Perhaps the secret lies in preparation. Only those businesses that can anticipate potential difficulties, and take a proactive stance before it becomes too late, will weather the storm. Sometimes tough decisions made now can prove to be vital for the future health of the business.

Whilst the Government may appear to be introducing more flexible arrangements to help small to medium sized businesses, at the end of the day payments still need to be made to your staff, your suppliers and the Inland Revenue. Many businesses are waking up to the opportunities of outsourcing and bringing in specialist expertise that can make a real difference to the financial health of a business. One such specialist provider of outsourced business services is Cheltenham-based Oriel.

James Luxton manages Oriel’s Accounting Division and has helped many local businesses get into better shape: “We work closely with many clients to put their accounting affairs into better order and create a solid platform for the business to move forward. In some cases there is limited knowledge in-house to undertake the necessary remedial work, and these situations need to be well managed by people who have the expertise and understand the implications – both from a financial and legal perspective. It can be a complex area.”

Oriel can help clients with a number of first aid accounting remedies and tailor their services to suit clients’ differing growth stages. From setting up and reviewing accounting systems and processes, through to providing a BACS payroll bureau facility and business advice on a range of financing and insurance services – Oriel has much experience of working closely with their clients to help them save time, money and effort.

• A qualified accountant – check their experience with other businesses like yours (in terms of size, sector, location, particular challenges, etc.)
• HMRC – free advice can be obtained from the HMRC and they have lots of help lines covering all areas
• The web – there are plenty of business forums and articles to be found. Also do your own research including Google searches – it is quick and easy to check out the web sites of potential suppliers
• The relevant trade organisations
• Speak to colleagues and friends to see what works for them – and what doesn’t work! There’s nothing more powerful than a personal recommendation from a trusted colleague
• Your local Chamber of Commerce, Business Link and the Federation of Small Business can often point you in the right direction for advice on specific topics
• Local professional networking groups can be a good forum to meet other business owners who face similar challenges and issues to yourself

Do I need to register for VAT?

Hopefully yes as you will be obliged to register for VAT if your turnover exceeds £67,000 in any given year. It is therefore worth considering an early voluntary registration to get it out of the way.

Another advantage of early registration is that it will enable you to claim VAT on start up costs sooner.

Finally, as it is only small businesses that don’t need to register by issuing invoices without VAT you are signalling to your clients that you are only a small business – this may put you at a disadvantage compared to competitors who may look bigger and be perceived as more reliable.

Won’t registering for VAT make my selling prices more expensive?

If you are dealing with businesses that are VAT registered, then your own registration won’t matter as they will only be concerned with the net price.

If you sell to the public, then VAT will make the price more expensive but as you will need to register if your sales exceed £67,000 non-registration is only really worthwhile for small businesses.

How can Oriel Help with VAT registration?

We can monitor the likelihood of exceeding the threshold on an ongoing basis via quarterly or monthly management accounts. If you do decide to register, we can set this up for you and prepare the returns for you as part of our standard accounting service.