Beginning back in 2004 under the name of Enterprise Week and having great success across the UK, the idea quickly spread across the world, with each country seeing great success. In 2008 Enterprise UK and Kauffman Foundation (the largest entrepreneurship foundation based in America) founded the first Global Entrepreneurship Week. Since then the week has continued to grow and further develop.

It is a week that aims to create a national conversation about entrepreneurship to help connect people, enabling them to share ideas and support the next generation of entrepreneurs and business owners.

This year Global Entrepreneurship Week takes place from 14^th – 20^th November 2011. During the week a variety of events will take place around the country, and world. To check out what is happening in your local area check out www.gew.org.uk

Here’s a list of some of the things every business is likely to need to consider:

• Registration – If you’re going limited, will need to register with Companies House at a small cost. In addition, if you want to protect your brand name from being used by others, there will be copyright and trademark costs.

• Professional memberships – Registering with professional bodies is a legal requirement in some industries. In others, you may wish to do so by choice to show the standard of professionalism you work to. In either case, there will be costs involved.

• Office – If you need an office, this won’t just set you back in rental costs. You’ll also need to research council tax, water, communications and energy rates, calculate costs of kitting out the office with desks, computers, office stationery, and so on.

• Transport – Depending on your type of business, you may need to travel for work, and may even need to purchase specialist business transport (for example, a plumber might need a van).

• Tools – Most businesses have ‘tools of the trade’, even if these are a computer and specialist software as opposed to paint brushes and paints. Work out which tools you’ll absolutely need to set up your business. You may have a few things that are essential, and then hold off purchasing the rest until you have started bringing in a profit.

• Website – These days it is important to have a website and web presence whatever business you are in. Costs are variable here depending on what you want to achieve – if you want to sell products online, this will inevitably cost more to put in place than a basic site that just shares your business details. In costing up your website, don’t forget to factor in buying your domain name, design, hosting, set up and email services.

• Promotional items – If you’re planning on networking in person, you’ll certainly need business cards. Depending on your business type and launch plans, you may wish to purchase posters, t-shirts and other promotional items. Remember there are a lot of ways to promote your business for free, so don’t assume you’ve got to pour masses into marketing from day one.

• Wages/ Employees – To start with you may not have any employees, but you will need to pay yourself a wage. It is likely to be less than you would normally earn because you are starting out, but it’s important to be aware of how much you’ll need to cover your own bills as well as keep the business cash flow healthy.

There you have it, all the things you need to cost for before starting your own business.

In this guide, we cover the bookkeeping basics that every small business owner should know, from simple steps like keeping receipts together, to the more complex business of categorising your financial records.

The three files you must keep

As a minimum, you should keep a cash book, a sales invoice file and a purchase invoice file. Your cash book details payments in and out of your bank account, your sales invoice file details all the sales that you’ve made and whether they’ve been paid for or not, whilst your purchase invoice file details any purchases you’ve made, as well as when and how you paid for them.

If you use accounting software, you can use it to store all of these records, but if you don’t, a simple series of spreadsheets should suffice.

Check your bank statements

Spend time checking each and every bank statement you get to ensure that no mistakes have been made and that no fraud has taken place. It will also give you a complete breakdown of exactly what your income and expenditure is, and allow you to spot trends and ensure your cash book entries are accurate.

Get proof of purchase for everything

It’s best to get a receipt for everything that you buy for your business, no matter how large or small. It will make it much easier to look back through and update your records, and it will also mean that you have all the required proofs of purchase should the taxman decide to do an audit.

Separate your business and personal accounts

You should have separate bank accounts for personal and business use and should only use funds in your business account to fund purchases for your business.

Clear a regular slot in your calendar

When you’re busy with everything from meeting client deadlines to pitching new business, it can be easy to throw your receipts in a box, leave invoices on your ‘to do’ list and ultimately, lose track of your books altogether. Set aside a regular time each week – clearly marked out in your calendar as a recurring appointment – to keep on top of your accounts, and stick to it!

