An understanding of what are tax bills and what constitutes business profits – its more than just cash in the bank!
3 November 2020
Before I started accountancy, I worked in a family owned restaurant. I had the wonderful responsibilities of looking after the accounts, paying the bills, and dealing with our accountant.
I could never understand how our accountant was working out our tax bill when we had no money in the bank! To my mind we were not making much money, but our accountant always gave us a tax bill. There was never anything in the bank. My curiosity into how accounts and tax works led me down the path of a career to accountancy and here I am today.
Thinking back to those days I think there was a big detachment between the accounts I was looking at and what my accountant was looking at. Like most business owners my idea of profit was cash in the bank. If there is no cash in the bank, then how could we have a profit? I now know there is much more to it than that.
We now live in a digital age and have technology literally at our fingertips. There are so many solutions to help people keep on top of their bookkeeping and help them understand what profits they have made. At Simon & Co, we specialise in helping clients go digital – We have been providing accounting services not only in Kent but across the UK. We will help you choose a solution that works for you, we can teach you do your own bookkeeping or do your bookkeeping for you. We can then show you reports, showcasing what your taxable profits are giving you, all in real time, these reports will also the clarity you need in understanding how your taxes are calculated. We believe with this knowledge you will be able to make better financial decisions.
If you are struggling to understand why your tax bills are so high and do not know if you are making a profit or how much you are making, then please GET IN TOUCH WITH US FOR A FREE ACCOUNTING CONSULTATION ON HOW WE CAN HELP.