FREQUENTLY ASKED QUESTIONS

As a small business owner, Moonstone Accountants can provide you with invaluable assistance in managing your financial affairs. Our team of Small Business Accountants is dedicated to helping you stay focused on your core business activities without the burden of handling financial minutiae. Partnering with an accounting firm streamlines and simplifies the entire process, making it more efficient for you.

Your primary objective as a small business owner is likely centered around business growth and sustainability. With a skilled accountant on your side, or through the support of an accountancy firm like Moonstone Accountants, you can save both time and money. This allows you to maintain a clear focus on the expansion and prosperity of your business.

For Individuals:

If you're an individual dealing with your taxes, navigating complex financial regulations and tax codes can be a challenging task. Moonstone Accountants can provide you with a solution. Opting for an accounting firm to manage your finances, rather than attempting to handle them on your own, offers a more streamlined and efficient approach.

Our team of experts is well-versed in the intricacies of tax regulations, ensuring that your financial affairs are handled with accuracy and compliance. With Moonstone Accountants, you can alleviate the stress and complexity of managing your personal finances, allowing you to focus on other important aspects of your life.

The initial process of accounting is Bookkeeping, which is a direct record of all sales and purchases that your business conducts, while accounting is more of a subjective look at what that data means for your business. Bookkeeping works with recording and organising financial data, while accounting focuses on the interpretation and presentation of that data.

Mixing your business and personal finances is a common issue, especially for small businesses, and it's a cause for significant concern. When these finances are mingled, it can lead to difficulties during tax season and make it challenging to gauge your company's profitability. What's even more worrisome is the possibility of facing an IRS audit and substantial fines.

To ensure a clear separation between your business and personal finances, consider the following best practices:

  1. Open a Dedicated Business Bank Account: Establish a distinct business bank account to keep your business transactions separate from your personal ones.

  2. Obtain a Business Credit Card: Acquiring a business credit card enables you to differentiate business expenses from personal ones, making tracking and managing expenditures more straightforward.

  3. Utilize Accounting Software: Implement accounting software to streamline financial management. This tool simplifies record-keeping, categorizes transactions, and provides a comprehensive financial overview.

  4. Establish a Regular Salary: Structure your finances to include a consistent salary for yourself. This approach helps maintain a clear financial boundary between personal and business income.

  5. Organize and Segregate Receipts: Keep your receipts organized and separate. This practice facilitates efficient record-keeping and simplifies the process of distinguishing personal and business expenses.

Maintaining this division between your personal and business finances is essential not only for your peace of mind but also to ensure the sustainability and compliance of your business model.

You should inform HMRC within three months to avoid a £100 penalty. If you're nearing this deadline, please get in touch with us. We will assist you in submitting the form promptly.

HMRC may request to examine your accounting records at any time, so it's essential to keep your records readily available. Recently, the number of investigations has significantly risen as there is a need to recover more income tax receipts. HMRC has the authority to scrutinize your accounts for several years in retrospect. It's advisable to retain your business accounts and tax records for a minimum of 5 years, and the more organized they are, the better.

The process of transferring paperwork and information, such as obtaining discharge approval from one accountant to move to another accountant, varies based on your needs and location. Clearance letters are typically delivered through both email and postal mail, but the most efficient and quicker method is through email, as opposed to sending the documents by post.

Certainly, we can handle all your accounting needs, which include bookkeeping, payroll, VAT returns, and year-end compliance. We also offer management accounts and business consultancy tailored to your specific requirements.

No, we do not. We provide you services using fixed fees which will be determined before the work is undertaken. You can discuss with us regarding our prices for company accounts, tax returns and we like to agree these fees upfront before the work is started.

That depends on the services that you are looking for and on your business. So basically, the costs are determined by the size of your business and your accounting needs. In any case, we can assure you that our service is cost-effective.

First, there's no need to panic. Your actions should depend on the type of mistake you've made:

  1. Missing Information: If you've left out specific information, the IRS will likely contact you to request that missing information. In this case, you only need to provide the requested information correctly.

  2. Calculation Errors: If you've made mistakes in your calculations, the IRS will catch them. The IRS conducts a thorough review, so many small mathematical errors are typically discovered during processing. You usually won't have to correct minor errors.

  3. Missed Credits or Deductions: If you forgot to claim a credit or deduction or failed to report some of your income, you will need to file an amended tax return using a 1040X Form. You can find these forms on the IRS website.

If you have more questions or concerns about an error on your tax return or need assistance with filing an amended tax return, please don't hesitate to contact us. We're here to help.

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