Being the owner of a trades business can be hugely rewarding and equally challenging. Most workers start as an apprentice. Develop their technical skills at college and through work experience. Until the point where the attraction of being their own boss means they set up on their own.
Trades workers talents align with their experience, like most skilled professionals. Therefore taking the step from employee to business owner brings a demand for new skills. Being a small business owner you are required to wear many hats. Your training didn’t teach you about accounting, tax, marketing or the legal side of things.
Therefore getting expert advice and support from a trade accountant from the start will help you cover any skills gaps. This will help your business function at its optimum. Given time service-based businesses should be profitable. Correct pricing and a good handle on costs with skilled, motivated technicians will in most cases mean a job well done. With cash in the bank and profit in the accounts. However, profit can mean money owed to the tax man.
So how do trades businesses beat the tax man?
Accountants are generally very busy, partners can have hundreds of clients on their books. Trades professionals and partners at accounting firms can be worlds apart. This can mean little to no relationship. The tradesman knows their business well and engages with the accountant to keep the business compliant and provide peace of mind. The accountant’s fees are generally competitive to keep the business owner happy for the lack of value being provided to them.
At Accounting Inc. we are not just your average accountants in Newcastle who work on outdated numbers. We make it our job to understand your business and the industry you operate in. When we understand your business, then we can really add value.
When we take you on as a new client we will do a health check and deep analysis of your business. We’ll work out what you’re doing well and not so well. What quick wins there are and what longer-term opportunities exist. This includes maximising tax savings. We may look at the following to reduce taxes:
- Sole trader vs Ltd company
- Company share structure
- Salary vs dividends
- Pension contributions
- Marriage allowance
- Utilising losses
- Tax credits
- Company vehicles
- Correct VAT scheme
- Capital allowance planning
During our onboarding meeting, we will discuss your goals for the business and put an implementation plan together to help you get there. Once we know where you are going we can plan ahead to reduce any future tax liabilities.
Therefore the key to beating the tax man is having a strong relationship with your accountant who understands your business. Alongside having up to date numbers in a
Tools like Xero and Receipt Bank make accounting easy. At Accounting Inc. our bookkeeping service takes the hassle out of managing your books. We understand paperwork is the last thing you want to be doing after a long day on the tools. Our programmes are a cost effective way to manage your finances, maximise all tax savings and help you grow more profitably.
We offer a free informal, no obligation consultation. So give us a call, email or even text, and we’ll discuss how we can help you over a coffee or beer.