Taxation Tips from Accountancy Firms in Watford

accountancy firmsBy definition, taxation refers to the act of levying taxes by an appointed authority. Taxes come in many forms and are levied on individuals, organizations and businesses to be used to run the government, the country, a state or a municipality. The subject is not only complicated to begin with considering all of the legalities and rules surrounding it but also sensitive in such a way that mistakes can ripple into monetary penalties and legal consequences. It’s only apt that you take caution when dealing with it. To help us, accountancy firms in Watford have the following taxation tips for us to peruse and learn from.

Tip # 1: Track all of your transactions. – Income can be taxed. Owning a property will also make you liable just like buying goods and services among other things. This makes it crucial for any business entity to maintain a complete record of all transactions. Doing so will make it easier for you to compute and determine your tax obligations.

Tip # 2: Find an adequate and qualified professional. – Truth be told, not everyone is versed with this subject which brings us to the conclusion that you must put it upon yourself to find someone who is. Either you outsource the service or hire an internal employee for your company. If you’re an individual, you can still do so and hire a personal tax accountant instead.

Tip # 3: Be knowledgeable. – Even if you already have an expert to guide you and do all the work, it will still be beneficial if you get yourself acquainted too. Read up and research so that the process becomes easier and understandable to you. Also be aware that different countries, cities and towns are governed by varying legislations so there can be differences in taxation rules and procedures.

Tip # 4: Schedule everything up. – You cannot dillydally your way around taxes. You have to be able to file it completely, accurately and timely with the right set of documents otherwise you will be subjected to penalties for the delay. This could be pretty expensive so scheduling all your obligations shall cut back the risks.

Tip # 5: Don’t forget about your credits. – Accountancy firms in Watford, like, say that many individuals and businesses forget about tax credits. These are amounts that are allowed under the law to reduce either the tax liability or the taxable income. But to be able to take advantage of these, certain requirements must first be complied and the party seeking for them must instigate its acknowledgement.

Basic Accounting Concepts for Entrepreneurs from Accountants Watford

watford chartered accountantsIt is very important for entrepreneurs to be in the know when it comes to the financial aspect of their business. This is true even if you are not primarily responsible for your books and have professionals hired to take care of accounting. As owner, knowledge is crucial to ensuring that you understand the date being held and that you will not be confused about it, have it misinterpreted or worse have any employee take advantage with fraud. So what are the basics then? The best accountants Watford have rounded up the following for us.

ACCOUNTING PERIOD – This refers to the period or span of time with which the books are prepared. It runs for a length of twelve months and can be further divided into two types. The annual period is one which begins on any date as long as it completes the twelve month cycle. The fiscal year on the other hand starts on January 1st and ends on the 31st of December. There is no rule as to which period must be taken. Companies are given the liberty to choose among the two.

CONSERVATISM – Otherwise known as prudence, it is a policy that anticipates losses but not gains or in other words it requires companies to err on the side of understating assets and income and overstating losses instead of the other way around. This is done in the guise of uncertainty or doubt.

GOING CONCERN – This assumptions states that an entity provides will continue doing business for the foreseeable future long enough to carry out its mission, vision, goals, commitments and liabilities without any plan of liquidation. This is based on the fact that no company aims to invest with the end goal of losing and closing down.

MATERIALITY – An amount is material only if its addition or omission causes enough variance to significantly change a judgment or decision.

ACCRUAL METHOD – This principle necessitates that revenue is recognized when earned and expenses recorded when incurred regardless of whether or not actual cash has been received. Most companies follow this standard as it better reflects the entity’s financial position.

CASH METHOD – Quite the opposite, this recognizes revenues and expenses only when physical cash has been released or received. Although still present, the cash method is very seldom used today.

COST PRINCIPLE – This mandates that all assets and liabilities are to be recorded in the books with an amount equivalent to their acquisition costs and not their current market value.

Be sure to remember the above principles given by the friendly team of the best accountants Watford. Check out

How Unsecured Business Loans Work

A type of credit backed and issued by the debtor company’s creditworthiness rather than by a type of collateral is referred to as unsecured business loans. This is as simple as it gets. No more complications and unnecessary whatnots. However, a good businessman always wants to get into the core of things. The surface is never enough. So if you are thinking about taking on an unsecured loan for your company, you’ve come to the right place. Allow us to introduce them to you a little more.