Remember it’s more than just ‘best practice’

Putting off going through your books and generally being disorganised is a big no-no. Not only will HMRC fine you if you are late in filing any financial documents, but you cannot run a business effectively if you don’t have a firm grasp of your finances.

If you’re struggling with your record keeping, give us a call on 01327 856076 and we’ll be happy to talk you through your options.

If you have paid in excess of the maximum NI contributions required for the tax year you can reclaim the excess amount. The PAYE system will normally ensure that you will not pay more than the annual maximum on your regular employment. However, if you have two or more concurrent employments in the tax year, or you are employed and self-employed at the same time, you may pay more NI in the year than the annual maximum.

Each taxpayer has their own annual maximum figure based on their individual earnings. The annual maximum NI for employees will be at least £4,279 and for taxpayers who are both employed and self employed the annual maximum is at least £3,180. However, you need to add to those figures the amount of NI payable at the additional rate (currently 1%), which cannot be reclaimed.

If you believe you have paid more NI than your personal annual maximum you can reclaim the excess by writing to the NI Office in Newcastle upon Tyne. You don’t have to calculate the amount of NI repayment due, as the NI Office will do this for you. But you must provide evidence of your earnings during the tax year, such as P60 forms or accounts. We can help you with all of this.

There is no time limit for reclaiming overpaid NI contributions, so you can submit claims for all past years where a repayment is due.

If you are likely to overpay NI for the current tax year you can apply to defer the NI charges on one of your jobs. Do this by completing form CA 72A for employees, or form CA 72B if you are also self-employed. It is not too late to submit either application.

VAT Rates and Refunds top

VAT can be very complicated at times! Most goods and services carry VAT at the standard rate, which is currently 17.5% and is due to increase to 20% on 4 January 2011. However, some transactions, such as financial services, are exempt from VAT, and some goods, such as children’s clothes, carry VAT at 0%.

To confuse matters even more, certain services can carry VAT at 5%, or 17.5% or 0%, depending on the circumstances. For example, renovating a house that has been empty for at least two years can carry VAT at 5%, but repairing a roof on another building will generally require VAT to be charged at 17.5%, unless the building has ‘listed’ status when the work may be zero rated if it is an approved alteration.

If you find you have charged VAT at too high a rate to your customer you should refund the excess VAT charged, if this is practical and possible. You also need to correct your VAT returns for the excess VAT paid over to the VAT office. You can only make a claim for overpaid VAT for VAT periods ending in the last four years, so don’t delay if you find an error that covers several periods.

If you have been touched by this tragedy, UNICEF http://www.unicef.org.uk/ is calling for businesses to make a contribution, which can be generated in a number of ways:

A corporate donation is a straightforward transaction of funds, which UNICEF will then publicise to key stakeholders. If you want to get your whole business involved, employee fundraising provides an opportunity for everyone to show their support. Face to face appeals, targeting potential donators through your database or website, or adding a minimal charge to bills, which goes straight to charity, are all ways in which you can engage your customers in the cause.

For companies and sole traders who wish to give to charity, tax relief is available:

If you’re self-employed or a partner in a business, you can take advantage of the tax relief available for individuals on gifts of money, claiming them on your Self Assessment tax return.

If you give money to a charity or Community Amateur Sports Club (CASC), you can use Gift Aid http://www.hmrc.gov.uk/charities/gift-aid.htm. This increases the value of your donation at no extra cost to you, by allowing the charity to reclaim basic rate tax on your gift. If you pay higher rate tax you can claim extra relief on your donations.

Gifts of money made to a charity by a company should be paid gross, before tax is deducted. These donations are deductible from the total profits of your business when calculating Corporation Tax.

Companies can claim for Corporation Tax Relief, as long as the donation is a payment of money that is not a distribution of profit, such as a dividend. Qualifying donations can come from the company or a ‘connected’ person, which includes relatives. For more information about qualifying criteria and the benefit value, visit: http://www.hmrc.gov.uk/businesses/giving/companies.htm.

