Vernon Marshal
Accountants
1. Plan ahead
Prepare a budget or a cash flow forecast so that you can identify months when your outgoings are high.
You can then plan to set aside funds in the good months or to obtain finance in good times.
2. Do you know who owes you money?
Keep your records up to date so that you know exactly who owes you money at any one time.
Chase late payers as a priority task.
3. Check your Pay Coding
If HM Revenue and Customs issue you with a new notice of coding - check it. You could be paying too much tax
each month from your salary or pension.
4. Can new customers pay?
Carry out credit checks for any new customers placing large orders - don't get caught by non payers.
5. Use the right VAT scheme
You may not know it but there are several different VAT schemes which can be used by a business.
You may be able to use the flat rate scheme which cuts down on administration and offers 1% discount in the
first year. You may also be eligible to use a cash accounting scheme which can help you with your cash flow.
6. File Tax Forms online
From 1st April 2010 you will have to submit your VAT Returns online and pay any VAT due electronically if
either of the following applies:
- you have an annual turnover of £100,000 or more (exclusive of VAT)
- you register or should have registered for VAT on or after 1st April 2010 (regardless of turnover)
If you fall into either of the groups mentioned above, you will have to file all your VAT Returns (including nil
and repayment returns) even if your turnover drops below £100,000 in the future.
7. Plan your Capital Spending
Make sure that you talk to your accountant before purchasing a large asset. Allowances may be claimed on these
assets and you should ensure that they fall into the most efficent tax year.
8. Know your break even point
This is the selling price of an item or service at which you break even. If the price is any higher then you will
make a profit and any lower a loss. If you know this then you can set your quotes and prices at the best level.
No point in selling a large volume of items or services at a loss.
9. Keep your profile up
Many business owners cut down on PR and Marketing in difficult times. This can only mean less business in
the future. There are ways to market yourself to keep in the public eye without spending lots of money.
Ask us how.
10. Make sure your assets are in the right name
Every person is entitled to an annual exemption for capital gains tax. In 2009/2010 this is £10,100.
This means that if a second home for example is in joint names then two lots of annual exemptions can be used
to reduce any possible capital gain.
10 Top Tips
to Help Your
Cashflow
