Many artists, actors, writers and businesses using our services have made the tricky decision to seek expert advice on their tax returns, and as such have enlisted our help. Whilst we salute this decision making and strive to provide a service as dedicated as you would expect from someone in-house, we have noticed one thing: we know more about your finance than you do.
As experts in bookkeeping services in London for creatives, we are familiar with accountancy software and its incredible capacity to produce just about every piece of financial data you need to maximise your earnings. Below we examine some things that you should be checking on.
#1 How are you shaping up?
Whereas freelancers don't all have detailed business plans, you should have an idea of strategy for where you want your finances to be going. For example, you may need to afford a costly subscription to a guild or even database. You might need to enlist an agent or manager and this will be part of your goal over the course of the next year. A tax return specialist will be able to help you forecast your financial future.
#2 Measuring up
One of the most important things an expert accountant will be able to tell you is whether or not you are making a profit in your freelance work. This may seem easy, as if you have had money coming in surely it's a profit; right? Wrong! The good news is financial experts know how to apply ratios to examine the health of a business and identify what, if anything, needs to be worked on.
#3 Go with the flow
Basically, you can be getting a high volume of work coming in and be working sometimes inhuman hours to accommodate this; making you all the money in the world. BUT if your cash flow is adverse, all the accelerated effort could have a negative effect. An example of this is if your key overhead is agency fees but clients take over 30 days to pay you for work done. In addition to compiling your tax returns, we can advise about achieving financial sustainability.
#4 Invoice management
As any tax return specialist worth their salt will tell you, running a debtors book is one of the most important piece of documentation you will need to survive and prosper as a freelancer.
We can supply you with a regular list of debtors showing those that are 30, 60, 90 days old or (hopefully not) even older. Essentially, this is your money and as such should be in your bank account and we can help you track who should be reminded about their invoices.
#5 Tax deductions
Of course, you know our views on tax avoidance! We in no way advocate that. However, we can recommend simple ways in which your freelance business can keep its tax bill to a minimum. Adhering to guidelines published by HMRC, can find solutions to legitimately reduce your tax bill; freeing up some cash for the odd treat!
For more information about our bookkeeping services in London for actors please speak to us today. +44 (0)20 3757 9290