To me VAT seems to be the area which most small businesses struggle to get their heads around. Questions arise on what items of expenditure VAT can be claimed upon and more often than not retrospective adjustments arise when the year end accounts are prepared because of this.
One of the main difficulties for businesses is working out how to maintain access to cashflow. Despite having a healthy profit outlook, it is easy for debts to start mounting up if cash is not available at the time when your invoices need to be paid.
Xero is a popular accounting package here at the office, a couple of years ago when Xero first got introduced to us here at Plus Accounting as the new development in the world of ‘in the cloud’ accounting, I was very interested to see how it would progress across the practice and growing industry.