The Internet has enabled small businesses to expand and evolve in ways that no one thought possible just a few years ago. In many ways, it is the best time ever to start a small business; in other ways, it is a very difficult time for small businesses. Since you can expand your small business into so many different markets, you can end up with very complicated accounting books. If you use the Internet to take your business international, you’ll have to deal with several different countries as well as very different import and export laws. The tax laws of different countries apply in different ways as well. For example, if you make money overseas, you could be responsible for the tax burden in that other country. However, the money you make overseas is also partially taxable in the UK.
Hire an Accountant
All of this can be very complicated, and the best thing you could do is just hire a professional accountant to help you manage all of these things. Before the growth of the Internet and social media, only the biggest companies could become international companies. They manage their books with dedicated accounting departments full of talented professionals. Now that small business owners can run international companies too, they are finding that they cannot afford to balance their books. Your small business cannot afford to have its own dedicated accounting department. However, you don’t need your own accounting department, for you have access to the best accountant firms in Nottingham. They’ll provide you with all of the services of a dedicated department at a fraction of the cost.
Business Tax and VAT Returns
There is a wide range of services available from an accounting firm. For many people who run businesses, the most important aspects are handling your business taxes and your VAT returns. Each quarter, you must calculate how much VAT you owe to the government. You then compare that to the VAT you are owed for purchases made by your business. It’s absolutely critical that you have good books so you can properly calculate the amount of VAT coming in and going out. If you don’t calculate your returns properly, it could cost you a considerable amount of money that your business needs.
Furthermore, there are business taxes you have to pay in the UK as well as around the world. For example, the United States does not have a VAT, but they do have a sales tax. Depending on what you are buying and selling and how you are exporting it, you could be liable for sales tax on your purchases. Furthermore, you might be able to deduct foreign taxes from your overall tax burden. A good accountant will know the specific rules, help you keep quality books, and calculate your overall tax burden. You’ll be able to keep great books without lifting a finger if you hire a qualified bookkeeper.
If you want to run a business like an international business, you need to hire an accountant to keep your books.