Aside from creating Invoices (sales), tracking Expenses (costs) is the other variable in the profit equation.
Why does tracking Expenses matter?
Many Business owners tend to focus on business growth which is reflected in your sales figures. Tracking Expense accurately is less glamorous but of equal importance. Failing to do this can have two significant impacts: –
Firstly, not claiming legitimate expenses means that you are paying for things out of your personal money – this is money that you have most likely paid tax on. Secondly, failing to record real costs against your business will artificially boost your profits – profits that you will subsequently have to pay tax on.
What are the practical issues when tracking expenses?
Although obtaining an Expense Receipt from a Supplier is relatively straight forward, it is a lot more challenging storing and managing these important documents so that they can be referenced by your Accountant and the relevant Tax Authorities.
How does Rhino help?
Recording Expenses could not be easier using your phone. You simply select the Expense Type, enter the Expense Amount and finally take a photograph of the Expense Receipt. The Expense Receipt is safely stored in the Rhino Cloud as an Electronic Document or image that can be referenced instead of a paper document.
The Most Frequently Asked Question.
The most frequently asked question is “Are Electronic Documents Acceptable to the Tax Authorities and my Accountant? The quick answer is YES and they have been for over 15 years in the UK. In addition to being easier to store, Electronic Documents also have another key advantage, they don’t fade.
Boost your Income
Many small businesses need to purchase materials for work carried out for on behalf of their customers. In a busy world, Expense Receipts can often be filed in someone’s back pocket or jacket pocket or the glove compartment or dashboard of their vehicle.
Getting Expense Receipts back to the office is another challenge If your staff spend most of their time out of the office working with customer.
Your Books are automatically Prepared
Many Small Business Owners talk about spending evenings and weekends getting everything ready for their Accountant. By providing your Accountant with access to Rhino, they can automatically browse the Expense Receipts that you logged and you will no longer need to ‘prepare’ your books.
VAT & Tax Returns
Rhino will submit your VAT Return and also your Self-Assessment Tax Returns.