When your company makes a qualifying donation to a charity the amount paid is treated as a ‘non-trade charge’ – this means your company can make a claim in its Company Tax Return to set the amount of the donation against its taxable profits.

Your company should keep normal accounting records to support entries on your Company Tax Return along with any other relevant documentation; for example correspondence with the charity in relation to the donation such as a ‘thank you’ letter.

You must keep your tax records for at least six years after the end of the accounting period to which they relate. If HM Revenue & Customs (HMRC) makes any enquiries about your Company Tax Return you will need to keep the records until the enquiries are completed.

The research reveals that a third of firms (31%) have not taken any steps whatsoever to prepare their business for the upturn, while 36% don’t believe they need to do anything to ensure their business is ready to benefit as the recovery starts to gain momentum.

Amongst the 31% of firms that have not taken action to prepare for a recovery, 17% stated they hadn’t thought about it. However, 43% recognised that taking such steps would be essential if they were to survive in the long term. Almost half the firms questioned claimed they did not need any more help to prepare for the recovery. However, 51% of businesses surveyed recognised that well prepared businesses benefited during the last recession.

Almost two thirds (64%) believe their business will suffer from low cash resources, while 23% believe depleted capital will be an issue. A similar number (22 per cent) fear they will lack the capacity to meet demand for their products and services, while just over one in eight (13%) are concerned about potential management or strategy gaps.

Those businesses that have started to prepare for recovery are clear about the importance of taking action. Two thirds (66%) say they need to act now in order to benefit, while two 42% say they don’t want to lose out when the recovery arrives. A further 14% say they learned their lessons in the last recession.

The steps taken by those firms who have begun preparing is varied. 27% have sharpened up processes and working practices, and the same number have made efficiency improvements. One in ten (10%) have sought additional funding, while 6% have boosted research and development efforts. A further 5% are working to establish international networks, with a view to improving export prospects. The same numbers are looking more closely at the opportunities presented by the green economy.

John Maltby, managing director, Lloyds TSB Commercial said:

“Recession has weighed heavily on UK businesses and it is easy to see why talk of a recovery might bring welcome relief. But in the same way that we have encouraged firms to take action to survive the downturn, they will also need to prepare for the return to growth.

“The shape and scale of any recovery is still uncertain, but one thing is clear – those businesses already looking towards the upturn and planning how to make the most of it, are the ones which will thrive. And those firms that sleepwalk towards recovery risk not just losing out but falling into the overtrading trap.”

James Caan, entrepreneur and Dragon’s Den judge, said:

“Those businesses that have adapted, diversified and are prepared for the upturn are well placed to prosper and grow as the economy recovers. Businesses without a plan seldom go far and that’s especially true in times like these. It’s important that companies act now to plot how they’ll approach the opportunities that exist in the prevailing economic climate.”

The Committee also voted to continue with its programme of asset purchases, known as quantitative easing, totalling £175 billion financed by the issuance of central bank reserves.

The Committee expects the announced programme to take another month to complete, the scale of which will be kept under review.

Commenting on today’s decision, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“Though we are not surprised by the MPC’s decision to keep Bank Rate at 0.5%, we are disappointed by their reluctance to increase the QE programme beyond £175 billion.

“There is worrying evidence that earlier hopeful signs of improvement in the economy are weakening. To counter serious risks of relapse, we urge the MPC to raise the QE programme to £200 billion.

“Persistent weakness in lending to companies, particularly to small businesses, is a serious risk that the MPC must address. To unblock impediments to lending, the MPC should cut the interest rate paid on deposits kept by commercial banks at the Bank of England, and make this rate temporarily negative. This would discourage hoarding of cash and encourage banks to lend.”

“The rise to 5000 on the FTSE100 means that the market has rallied in excess of 40 per cent since the low point reached in early March 2009. Economic growth across the world has been picking up in response to unprecedented levels of Central Bank stimulus and looking ahead there are two reasons for investors to remain hopeful that the rally can continue, at least in the short term.

