Category Archives: Accountancy Advice

Sole Trader vs. Limited Company: Which Should I Choose?

When starting a small business, it's essential for you to make a decision on the structure that suits your operation. It can either be a self-employed (sole trader), a limited company or a partnership. Setting a business up as a sole trader has become the foremost popular legal structure within the UK. There were approximately 3.5 million sole proprietorships registered in 2019. Sole traders accounted for 60% of small businesses within the UK. Also in the UK, there are over 1.9 million limited companies, making it the second biggest legal structure. It is very important to consider the pros and cons of the different legal structures before deciding your business structure.

What is a Sole Trader?

A sole trader is a self-employed person who is the sole owner of their business. It’s a simple business structure...

Why do Charities Need Accountants?

Accounting for charities is very important as they're handling the money of the public. Donors have the right to know how their donated money was spent. Above all, charity accountants should be aware that business and charity accounting is not the same. Some laws and regulations must be followed when accounting for charities. In charity accounting there are four different types of funds:
  • Unrestricted funds: these are funds that charity trustees can use for their personal use
  • Designated funds: these are unrestricted funds that trustees have put aside for a specific purpose
  • Restricted funds: these are funds given to a charity for a specific purpose and must be used for that purpose
  • Endowment funds: these are funds given to a charity representing capital. Funds like these are to be invested or used for other charitable...
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