18th June 2021 / Core Accounting

What support can I get if I go self-employed or start my own business?

There’s talk of The Great Resignation 2021. A striking number of people are unhappy in their jobs, worn out by the pandemic and not looking forward to going back to their offices. Sources are saying as many as 40% of people are looking to leave their jobs in the next 6-12 months.

Of this 40%, there will be several thinking about going self-employed or maybe starting their own business. Maybe you’re one of them? It can seem like a bold move, especially if you have a secure job or you have a lot of responsibility. It’s always a good idea to weigh up the risks and create a solid business plan. You’ll also need to think about if you can afford it and if you are qualified to do what you want to do. Take time to consider the pros and cons. Here are a few as a starting point:

What are the benefits of going self-employed?

  • There can be more flexibility

  • You’re your own boss

  • You’re in control of decision making

  • You get to work in an industry you’re highly skilled and/or interested in

  • You may find job satisfaction

  • You choose how much you commute, what you wear etc.

What is the risk involved when going self-employed?

  • Lack of benefits such as sick-pay

  • Possible longer hours

  • No guarantee of income

  • More paperwork such as tax returns

  • Legislative requirements

  • Added pressure and risk

Is there any help available for self-employed people starting out?

HMRC have put together guidance, help and advice for those who are self-employed. This includes free videos and webinars and the opportunity to sign up for email alerts. If you’re thinking about going self-employed, it’s definitely worth taking a look at. It includes information on:

  • Getting started

  • Self-assessment

  • Record keeping

Even after you’ve read all the guidance and advice, it can still feel a little overwhelming. At the end of the day, you’re looking at starting your own business because you want to do what you love - you don’t want to spend your whole time getting your head around legal or legislative obligations.

Truth be told, you need to be very organised. But, on the accounting side at least, we’ve got some tools and tips that could make things a little easier for you.

How can cloud accounting help me run my own business?

Firstly, what is cloud accounting? Cloud accounting is a way of accessing your accounts using the web. You can do this in real-time from any device that has an internet connection.

We recently updated you on HMRC’s plans to Make Tax Digital, an initiative that requires businesses to use software to submit their accounts electronically. All VAT registered businesses with a taxable turnover under £85,000 will need to have adopted Make Tax Digital by their first VAT return after April 2022.

If you are a taxpayer who files an Income Tax Self Assessment for business the deadline for Make Tax Digital will be April 2023. Anyone can volunteer to adopt the digital process now though, so, with the deadline looming, you might want to consider using cloud accounting straight away.

We’ve used cloud accounting for many years now. It simplifies processes for our clients and streamlines financial administration - it also results in some pretty efficient bookkeeping!

We can provide Quickbooks installation, training and support and we have integrated the software into all our accounting services. Quickbooks automates a lot of the things you would have traditionally had to do manually so, as well as being a secure system, it is efficient and will save you time.

Another handy cloud accounting tool that we use is DEXT, which used to be known as Receipt Bank. This handy app takes information from your bills and integrates with Quickbooks. If you take a photo of a receipt as soon as you get it - remember what we said about being organised - it will save you a huge amount of time.

Cloud accounting is completely transforming the way we carry out our financial administration - for the better! While there’s no arguing that it is extremely secure, even those who were reluctant to take it up, now say they wouldn’t be without it.

It’s helpful to understand the scale of financial administration you might need to undertake, but don’t forget, we’re here to help! As experts in cloud accounting, we can guide you and take out the potential stress involved in setting up your own business, leaving you free to concentrate on what you love.

We are M.A.D Accountants, a firm based in West Bridgford Nottingham. We work with and support businesses and individuals throughout the UK. If you’d like to find out more about how we can support you through cloud accounting, please get in touch.

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