“The first is that there is no sign of inflationary pressure picking up meaning that Central Banks can continue to inject liquidity into markets. Indeed, on Thursday, the Monetary Policy Committee left the UK Base Rate at 0.5 per cent and announced its commitment to continue its policy of quantitative easing, a policy that would have to be reversed if inflationary pressures begin to mount.

“It is likely that inflation will only begin to rise once unemployment begins to fall and wage growth starts to pick up, and unemployment is likely to continue to rise for some time yet. Economic growth with low inflation has historically been a so called ‘sweet spot’ for equity markets.

“The second reason to feel confident is the implication of the Kraft bid for Cadbury that took the markets completely by surprise on Monday morning. Blue chip FTSE100 stocks do not normally rise 40 per cent in a single morning on news-flow that has been even vaguely discounted. Investors were clearly shocked and the bid represents £10 billion worth of corporate confidence in the future as well as highlighting just how undervalued some stocks have become, placing a floor under valuations. The fact that the offer is a mixture of cash and shares is an indication that the credit crunch may be behind us now.

“Despite the optimism of these two points, ultimately everything will depend upon the consumer. Central Banks have provided the liquidity but it is up to the consumer to spend rather than save and there is little sign of this happening yet. However, the good news is that stock markets are discounting mechanisms that ‘climb walls of worry’ and looking ahead this should continue to be the case.”

More than half (54%) of UK SMEs report that they are confident their business will survive the downturn and almost half (48%) claim that they have taken no additional measures to ride out the downturn.

Among those who have taking action to survive the downturn, almost nine out of ten (88%) reported that they have not enforced salary cuts, while 87% have continued with bonus payments. Furthermore, more than four in five (85%) have made no cuts to entertainment budgets and eight out of ten (82%) are continuing to spend the same amount as previously on office maintenance.

The report also reveals that, unlike larger companies, the UK’s small businesses have also for the most part been able to avoid redundancies, with less than one in ten (9%) opting for layoffs.

Alan Thomas, small business insurance expert at Hiscox UK, said:

“SMEs are an integral part of the UK’s business landscape and an important indicator of the health of the national economy, so it’s good to see that many are so confident about their survival prospects and have avoided some of the more difficult measures such as salary cuts and redundancies.”

But despite this seemingly confident outlook, the report found that the majority of SMEs think the recession will continue beyond 2009, with only 7% of the belief that the economy will improve by the end of this year. In fact, 45% don’t predict a recovery before September 2010, while an even more pessimistic 23% believe Britain will be mired in recession until 2011 or beyond.

Declines in business investment occurred in most industries, with the quarterly fall in business investment mainly due to reduced capital spending by industries classified as private sector manufacturing (down 16.8 %), private sector non-manufacturing (down 9.7%) and public corporations non-manufacturing (down 7.2%).

Within the private sector manufacturing the fall in capital spending was due to industries within food, drink and tobacco (down 20.8%), engineering and vehicles (down 24.2%) and textiles, clothing, leather and footwear (down 25%).

Within the private sector non-manufacturing there was reduced investment for other services (down 11.4%), construction (down 9.1%), other production (down 5.7%) and distribution and services (down 5.6%)

The reduced capital expenditure in other services was mainly from industries classified within
Other services (down 24.9%), financial intermediation (down 15.8%) hotels and restaurants (down 15.6%), real estate, renting and business (down 8.0%) and health and social work, slightly offsetting the reduced capital expenditure (up 13.4%).

The reduced capital expenditure in other production was mainly from industries classified within electricity, gas and water (down 9.2%), mining and quarrying (down 5.6%) and agriculture and forestry, slightly offsetting the reduced capital expenditure (up 5.9%).

Compared with the second quarter of 2008, total business investment fell by 18.4%. This fall was mainly from private sector and public corporations non-manufacturing investment down 18.4% and the private sector manufacturing also down 18.4%. Within private sector non-manufacturing investment construction fell by 47.0%, other services fell by 21.4%, and other production fell by 10.7% compared with the second quarter of 2008.