Believe it or not, there’s far more to the tax year than the frantic tax returns season. Nevertheless, there’s still plenty going on between early April and late November.
So, what does your accountant do during the summer?
Review of the tax return season
One of the first things we do is review how the season has gone. Did the practice encounter any difficulties? Were there particular issues with clients struggling to get their information together within the strict time limits? Sending out reminders for clients to get their information together goes so far, but with so many conflicting priorities in business, dates can slip. Now’s the time to identify clients who have struggled (perhaps their peak period coincides with SA time, for example). There will inevitably be good-intentioned but repeat offenders every year. Now’s the time to get some practical support in place. For example, Rackhams offers a free HMRC safety checklist on our website, giving tips and advice to stay on top of tax obligations. https://www.rackhamsaccountants.co.uk
For some clients, a stressful tax return experience highlights the need to beef up their accounting support. Bookkeeping services are a classic example. Dealing with finances and cash flow month to month helps the business get a better picture of where they are and means there’s far less work to get ready for the tax return. Now’s the time to raise these issues and get the arrangements in place, including new software and any training requirements.
Of course, it’s not all about the clients; we’ll also analyse how our staff and resources coped. For example, were there any avoidable technical issues, and has it highlighted any training or staffing issues? Summer will be the time when practices focus on these areas in readiness for the next wave of pressured activity.
Deadlines keep on coming – payments on account
Of course, April 5 may be the most important date in the tax calendar, but it’s by no means the only one. The deadline for 2nd instalments payments on account comes around smartly on July 31. Accountants can get busy completing tax returns early to help clients avoid paying what the HMRC is expecting. If a business has a good year, followed by a less profitable year, the most prudent thing to do is to get the actual figures to HMRC rather than paying a sizeable chunk of money that may not be a fair reflection of their tax obligations. See HMRC information: https://www.gov.uk/understand-self-assessment-bill/payments-on-account
Audits follow tax-returns
The year’s first quarter isn’t the only time when all eyes turn to one aspect of the financial year. For companies that have to submit a full audit, the best time to do it is immediately after the end of the tax year. That way, any inaccuracies or problems are highlighted and dealt with. Audits take up a lot of time and can keep a busy accountancy practice fully occupied for months. Rackhams offers a comprehensive auditing service and advice on HMRC obligations. https://www.rackhamsaccountants.co.uk/audits/
Looking after our clients
Last but not least, passing the most frantic time frees time for all the other things clients need.
· Analysing and making recommendations regarding business profitability
· Working on forensic accounting services for clients
· Offering support for company takeovers and business sales and purchases.
· Retirement planning for individuals
· Advising on asset purchases and major funding decisions
· Sourcing finance, including grant funding
And much, much more…
There’s time for summer fun too
Yes, we are still talking about accountants!
Understandably, accountants aren’t big fans of staff taking annual leave in the ‘silly season’ first quarter, so you won’t find many accountants or bookkeepers on the ski slopes. However, everyone needs a break at some point to recharge their batteries!
Accountancy staff like to party as much as their neighbours in the business park. The Covid pandemic has changed company annual do’s somewhat, with many more companies opting for a summer celebration with colleagues, accountancy firms included. Of course, they’ll take full advantage of the £150 per head taxable allowances to have a day at the ‘seaside’!
So, there’s more to accounting than tax returns; your accountant’s here all year round.
Rackhams Accountants wishes clients and fellow accountants alike a great summer!
Visit our website for more information on all aspects of accountancy services for individuals and businesses of all sizes. https://www.rackhamsaccountants.co.uk or call us to book a free, no-obligation consultation on 01482 631700
