There are many accounting questions you may have for your small business, here we have tried to answer as many as we can. Our topics include everything your business may need to get up and running right through to completing your year end returns.
Below is a brief description and full information can be found using the links.
What are fixed assets? An item that a business owns to run it’s business, includes computers, plant, machinery and buildings.
How do I calculate depreciation? There are several different methods to calculate depreciation, including straight line and reducing balance method.
What is credit control? The process to collect money owing from a customer
What is double entry bookkeeping? Most organisations use double entry bookkeeping for their accounts. For each transaction 2 entries are made.
What is a purchase invoice? It is an invoice received from your supplier.
How to do a sales invoice? Sales invoices are issued to customers, they can either be generated manually or using accounting software.
What is a trial balance? Accountants and bookkeepers use a trial balance to see a complete picture of the accounts.
How to do stock control? If your business sells stock you will need to put procedures in place.
Registering a Business Questions
Why Form a Limited Company? A legal company is a separate legal entity, which can have some advantages.
How to register a company in the UK A limited company is registered at Companies House.
How to register as Self-Employed To register as self-employed, you need to contact HMRC.
How to form a partnership A partnership is an agreement between 2 or more people. You may need a solicitor to draw up and agreement.
How to name your business Thinking of a business name can be hard. Try to think of something that is unique that people will remember.
How to register for VAT? VAT registration is done through HMRC, you can either apply yourself or your accountant can do it on your behalf.
What is the UK VAT Threshold? There is a threshold that businesses must register for VAT, the figure can be found on the link.
What is flat rate VAT? Flat rate VAT is a fixed rate calculated on the sales of the business.
How do you get a VAT number? A VAT registration number is issued from HMRC when you apply for registration.
How do you deregeister for VAT? If you no longer need to be VAT registered you can contact HMRC and request deregistration.
What are the current VAT rates? The standard VAT rate is 20%
What is Annual Accounting VAT? If you just compete an annual return for VAT, payment is still required each quarter and the final payment at the end of the year will be adjusted.
What is Cash Accounting VAT? Cash Accounting is when your VAT is calculated when you received or pay cash.
What is business banking? It is best to have a separate business bank account to your personal one.
What is business insurance? Make sure you have the correct insurance in place, speak to an insurance adviser to ensure the correct level of cover.
What’s a business plan? Planning you business for the next 3 – 5 years will help you know how you can grow it. It will be required if you need investment or a loan.
If you have any other accounting questions which we have not answered, try searching this site or drop us a message.
Return from accounting questions to Business Accounting Basics page.