For most cases, getting a loan from any provider will always require a type of collateral. Oftentimes, this is a real estate property but can be any other valuable asset no less. These are what you call secured business loans (SBL). Financial institutions will hold on to such collateral as a form of security or guarantee for the risks they take. Should the borrower default or become delinquent, the property is seized and foreclosed.

business financeWith unsecured business loans (UBL), such collateral is not required as already mentioned earlier. Creditworthiness is used instead. This poses bigger risks to the financial institutions which is why they may impose stricter requirements to borrowing companies. For instance, the interest rates could be higher. This is not always the case and will still vary depending on the lender and their terms. Moreover, one of the necessities of the application process is the company’s credit score and history to which their creditworthiness will be gauged.

An establishment that has a good or better yet a sterling credit score is more likely to get a quick approval and release of funds. These are companies whose credit history show that they have been good debtors to their creditors with payments sent on time and no obligations forsaken or avoided.

How about those that don’t have a ravishing record then? Are they barred from the service? Not exactly, although their application may not come through as quick. They can still garner an approval but don’t get your chances quite as high. Be realistic too. As entrepreneurs, you have to be.

Now, the main advantage of unsecured business loans is simple: the absence of collateral. With this, companies can rest assure that a property foreclosure is not a threat even if signs show that the organization can fully and timely comply with its obligations. Furthermore, in the event of an insolvency, unsecured loans are more likely to be written off than their secured counterparts.


Managing Your Pub Financing Like a Pro

pub loansWhen it comes to running a pub just like any other food and drink related business, managing your finances is crucial given the long list of expenses you have. How do you do this then? Fear not for it’s not rocket science. It’s pretty doable and nothing scientific. Read on to find out how to manage your pub financing like a pro.

  1. Keep everything recorded and reported.

In order to manage your resources, you will have to make a record of them. Each transaction must be properly analyzed, categorized and reported with their accompanying documentary evidences like receipts, sales invoice, delivery slips, and etcetera. This creates a systematic and accurate record of all transactions which you can use in the decision making stages.

  1. Have expenses, needs and resources match.

In short, make a budget. Know how much you have, what your needs are and the necessary expenses per period as well as contingent ones. By matching all of these, shortages and wastage are best avoided.

  1. Instill standard operating procedures.

In a pub, it is important to establish pour levels and serving sizes for all drinks and food. You will need this in the proper costing of your menu and bar items. This should also help avoid inconsistency in your servings. You know how much patrons and customers can be when they realize that you’re services are not consistent in quality and size.

  1. Check and examine.

In other words, make an audit not only of your records, transactions and financial statements but also of your operations. This should help shed the light on fraudulent activities that could have happened as well as inconsistencies and malpractices among employees. No more “drinks on the house” that have left you wondering how come the eighty shots ordered last night resulted in twenty boxes of empty liquor.

  1. Evaluate and improve.

Of course, there are always points to improve on at the end of the day. This is the purpose of your examination and evaluation. This should also help not only your staff and personnel but also you as the owner to improve upon your pub and make it bigger and better one day at a time.

Now that we’ve got all that cleared up, it’s time for you to manage your pub loads funding like the pro that you are.

The Pros and Cons of a Business Cash Advance

business cash advanceA business cash advance or otherwise known as a merchant cash advance is a financing method that allows entrepreneurs to borrow a certain sum in exchange for a percentage of its future monthly credit card sales, thus the name.

Just like any other financing option, it has its own terms and arrangements thereby its own set of pros and cons. Entrepreneurs, business owners and directors need to know what these are to better and more smartly weigh in its use. Will it be beneficial or will it bring more harm than good? These things have to be answered in order to come up with better decisions for the company. On that note, below is a list of the benefits and disadvantages that a business cash advance can bring.


  • There is little to no paperwork required. Unlike traditional credit types, the amount of paper work is much lower if not none at all. This makes it a good choice for emergency and immediate needs.
  • Cash is fast to acquire. Many providers can give you the cash in a few days time.
  • No property collaterals are required. You need not worry about losing any of our fixed properties to forfeiture.
  • Repayment is income dependent and not fixed. The payment is equivalent to an agreed upon percentage of credit card sales per month. If you have high sales then the bigger payment is and the faster it is closed out. The smaller it is then the smaller payment is too creating less to no financial strain on the company.
  • There are more chances of approval. Business cash advances have higher approval rates compared to bank loans for example.
  • You need not have a perfect credit score. Providers bank on your credit card sales more than your past and present credit grade making this an option even for financially distressed businesses.


