I will be starting a new business, but most likely won't launch until 2015. As I would like to run the business from home, I have been searching for sound information and advice i.e costs and the likes. I would like to have studied a bookkeeping course and do the accounts myself, but understand this would take up valuable time, which I could better place actually producing my products. I therefore came across this site when looking for bookkeeper costs and information, and was amazed at the post from the crunchers person relating to personal worth etc. I would never criticize anyones qualified ability, but good business ethics and manners are essential. Anyway, I already have the product ideas, but would like to know the best place for information relating to licensing / permits and the likes. This is where I lack the knowledge. I have done a Sage 50 course at college so have some skills to be able to update a computerised system. Is it possible for me to do this to then have a qualified bookkeeper to actually look after the accounts? Any advice would be much appreciated.
Hi, I'm going to sell one off piece's i.e. costumes, stools / furniture (bought and renovated), curtains, cushions, dolly bags, money bags and the likes. I don't want to limit my market, so am willing to add and adjust to suit (to keep sales year round). If however, I come up with great ideas, I'd like to protect them (obviously). Because I will run the business from home, I need to properly understand the in's and out's. I have a varied background. I'm artistic and am able to create a lot from nothing. I tried to add pictures of the curtains I made for my kids, but for some reason, it's not working. I've had a lot of feedback for this sole product, which is very encouraging. I look to selling this particular idea to several soft furnishing companies (no exclusivity as I want to aim at the full market). Music is my biggest forte, though I am creative and can draw very well, hense I will put this creativity into practice as a business. I look forward to your reply.
You can run the accounts using Sage but maybe you should at other software which you can find online such as Xero.
What you should be looking at is what expenses you can claim:-
1. Motor Expenses - if you use your car on business you can claim mileage allowance at a rate of 45p per mile for the first 10000 miles and 25p per thereafter. You can record your mileage by keeping mileage sheets.
2. Use of home as office - you can claim a proportion of utility bills, council tax, rent/mortgage interest and property insurance.
3. Mobile and Home Phone - You can claim for business calls which you can identify on the itemised bills.
The other considertaion you need to make is whether you run your accounts on an accruals basis (invoices) or cash accounting basis (payments and receipts) which is coming in from this April.
If you use the accruals basis then you will need to account for Trade debtors, Trade creditors and stock.
If you use the cash accounting basis then you will not need to worry about trade debtors, trade creditors and stock. Your taxable profit will based on Receipts less payments less scale expenses (i.e. mileage allowamce, use of home as office and interest).
Obviously, the cash basis will be easier to run. However, it may not be the best and most tax efficient way of running a business and it certainly will not help if your require accounts to support, for example, a loan application.
