Cash accounting Gwent : Green & Co

Cash accounting

If you are a small business with cashflow concerns, the cash accounting scheme is a useful tool that Green & Co can advise you on and help you to implement.

The advantages of the scheme include:

Delayed payment of output tax

Output tax is not due until you receive payment of your sales invoices.

Bad debt relief

There is automatic bad debt relief with cash accounting, because if your customer never pays you, you never have to pay the VAT.

Ease

Most businesses find it easier to think in terms of cashflows in and out of their business, rather than invoiced amounts.

Cash accounting requires a slightly different method of record keeping. There are potential disadvantages to the scheme too, making the decision to change over a considerable one.

We will help you weigh up the benefits, decide what is best for your business, and ease the burden of submitting your VAT returns.

Contact us to find out more about how we can help with cash accounting.

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