  • They tend to have higher costs. Due to the higher level of risks involved, providers will require a rate that is slightly higher than what other financing methods may require.
  • Some providers may put in restrictions. To ensure the level of credit card sales, some providers will restrict discounts and sale to clients for example.s

Just keep in mind that the use of a business cash advance can vary. Moreover, no two entities are exactly alike so the pros and cons that arise can vary too. Make sure that you study and analyze carefully before jumping into conclusions.

How to Jazz Up Your Dining Space with Limited Restaurant Funding

restaurant-fundingThe biggest challenge for majority of food entrepreneurs is perhaps about maximizing what limited restaurant funding they have. They would want to stretch the available resources as much as possible without causing any strain on quality of products and services and effectivity of operations.

With today’s pull toward social media and the surging importance of not just great food but also quality experience, restaurateurs know how important interiors are in creating the right ambiance and feel to make customers crave for more. But with limited resources, how does one pull it off? How can one jazz up their dining space even with limited restaurant funding? Is it even possible? Yes it is and below is a list of some tried and tested ways to do it.

Paint on Walls – Instead of spending a ton on an overhaul project, why not do it with paint? A fresh coat of color can bring in a whole new dimension and perspective to the space. It’s affordable, easy and provides for a quick and simple touch up.

Add Personality – If repainting every inch of the place isn’t suitable or preferred then you can still come up with a similar output by incorporating accent walls. You can use wallpaper, paint or art to create attention, texture and personality on a single area. It’s a small update with big effects.

Incorporate Nature – A vase of flowers can do so much in livening up any interior. If maintaining and buying daily blooms feel like so much work and money to you then you can opt to invest in air plants, potted cacti and succulents in terrariums. They are easy to maintain and you don’t have to water them every single day.

Rearrange Furniture – Another way to do it and one that does not require spending even a single cent would be to devise a new arrangement of your chairs, tables and furniture. It simply creates a new perspective and look to your restaurant.

Hang or Display Art – This can be a painting, a digital artwork, postcards or anything that you can hang and frame that applies to the theme of your place. You have no idea how a simply framed quote for example adds so much dynamics to a room.

When jazzing up your dining space with limited restaurant funding, all it takes is a liter of creativity and a pinch of imagination. You can do so much even if your budget isn’t huge.

365 Business Finance: Common Budget Pitfalls for Entrepreneurs

business-financeWe all know very well that a financial plan is a key ingredient to ensuring that the business goals and endeavors are met efficiently, effectively and timely. It helps promote the proper use and allocation of available resources to maximize their benefits and stir clear of wastage. Unfortunately, many business owners still fall to the common budget pitfalls. What they are and how to avoid them are discussed below with the help of the team from 365 Business Finance.

Pitfall: Setting impractical and unrealistic expectations

When it comes to business, optimism is important and so is persistence and hard work. There is nothing wrong about aiming high but see to it that you do not overdo it. Do not set up your financial plan too high that it becomes impossible to achieve. That will only lead to frustration. Aim for a challenging one instead. Don’t lower it down too much either as that gives room for slack.

Pitfall: Not working with the right team

Creating a budget is not a single person’s job. Businesses are composed of varying divisions and departments. Each one has their own needs and allocations to provide for. This makes it necessary to not only have the right budget professionals but also key employees from the various divisions and departments to congregate and brain storm.

Pitfall: No follow through

You cannot create a plan, perform it and then not look back. You need to have a follow through, an examination and an analysis to check if the budget has indeed been effective and if slipups have occurred. This will help contribute to improvement in the future.

Pitfall: Failure to put details and specifics

You have to be as specific as possible. Think through your expenditure items and try not to miss anything. Examine what regular transactions transpire within your business and categorize them accordingly. This way, you get a better vision of what the entity’s needs and how much. Of course, the expenses in the previous periods will not be exactly the same for those to come but they will give you a pretty good idea on where to start.

Pitfall: Copying others work or that of the previous year’s budget

According to 365 Business Finance, many entrepreneurs simply repeat the previous year’s budget or worse copy that of a similar entity’s. Don’t. Keep in mind that what works for others will not work for everyone. Each company differs. Plus, consider every period as a new one. The prices of raw materials change. Sales can go up or down too so your needs will also vary every period.