Nowadays, more and more small businesses are home-based, and it is not difficult to see why when you consider the many benefits that are associated with it. This includes helpful tax incentives, minimal expenditure, and, of course, you can always work in your pyjamas. If you run your business from home, or you are thinking about doing so, read on to discover some top tips from a London accountant and tax advisor to help you make sure everything runs smoothly.
Keep your overheads to a minimum – You may make a lot of money, but if you also spend a lot of money, then you are never going to get anywhere. Remember, it is about how much money you keep, and thus overhead is pivotal. This is a trap that a lot of home-based business owners fall into, as they don’t have to worry about the likes of rent, and as a result they find themselves overspending in other areas.
Structure your day – Time management is one of the most difficult challenges when it comes to running a business from home. A lack of efficiency can be a major problem, as it is easy to be distracted when at home, from browsing online to watching the television. You should provide yourself with a schedule for the day, and stick to it. You need to find time to unwind too.
Work where you are most productive – It may be tempting to grab your laptop and work from your bed, but it is unlikely that you are going to get much done if you do this. Instead, you need to work where you are most productive, whether this means creating a home office or even popping to a local coffee shop or library. Sometimes you need to go outside of your usual working area, as fresh surroundings can give you a boost in your productivity levels on days where you are really lacking in motivation.
Hire an accountant – A lot of small business owners view hiring an accountant in London as an unnecessary expense. However, it can save you a lot of money in the long-run, as your accountant will ensure that all of your books are in check and they will alert you to any tax breaks you may not be taking advantage of. One of the best things to do is to look for business that offers a fixed fee accountancy service, as you will be charged a set price on a monthly basis and this will help you to manage everything more effectively.
Become a jack of all trades – You are essentially the office manager, secretary, tech support and CEO for your company. Of course, you do not need to become an expert in all areas – this would be an endless task. However, you do need to have basic understanding of the likes of bookkeeping, computer problems and such like. This will ensure that you can deal with any little issues yourself and thus you won’t have to hire a specialist every time a problem crops up.