How do successful businesses avoid such difficult times?
These businesses maintain a meticulous cash flow system, checking and balancing daily, and take enough care when dealing with cash by qualified personnel. They use cash flow management skills. You are a small new business, and if you desire to move forward, you must keep your payments to bills, salaries, and purchases on time for the cash flow system to be well under control. When you keep your accounting under control, your customers are bound to make the payments on time; this will help you to run your business effectively.
Tax payment deadlines cannot be missed.
Self-employed people have to submit their tax returns at a particular time and make payments as soon as possible to avoid interest on the amount of tax payable. Tax calculations are based on the income less the allowable business expenses, and declare it to your tax office. If, by chance, your deadline is approaching and you haven’t prepared the return, you will have lots of tension and headaches over it. Therefore, you should give yourself plenty of time to prepare your returns to submit to your tax office; by doing that, you will have peace of mind. Remember, one thing that you cannot miss or avoid is the tax declaration and making payments on time.
Computerization of your business accounting system using Sage package. Many helpful points exist in computerizing the accounting system.