Frequently Asked Questions

Cost Accounting
The vital function of cost accounting is that it allows a business to decipher the production costs by considering how much they collectively spend to purchase the necessary supplies to create their products. 

Managerial Accounting
Managerial refers to the company accounting department that concerns itself with preparing and obtaining all financial documents ready for higher-level staff and general management. These documents for management remain within the organisation. 

Many managers use these financial documents as a guideline for making business decisions and managing costs. 

Find out more about our  business accounting services.

It is helpful for every business to have an accountant to manage all finances of the employees. 

Many companies consider doing the taxes without the assistance of a professional, qualified accountant to save money. There are always possibilities of missing out on essential things, information or even doing something wrong. 

The tax laws can become quite complex once you start issuing pay to your employees or sorting their information. It is best to get someone to assist you to do all business taxes. 

No, it is not mandatory to have an accountant when you are self-employed, as it becomes more acceptable to complete your tax returns. 

If your business is relatively straightforward, sole traders don't need to turn to an accountant. They must, however, stay on top of paperwork and all necessary invoicing. 

Therefore, it is best to gather all information on the tax claims you can receive, how much you can claim, etc. Although, if it becomes too much for you, you may want to invest in an accountant when your business begins to expand. 

When you feel you need help with analysis of taxes, your collections or reporting any financial information is when you should consider hiring an accountant. A professional accountant can help interpret all your data to assist in making better business decisions and provide advice for your company's money. 

Small companies and businesses are often not required to prepare any full accounts but may be asked to file more direct reports and invoices. Dormant companies are not expected to prepare HMRC accounts until they officially begin trading. 

Read more about  account preparation in Manchester.

Accounts are prepared through the accounting cycle. 

First, you will have to analyse and ensure you record all transactions, including invoices, bank statements, receipts, etc. 

Next, the transactions are posted to the ledger made up of journal entries of all business transactions. 

It would be best to prepare unadjusted trial balances by totalling all credits and debits from all company accounts, calculating the total balance.

Adjust the entries to ensure all financial statements contain relevant information to the specific period you are currently interested in or focused on. There are four primary types of these adjustments; accruals, tax adjustments, deferrals and missing transactions. 

Then prepare for yourself an adjusted trial balance. The purpose of this trial balance is proof that all your ledger's debits and credits are balanced after all adjustments are made. 

Finally, you can prepare the financial statements and balance sheets made up of owners equity, liabilities and assets.

The first step is the collection stage; this is the earlier stage of the accounting process. During this part, financial data regarding sales and any business purchases or transactions are collected. 

Next is the processing stage; during this step, things begin being recorded into the accounting systems. But, first, we enter general journal entries for all company transactions, and those are transferred over the ledger. The ledgers are then totalled, and an unadjusted trial balance is officially created. 

Finally, the last step is financial reporting. The financial reports used by the business are all brought to completion, including the Balance Sheet, Statement of Owner's Equity and Income Statements. We then place these numbers on all respective financial statements. 

Auto-enrolment is the opportunity to boost your overall retirement savings through the pension scheme in the workplace. It also offers the benefit of receiving money from the government and your employer. 

You cannot access this pension payment pot until you reach the age of 55; until then, pensions companies or schemes hold onto it for you. Many employees that fit the criteria are immediately placed into their workplaces pension scheme unless they decide to opt out. 

Find out more about  auto-enrolment for pensions.

Automatic enrolment is a somewhat compulsory position for employers to offer their employees a workplace pension. Employers must enrol each worker that fits the criteria under the scheme and make a minimum contribution to it. 

Employees can receive tax relief on all contributions they make but can leave the scheme whenever they please. 

Auto-enrolment is an inclusive scheme applying to all employees that meet the criteria, including seasonal, temporary staff, short-term staff and other members of your team that have irregular hours or incomes. 

To achieve a tax return, you will require the following information or documents: 

• Your National Insurance Number
• Your 10-digit UTR (Unique Taxpayer Reference)
• Records of expenses regarding your self-employment
• Details of untaxed income exclusively from the tax year, including dividends, interest on shares and payment from your self-employment
• P60 or any other existing records displaying how much income you have received that you previously paid tax on
• Any charitable or pension contributions you have made that are eligible for tax reliefs

Read more about our tax returns preparation services in Cheadle Hulme, Manchester and Cheshire.

You can prepare your taxes yourself by following these steps:

• Understand the filing deadlines clearly
• Ensure that you file all necessary details and data
• Review all your documents from the previous year
• Gather all necessary documents
• Choose itemised or standard deductions
• Add any state tax filing if need be
• Double-check all your forms and data in your possession
• Request an extension if you need more time
• File all finances electronically
• Check all returns were received

If you are a sole trader or self-employed, you must earn more than £1,000 before doing any tax returns or claiming tax relief. 

You must keep all your records if you have to send HMRC any self-assessment tax returns. The forms will allow you to fill in your tax return information accurately. 

HMRC may want to check your tax return, so it is best to keep your records as they may ask you for documents as proof.