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02Day to Day Management of Your Limited Company
eBook Series: Starting and Running a Successful Limited Company
What’s in this guide:
Business essentials1Welcome to inniAccounts and your guide to managing your business finances day to day.
We’ll show you that admin can take as little as 15 minutes a day so you can spend more time on what you’re best at – being a contractor or consultant.
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0
Original photo by markus spiske
Business essentials for your new company
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0Purchasing and keeping records Keep a record of every purchase and the VAT receipts safe and claim these back as business expenses.
Investing in your business kit Buy core essentials such as laptop, software, phone, printer, scanner, storage devices and office furniture.
Creating your corporate image Invest in your company’s logo, stationary, website, and professional online profiles that you want potential clients to see.
Original photo by Remy Sharp
Working smarter Spend less time running your business and more time earning money with hundreds of tools and apps to help you work smarter.
Workspace and trackingCollaboration and communication
Original photo by Chung Ho Leung
Tools and apps for successful owners
Contractor's culture: working on site
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0From employee to contractor: a culture change
You’re no longer paid to turn up and perform tasks; but for what you achieve. You are in control of how this is delivered. Delivery = Pay
Stay outside of IR35 Avoid being taxed as an employee by acting as an independent business owner:
• Stay out of office politics• Don’t perform tasks outside of
your contract• Don’t accept employees benefits
Original photo by The Natural Step Canada
Day to day record keeping
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0Why keeping records?
• To ensure there is adequate cash flow to cover outgoings
• For HMRC audits• To simplify admin
What you need to track
Items to record Auditable proof
Your time Invoices, contracts, timesheets, notes
Expenses: Business & personally paid
VAT receipts, delivery notes, related project
Journeys Business mileage, parking receipts
Original photo by Steven Depolo
Day to day record keeping
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0 The 15 minute track challenge
Make it simple, fun and finite, and never get behind the office admin
• Create a 10-15 minute playlist and use it to time your concentrated effort.
• Hit play and record all of the details.
• Create a holding area for items that need tracking.
• Log it, scan it and file it. Done!
Original photo by Jon Grado
Business expenses
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0
Original photo by John Althouse Cohen
What are business expenses? Necessary and wholly and exclusively incurred as part of the day to day running of your business.
Claiming expenses Maintain auditable proof of your business expenses
• Receipts• Date, VAT, total cost, description• Paid by the business or person
Examples See the full list of allowable and tax-deductible expenses here.
VAT registration
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0
Original photo by 401(K) 2012
Why register for VAT?
You can recoup the VAT charged to your business
Join the Flat Rate VAT Scheme • Pay a lower VAT flat rate to
HMRC• Retain the difference in what you
charge and what you pay• No need to reclaim VAT on
business expenses as it’s covered
Criteria to join Find out if you are eligible here.
Invoicing effectively
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0
Original photo by Camilo Rueda López
Achieve optimal cash flow
Ensure you have a steady stream of income coming into the business.
• Plan the frequency of outgoings• Invoice timely and regularly• Keep detailed records • Make it easy to pay• Keep track of payments• Chase late payers
What to put on your invoice Discover even more tips for efficient invoicing here.
Managing late payments
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0Maximise timely payments
Understand your clients and tailor your invoicing to each client.
Manage late payments • Include a clause in your terms• Approach issues early, call and
check• Be firm and fair• Follow government guidance for
debt collection
Original photo by frankieleon
Protecting client relationships How to manage your clients and minimise late payments - here.
Paying yourself
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planning for absence9
Day to day checklist10
Welcome0
Original photo by The Nth Degree
Releasing cash from your business
Your earnings = Salary + Dividends + Expenses paid from personal funds
Salary and dividends
A blend of appropriate level of salary and dividends will minimise your personal tax liabilities, such as National Insurance and Income Tax.
What is the best salary for you? Watch the video on the next slide.
Paying yourself: setting up payrollPaying salaries requires a payroll It also enables you to pay expenses, ensure tax and NICs are calculated, and you comply with the HMRC RTI requirements.
Original photo by The Nth Degree
Planning for absence
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planing for absence9
Day to day checklist10
Welcome0Arrange time off in advance Remain flexible and plan holidays around client’s needs. Avoid taking breaks during contracts.
Plan your earnings 1 week of public holidays (8 days)5 weeks holiday
+ 2 weeks unplanned absence
44 weeks spent earning per year
Lessen the impact • Give notice as soon as possible• Avoid ‘employee protocols’• Consider medical insurance• Make financial provisions
Original photo by Alice Popkorn
Day to day checklist
Business essentials1
Contractor's culture2
Record keeping3
Business expenses4
VAT registration5
Invoicing6
Late payments7
Paying yourself8
Planing for absence9
Day to day checklist10
Welcome0Stay on top of your admin Here are bite-size pieces of admin to keep your business running smoothly
• Maintain your daily records of time, expenses and journeys
• Bill clients and plan ahead weekly • Pay yourself monthly and keep
your finances up to date• Focus on strategic goals and
statutory requirements each quarter
Key dates and deadlines Find the complete checklist here.
Original photo by Next TwentyEight
1. Preparing to Set Up Your Limited Company
3. Tax Optimisation Strategies for Your Limited Company
"I really wish I had access to this book when I first started - I highly recommend this for any early business owner.”
(Amazon Review)
2. Day to Day Management of Your Company
Discover more in this series:
