Do You have a Question for our Accountants?

Us Accountants frequently receive a variety of questions from clients, ranging from basic inquiries about financial practices to specific details about tax regulations and financial planning. Here are some common questions accountants often get asked.

1. What is the difference between an accountant and a bookkeeper?
   Accountants are typically responsible for analysing financial information, preparing financial statements, and providing tax advice, whereas bookkeepers handle the day-to-day recording of financial transactions.
   
2. How can I keep my financial records organised?
   Use recommended accounting software, maintain regular updates of financial records, and ensure receipts and invoices are properly categorised and stored.
   
3. What accounting software do you recommend?
   Popular options include Xero & QuickBooks, depending on the size and needs of the business. We can help you to make the accounts software decision based on your business requirements.

4. What deductions am I eligible for?
   This depends on your business type, personal situation, and current tax laws. Common deductions include home office expenses, travel, and business-related purchases.
   
5. How can I reduce my tax liability?
   Strategies include maximising deductions, contributing to retirement accounts, and ensuring all eligible expenses are claimed.
   
6. When are my taxes due?
   The official self-assessment deadline for filing your documents for the tax year ending April 5 (and for paying any money due) is midnight on 31 January.
   
7. What documents do I need to file my taxes?
   • your ten-digit Unique Taxpayer Reference (UTR)
   • your National Insurance number.
   • details of your untaxed income from the tax year, including income from self-employment, dividends and interest.
   • records of any expenses relating to self-employment.
     
8. How should I structure my business?
   The choice between sole proprietorship, partnership, LLC, or corporation depends on factors such as liability, taxes, and management preferences.
   
9. How do I read and interpret my financial statements?
   Accountants can explain key components like the balance sheet, income statement, and cash flow statement, focusing on metrics such as net income, gross margin, and current ratio.
   
10. What is the difference between cash flow and profit?
    Profit is the surplus after all expenses are deducted from revenue, while cash flow refers to the actual inflow and outflow of cash in the business.

If you have an accounts query you’d like to ask our team, please drop us a line at office@cbsltd.org or alternatively give us a call 01775 529345 – we’re here to support your business helping you to grow and be profitable.