Have Business Expenses Got You Hiding Behind The Sofa?

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RecieptsWhen you work for another company, expenses are a perk of the job. Most of us head to the accounting team before anything else and enjoy getting money back no end. But, as soon as you go it alone, expenses take on a whole different face.

As simple as that, something which has always pleased you can bring a load of pain. That’s because tax returns and monthly profits get much more confusing when you throw expenses into the mix.

For this reason, many of us opt to remove expenses from our accounts altogether. This can make your tax return a breeze, and you may assume that it’ll make your income easier to understand, too. When your outgoing expenses are small, this omission may even be worth your while. But, as your business grows, expenses will become the bees in your bonnet.

Suddenly, the amount you’ll pay out isn’t quite so small. Instead of making any money, then, you’ll leave yourself in debt. And, you won’t even get any tax relief for it. If this is the situation you find yourself in, it’s past time for a change. Keep on reading to find out how you can overcome your fear of expenses once and for all.

Do thorough research about what you can claim

A lot of our expense fears come from uncertainty. The last thing you want is to file for expenses which leave in trouble with the tax man. But, there’s no reason to let this stop you from filing for anything. In general, anything that you’ve had to pay for for the sake of your business should be fair game. If in doubt, though, don’t hesitate to research. There are endless online sources, from blogs to articles by HMRC themselves, which can clear up the confusion here forever more.

Get help with the claiming itself

There’s no denying that a tax return can be pretty daunting when expenses come into play. Suddenly, you’ll need to scan receipts instead of stating how much you earnt. But, you don’t need to struggle with this alone. As your business grows, you may even find that it’s worth entrusting this task to an outside company.

You would then just need to email or send them your expense receipts and let them do the rest. If you turn to an accountancy company like Qdos Accounting, you could even send your expenses straight through on their app. This brings such ease to the process that you may be left wondering why it took you so long to get around to this.

Work out how much money you would save

If the above isn’t enough to convince you, it’s worth turning to the good old financial benefits you stand to see from finally claiming that money back. You may come to find that this could knock far more off your tax bill than you realised. Once you’ve sat down with a calculator, the chances are that even fear won’t get in the way anymore.

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Like Minds is a global thought leadership platform delivering world class events on business development, knowledge and insight aimed at entrepreneurs and business leaders to engage, stimulate and empower them to become global businesses of the future. We also offer a bespoke service for corporate clients and training programmes under the Like Minds U brand. For more information please email bespoke@wearelikeminds.com