure they are fully qualified and regulated. The point I’m getting at here is that solicitors, financial advisors, and doctors have to, by law, be qualified. Accountants on the other hand do not.Anybody can call themselves an accountant, including me. I mean, I am really good with figures, especially mental arithmetic but I have no relevant experience, technical expertise or qualifications, so trust me – no pun intended – you would not want to let me look after your books or file your tax returns.Therefore, with the financial health of your business being of paramount importance to its survival, it is imperative that you thoroughly check any accountant you engage the services of to ensure they have the relevant qualifications and experience.Just think of the disastrous consequences of using an unqualified ‘accountant’ when it goes wrong. You won’t have anywhere to turn to if you are not satisfied with their conduct, advice or service. Most unqualified accountants will not have professional indemnity insurance so in the worst-case scenario your business could close.There are even unscrupulous companies that offer immediate online accreditation for charlatans masquerading as accountants so don’t be hoodwinked by a certificate and a few letters after their name. I hasten to add that these are the small minority, but it only takes one to cause a lot of damage to a business. To make sure you are not one of the victims read on…There are several professional bodies that accountants in the UK can be members of, including: The&nbsp;ICAEW&nbsp;– the Institute of Chartered Accountants in England and Wales; ACCA&nbsp;– the Association of Certified Chartered Accountants and CIMA, the Chartered Institute of Management Accountants.To become a qualified accountant can take several years of study and professional examinations before being allowed to advise clients. Even after qualification, many chartered accountants will continue to study and sit courses to ensure that the advice they provide is accurate, relevant and up to date. They are also independently checked to ensure the highest standards of service to clients is maintained. And just as importantly to ensure they have sufficient professional indemnity insurance cover to compensate clients if anything goes wrong.One final point worth noting is that once you have verified that your accountant is fully qualified, make sure he or she has experience of working with businesses of your size and in the same sector. By doing this you are assured of having an accountant that best suits the needs of your business.Just remember that unless you want someone like me looking after your books, be sure to engage the services of a qualified chartered accountant.If you would like to speak with one of our chartered accountants, please click on the following link:<a href="https://www.businessbutlerbristol.com/help-for-business/accountant-bristol/" rel="noopener noreferrer" target="_blank" style="background-color: transparent; color: rgb(122, 139, 152);">https://www.businessbutlerbristol.com/help-for-business/accountant-bristol/</a>

When you entrust someone to look after your business’s finances, you need to make sure they are a fully regulated and qualified accountant.

Who is looking after your books? A blog created by Business Butler

Who’s looking after your books?

Making Tax Digital (MTD) is the government’s initiative to modernise and simplify tax administration for everyone, by moving the whole process online. This pioneering venture promises to make tax submissions more effective, more efficient and easier for taxpayers. However, with recent research suggesting that 30% of businesses are unaware of what this means for them we’ve written a to clarify the situation.Let’s first understand why MTD is being introduced. Figures reveal that mistakes made when submitting tax returns costs the Exchequer more than £9 billion per year but the software used for MTD will reduce the number of errors, increase accuracy and therefore save the Government vast sums of money in tax. Additionally, HMRC want to be a world leader in the field of digital taxation administration.<a href='https://www.businessbutlerswansea.com/wp-content/uploads/2020/01/Digital-tax-2517-scaled.jpeg' rel='noopener noreferrer' target='_blank' style='color: rgb(122, 139, 152); background-color: transparent;'><IMAGE1 /></a>MTD for VAT started in April 2019 so any VAT registered business with a taxable turnover above the VAT threshold must take advantage of the Government’s MTD service to keep digital records and download the compatible software to submit VAT returns. This includes sole traders, partnerships, trusts, charities and limited companies with a turnover in excess of £85,000. Business that qualify and who fail to comply with MTD may incur a penalty. HMRC has stated that Corporation Tax won’t be affected by MTD until 2021.The Government is focussing on helping the transition for businesses to MTD as seamless as possible and an income tax pilot scheme is currently being run by HMRC. They are encouraging self-employed business owners to download the relevant software and sign up to their secure service to keep digital records and submit Income Tax updates. There are several companies providing compatible accounting software and you can use it on a subscription basis with bespoke packages to meet the size of each business.Many business owners may be pleased to know that the introduction of MTD means the end of the annual tax return. However, businesses will have to submit the relevant financial data through their digital tax account instead, and this must be done at least every quarter. This will give businesses an indication of how much tax is owed on an ongoing basis rather than finding out at the end of the year.<a href='https://www.businessbutlerswansea.com/wp-content/uploads/2020/01/tax.jpg' rel='noopener noreferrer' target='_blank' style='color: rgb(122, 139, 152); background-color: transparent;'><IMAGE2 /></a>Small businesses should benefit from MTD by becoming more efficient through eliminating the need for any paperwork. The new process means they will be able to keep track of their income and outgoings in real time and more efficiently enabling them to make more accurate and timely business decisions.Although HMRC haven’t given any specific dates, MTD will be rolled out to all other types of business owners in the near future.For more information about how MTD will affect your business and for compatible accounting software,&nbsp;<a href='https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital' rel='noopener noreferrer' target='_blank' style='color: rgb(122, 139, 152); background-color: transparent;'>click here.</a>

Making Tax Digital (MTD) is the government’s initiative to modernise and simplify tax administration for everyone, by moving the whole process online.

The importance of using a chartered accountant

How Hiring A Bookkeeper Can Help Small Businesses

How to ensure you choose the right R&D tax credit adviser

Who’s looking after your books?

Making Tax Digital explained

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