If you are a new company and have no accounting experience, you will encounter the terms often mentioned by accountants. We have prepared a list of term saboteurs to help you understand the meaning of the terms, because the terms you initially used may be confusing.
-
Accountant – An accountant is the person responsible for the financial affairs of a company. The services provided by accountants may depend on the needs of individual clients. Accountants can provide analysis and suggestions on behalf of customers, prepare financial reports, manage financial data, and submit tax returns.
-
Real accounting – Real accounting usually shows the true and accurate records of the company’s year-end business, including all assets and liabilities.
-
Audit – An audit is a formal inspection of a company’s financial books. Audits are usually completed prior to the submission of year-end accounting. It is worth noting that your accountant cannot complete the audit of your business account, which needs to be completed by other accounting companies.
-
Audit Trail – An audit trail is a series of documents that provide evidence about a business’s transaction history. The main purpose of audit trail is to help auditors view all business transactions within a period of time.
-
Balance Sheet – The balance sheet provides a snapshot of the company’s financial position at different times. Displays the value of the business, including all assets and liabilities.
-
Bookkeeper – A bookkeeper records all business transactions in a ledger or uses computer software to accurately record them. The bookkeeper can make a report and submit it to the client or accountant.
-
CIS Subcontractor – The abbreviation CIS represents the construction industry plan, which is applicable to subcontractors and subcontractors. This plan applies to all amounts paid to the construction industry, such as builders. If you have not used this program before, we recommend that you seek advice from HMRC.
-
Capital gains tax – The capital gains tax applies to all profits obtained from the transfer or sale of assets, the acquisition of asset compensation or the donation of assets to dispose of assets. HMRC has complete guidelines to help clarify all exemptions from the rules.
-
Archive and Submit – Archive and submit are terms HMRC uses to import accounts. This can be done by filling out a return or submitting details on the HMRC website. Enterprises that file or fail to file tax returns within the specified time can be fined.
-
Payroll – Payroll handles the accounting of employee salaries. These include tax breaks, state contributions, sickness or vacation absences. Submit details to HMRC using P45, P46, P35 employer annual reports, P11d employee fees(including paying 1A level national insurance), P11DW6 mile allowance and other formats.
-
VAT Return – A VAT return is a form used to submit company financial details to HMRC. This can be achieved online through the online archiving system, or through the paper form sent by HMRC. The information provided in this form will help HMRC calculate credit or liability payments.
-
Year end – Year end refers to the business end date. Initially, the end date of the new company may be different from the fiscal year(also known as the fiscal year). The beginning of the year is April 5.
