Managing Your Finances - Claire Rulton, Addison Accounts You have created a business to make you money, and whether you sell goods or services, you need to make a profit. To do that you need to manage your finances and cashflow carefully. So what are the best ways to do it? I will talk you through practical steps to help you control spending and grow your business without taking excessive financial risks. Claire Rulton has been an accountant for 15 years and runs her own accountancy business and runs finance workshops for Velocity & Wenta. She specialises in helping businesses understand accounts. Claire is also involved in #bedshour and Build Business in Milton Keynes @BYoB_mk as well as being a trustee for local Bedfordshire charity FACES. She runs creative business PlatePeople with her partner - decorating ceramics - so know how to run a business from an accounts perspective as well as running it practically. www.addisonaccounts.co.uk @addisonaccounts

1. Managing your Finances
An Introduction to Bookkeeping & Accountancy
Addison Accounts & Tuition
Claire Rulton, March 2016

2. What’s Today Going to
Cover?
What you need to know about
accountancy and bookkeeping in
a nutshell

3. Am I going to make you an
accountant?
NO!
Unless you want to be!

4. Q1 What are the different
legal structures you can have?
Sole
Trader
Limited
Company
No simple answer to which is best

5. Some questions to help you
decide
• What’s your turnover and your profit figure
• Your future plans to grow the business
• What customers may think
• Would you like to sell your business in the
future
• Reducing tax bill vs. extra time working on
and not in your business

6. Sole Trader
Pros
• Easiest way to set up
• No one else sees your accounts
• Losses can be set off against other
income
• Personally liable

7. Limited Company
Pros
• Some companies will only work with Ltd’s
• Separate legal entity to the company
• May appear more professional (prestige)
• Better tax planning opportunities
• Easier to sell

8. Q2 How does VAT work?
• Can apply if you are a sole trader or a
Limited company
• The threshold for 2015/2016 is £82000
cumulative

9. Q3 Do I need an accountant?
Legally No
My favourite
question

10. So why have one?
• An accountant can save you money
• Let you spend time doing the things you
enjoy
• Stop you making expensive errors
• Access to the Correct (and Better) Tools
and Education

11. So why have one?
“At some point you will have to let go, and
learn to trust other people
to handle some parts of your business”

12. Q4 What Can I claim
(Business Expenditure)
Not allowable
• Entertainment
• Clothing (except safety/uniforms)
• Subscription to Golf/Health Club
• Formation costs of Ltd. Co.
• Personal drawings (self employed)
• Purchase of capital items
Special Rules
• Pension payments
• Depreciation of capital items
• Expenses including private use (Self employed, Ltd Co.)

13. Business Expenditure
• A business can incur any expenditure it
thinks fit and proper
• Only expenditure which is ‘wholly and
exclusively’ incurred for the purpose of the
business is allowable as a tax deduction
• If you’re not sure seek professional advice
• Self employed - 0845 9154 515
• Self Assessment - 0845 9000 444

14. Q5 What’s the Difference
between a bookkeeper and an
accountant
• Price, Qualification, Level of advice
• Bookkeeping = day to day records of
income and expenditure
• Accounts = Summary of income and
expenditure over a specific time (usually
one year)

15. Keep in touch
• Radio on the 11th April In2beats & on
BBC 3CR
• Accounting software course course 15th April
at 44 Harpur St
• facebook.com/addisonaccounts/
• twitter.com/Addisonaccounts
• www.addisonaccounts.co.uk

16. Managing your Finances
An Introduction to Bookkeeping & Accountancy
Addison Accounts & Tuition
Claire Rulton, March 2016