Article written by Malcolm Sackman
No matter the industry, whether an SME or a corporation, the financial health of a business is the key factor to its success or its demise. Many professionals do the bare minimum when it comes to their accounting and mistakes can be made as a result. In this article, we will see how professionals, particularly architects, can run a more efficient and profitable practice through proper financial management.
- 1. Take care of your accounting and Cash-Flow management:
- 2. Take full advantage of tax breaks:
- 3. Track large jobs’ profit margin:
1. Take care of your accounting and Cash-Flow management:
Accounting can be a hassle for architects as they are often working on projects or visiting sites to ensure the well being of their construction projects. However, nowadays, it is no longer necessary to waste time with countless paperwork. Indeed, accountants have turned the digital corner and now operate online just as well as in person. By finding a digital accountant you will be able to use cloud accounting solutions to facilitate and accelerate the whole process of sending financial statements. Cloud software makes it also a lot easier to follow your cash-flows as they will be accessible in a single file and detailed through a digital dashboard.
In the case of smaller businesses, we also highly recommend you take the time to download one of the many free accounting software available for SMEs and start-ups. They offer many features such as forward forecasting, tax planning and more. Some of the software we recommend is Xero, Float and Fluidly.
2. Take full advantage of tax breaks:
Capital allowances allow taxpayers to obtain tax relief on their tangible capital expenditures by allowing them to be deducted from their annual taxable income. Indeed, any item purchased by your company, classifying as plants and machinery (equipment, machinery, business vehicles, etc.) allows you to deduct part or the entirety of their value from your profits before paying taxes.
If your company has any research and development operations for the development or the improvement of a scientific/technological product or service, you can qualify for R&D Tax Reliefs.
3. Track large jobs’ profit margin:
If your firm is called on to handle large jobs it is necessary to go over each expense to see where profit margins can be incurred. Indeed, many architects and construction companies miss out on unrealised profits that once added up, can represent a consequent sum of money. More often than not, budgets are not respected and purchased materials may end up resulting in a loss for the firm, therefore it is important to keep track of your expenses and account for them asap.
There are many ways in which architects can run a more efficient business. You can contact Ten Accountants run by Malcolm Sackman for more information and assistance. Our highly trained team of experts will guide you in the right direction to running a more profitable business.
About Malcolm Sackman:
"At Ten we pride ourselves for being an alternative firm of Chartered Accountants.We are equipped to support you with our accountancy and tax expertise. We do all the things that you would expect- Accounts, Tax Returns, Tax Planning, Payroll, Bookkeeping and Monthly Reports on the key numbers. We love the cloud and are approved Xero partners."